Strong Revenue and Earnings Growth
Western Digital delivered revenue of $2.8 billion, up 27% year-over-year, and non-GAAP earnings per share of $1.78, both exceeding the high end of guidance.
Increased Shareholder Returns
The company significantly increased share repurchases to $553 million and announced a 25% increase in dividend per share to $0.125.
AI-Driven Demand
The rapid adoption of AI is driving robust demand for higher capacity drives, with top customers providing purchase orders extending through 2026 and 2027.
Strong Free Cash Flow Generation
Free cash flow for the quarter was $599 million, reflecting a strong free cash flow margin above 20%.
Positive Gross Margin Performance
Gross margin was 43.9%, up 660 basis points year-over-year, driven by a mix shift towards higher capacity drives and cost control.