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Western Digital (WDC)
NASDAQ:WDC
Earnings Data
Report Date
Apr 23, 2026After Close (Confirmed)
Period Ending
2026 (Q3)Consensus EPS Forecast
2.34Last Year’s EPS
1.36Same Quarter Last Year
Strong Buy
Based on 19 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a strong operational and financial quarter with robust revenue and EPS outperformance, substantial exabyte growth, expanding gross margins, significant free cash flow and strengthened customer contracts. Key growth drivers include rapid ePMR/UltraSMR adoption, HAMR qualification progress and high cloud demand. Principal risks noted were the still-to-ramp HAMR program (timing/execution risk), concentrated cloud exposure (89% of revenue), a small decline in consumer revenue, and remaining SanDisk shares and debt that management plans to monetize or reduce. On balance, positive metrics, margin expansion and strong cash generation materially outweigh the disclosed risks.Company Guidance
Revenue and EPS Outperformance
Revenue of $3.0 billion, up 25% year-over-year; non-GAAP diluted EPS of $2.13, up 78% year-over-year. Both revenue and EPS finished above the high end of guidance.
Strong Exabyte Shipments and ePMR Adoption
Delivered 215 exabytes in the quarter, up 22% year-over-year. Shipped over 3.5 million units of latest-generation ePMR drives (≈103 exabytes) with capacity points up to 32 TB UltraSMR, demonstrating broad customer adoption.
Cloud Revenue Expansion
Cloud represented 89% of total revenue at $2.7 billion, up 28% year-over-year, driving the majority of bit and revenue growth.
Margin Improvement and Cost Reductions
Gross margin was 46.1%, an improvement of 770 basis points year-over-year and 220 basis points sequentially. Management cited ~75% incremental gross margin and reported cost-per-terabyte down roughly 10% year-over-year. Q3 gross margin guidance is 47%–48%.
Operating Profitability and Cash Generation
Operating income was just above $1.0 billion (operating margin 33.8%). Operating cash flow was $745 million, capital expenditures were $92 million, and free cash flow was $653 million (free cash flow margin 21.6%).
Balance Sheet and Capital Return Activity
Cash and cash equivalents of $2.0 billion and total liquidity of $3.2 billion. Debt outstanding $4.7 billion with net debt $2.7 billion and net leverage well below 1x. Returned $1.4 billion to shareholders since program launch via buybacks and dividends; repurchased $615 million (3.8M shares) in the quarter and Board approved quarterly dividend of $0.125 per share.
Customer Contract Visibility and LTAs
Firm purchase orders with top seven customers through calendar 2026. Robust commercial agreements/long-term agreements in place with three of top five customers (two through 2027, one through 2028), providing visibility into exabyte demand.
Technology Progress — HAMR, ePMR and UltraSMR
Started qualification of HAMR and next-generation ePMR drives with hyperscale customers (HAMR qualification initiated this month). Nearline portfolio crossed 50% UltraSMR mix; UltraSMR provides +20% capacity vs CMR and +10% vs industry SMR. Launched UltraSMR-enabled JBOD platforms and acquired IP/talent to advance internal laser capabilities for HAMR.
Positive Near-Term Guidance
Q3 revenue guidance of $3.2 billion ± $100 million (midpoint implies ≈40% year-over-year growth). Q3 gross margin guidance of 47%–48% and non-GAAP EPS guidance $2.30 ± $0.15.
WDC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
WDC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Jan 29, 2026 | $278.41 | $250.23 | -10.12% |
Oct 30, 2025 | $138.02 | $150.09 | +8.75% |
Jul 30, 2025 | $71.29 | $78.54 | +10.17% |
Apr 30, 2025 | $40.46 | $43.69 | +7.98% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Western Digital (WDC) report earnings?
Western Digital (WDC) is schdueled to report earning on Apr 23, 2026, After Close (Confirmed).
What is Western Digital (WDC) earnings time?
Western Digital (WDC) earnings time is at Apr 23, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is WDC EPS forecast?
WDC EPS forecast for the fiscal quarter 2026 (Q3) is 2.34.
