Western Digital 8-K
PositiveEarningsNew guidance
Exabyte growth and improved pricing fuel sales surge; quarterly dividend raised to $0.175/share
Filed 2026-10-22 16:04 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q1FY27 results with Q2FY27 guidance. Revenue rose 55% Y/Y on robust customer demand, exabyte growth and improved pricing; non-GAAP operating margin reached 49.1%. WD raised its quarterly cash dividend 17% to $0.175 per share, payable 12/17/2026 to holders of record 12/04/2026.
Key Figures
| Metric | Q1FY27 |
|---|---|
| Revenue | $4.38B, +55% Y/Y |
| Gross margin (GAAP) | 57.8%, vs 43.5% |
| Gross margin (non-GAAP) | 58.1%, vs 43.9% |
| Operating income (GAAP) | $2.05B, +158% Y/Y |
| Operating income (non-GAAP) | $2.15B, +152% Y/Y |
| Diluted net income attributable to common shareholders (GAAP) | $1.78B, +54% Y/Y |
| Diluted net income attributable to common shareholders (non-GAAP) | $1.78B, +172% Y/Y |
| Diluted EPS (GAAP) | $4.63, +51% Y/Y |
| Diluted EPS (non-GAAP) | $4.64, +161% Y/Y |
| Operating cash flow | $1.60B, +139% Y/Y |
| Free cash flow | $1.38B, +130% Y/Y |
- Share repurchases were $1.00B, vs $553M in Q1FY26; cash and cash equivalents were $1.31B at quarter-end.
Against earlier guidance (derived from earlier filings)
| Metric | Period | Earlier guidance | Actual | Result |
|---|---|---|---|---|
| Revenue, non-GAAP outlook | Q1FY27 | $4.1B ± $100M; Y/Y growth of 42%-49% | $4.38B | beat |
| Gross margin, non-GAAP | Q1FY27 | 55%-56% | 58.1% | beat |
| Diluted EPS, non-GAAP | Q1FY27 | $4.00 ± $0.15 | $4.64 | beat |
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Revenue | Q2FY27 | $5.1B ± $100M | — | — |
| Gross margin (non-GAAP) | Q2FY27 | 60%-61% | — | — |
| Operating expenses (non-GAAP) | Q2FY27 | $400M-$410M | — | — |
| Interest and other expense, net (non-GAAP) | Q2FY27 | ≈$15M | — | — |
| Tax rate (non-GAAP) | Q2FY27 | ≈17% | — | — |
| Diluted EPS (non-GAAP) | Q2FY27 | $5.80 ± $0.20 | — | — |
| Diluted weighted average shares (non-GAAP) | Q2FY27 | ≈380M | — | — |
Investor Takeaways
- Watch Q2FY27 revenue, non-GAAP gross margin and non-GAAP EPS against the guided ranges to assess whether demand and pricing momentum continues.
The summary is written by an AI model reading the filing.
Model 005 · prompt v95 · 2026-10-22 22:50:08Z