Western Digital (WDC)
NASDAQ:WDC
Want to see WDC full AI Analyst Report?
Earnings Data
Report Date
Aug 05, 2026After Close (Confirmed)
Period Ending
2026 (Q4)Consensus EPS Forecast
3.27Last Year’s EPS
1.66Same Quarter Last Year
Strong Buy
Based on 16 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed strong operational and financial momentum: high revenue growth (+45% YoY), doubled EPS (~97% YoY), robust margin expansion (gross margin 50.5%, +1,040 bps YoY), large exabyte shipment growth (+34% YoY), strong free cash flow ($978M, 29% margin), and a clear product roadmap with improving customer qualifications and UltraSMR adoption. Key risks noted include concentration in cloud revenue (89%), ongoing HAMR qualification and ramp timing, some remaining convertible debt and SanDisk shares to monetize, and near-term R&D-driven opex increases. Overall, the positives materially outweigh the challenges.Company Guidance
Strong Revenue Growth
Revenue of $3.3 billion in fiscal Q3 2026, up 45% year over year; results (revenue, gross margin, EPS) came in above the high end of guidance.
Material EPS and Profitability Expansion
Non-GAAP diluted EPS of $2.72, up ~97% year over year; operating income of $1.3 billion, up 106% YoY; operating margin of 38.6%, up 1,260 basis points YoY.
High Margins and Margin Momentum
Gross margin expanded to 50.5%, up 1,040 basis points YoY and 440 basis points sequentially; Q4 guidance implies further expansion to 51%–52%.
Significant Demand and Capacity Delivery
Shipped 222 exabytes in Q3, up 34% YoY, including >4.1 million drives (118 exabytes) of latest-generation EPMR (up to 32 TB capacity points).
Cloud Revenue Leadership
Cloud represented 89% of total revenue ($3.0 billion), up 48% YoY; consumer $186 million (6%, +24% YoY) and client $179 million (5%, +31% YoY) also grew strongly.
Cash Generation, Debt Reduction, and Capital Returns
Operating cash flow $1.1 billion; free cash flow $978 million (29% FCF margin); monetized 5.8M SanDisk shares to reduce debt by $3.1 billion; ended quarter with $2.0 billion cash and net positive cash position of $450 million; repurchased $752 million of stock and increased dividend 20% to $0.15/quarter.
Technology Roadmap and Customer Adoption
Roadmap includes 44 TB HAMR and 40 TB EPMR in qualification; 40 TB EPMR on track for volume production in H2 CY2026; UltraSMR adoption by three largest customers (two are covering nearly all exabyte demand with UltraSMR); HAMR qualification with four customers; high-bandwidth drives sampling with hyperscalers.
Pricing and Cost Improvements
Average pricing up ~9% YoY; cost per exabyte down roughly 10% YoY; company cites incremental gross margins in the +70% to +75% range on YoY/Qtly improvements.
Credit Upgrade and Balance Sheet Strength
Received S&P and Fitch upgrades to investment-grade; only $1.6 billion of convertible debt remaining after debt reduction actions.
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 |
|---|---|---|---|
Apr 30, 2026 | $434.52 | $431.52 | -0.69% |
Jan 29, 2026 | $278.28 | $250.11 | -10.12% |
Oct 30, 2025 | $137.95 | $150.02 | +8.75% |
Jul 30, 2025 | $71.25 | $78.50 | +10.16% |
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 Aug 05, 2026, After Close (Confirmed).
What is Western Digital (WDC) earnings time?
Western Digital (WDC) earnings time is at Aug 05, 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 (Q4) is 3.27.
