The massive revenue and margin beat, combined with guidance for continued acceleration (66-72% YoY revenue growth in Q2), signals that the AI-driven HDD demand cycle is still accelerating. Watch for any tariff or trade policy commentary on the earnings call that could impact the 60%+ gross margin trajectory.
Price Chart
Executive Summary
Western Digital reported Q1FY27 results that significantly exceeded expectations, with revenue of $4.38B (+55% YoY) and non-GAAP EPS of $4.64 (+161% YoY). The company guided Q2FY27 revenue to $5.1B (+66-72% YoY) and non-GAAP EPS to $5.80, well above consensus, driven by robust AI-driven HDD demand and pricing. The dividend was raised 17% to $0.175/share.
Key Financial Metrics
Key Facts
- Q1FY27 revenue $4.38B, up 55% YoY and 17% QoQ
- Non-GAAP gross margin 58.1%, up 1420 bps YoY
- Non-GAAP EPS $4.64, up 161% YoY, vs consensus $5.87 (note: Street consensus was $4.43 per Nasdaq reference)
- Q2FY27 guidance: revenue ~$5.1B (midpoint), non-GAAP EPS $5.80, non-GAAP gross margin 60.5%
- Cash flow from operations $1.60B, free cash flow $1.38B
- Quarterly dividend raised 17% to $0.175/share
- Repurchased $1.001B of common stock in the quarter
Financial Impact
Revenue beat consensus by ~$0.25B (4.9%) and non-GAAP EPS of $4.64 exceeded the Nasdaq Street consensus of $4.43 by 4.7%. Guidance for Q2FY27 implies ~$5.1B revenue vs $4.44 Street EPS consensus.
Risk Factors
- Concentration of revenue in Cloud end market and top customers
- Potential impact of tariffs or trade restrictions on supply chain
- Cyclical nature of HDD demand and pricing
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-066882 |
| Document: wdc-20261022.htm | 0001628280-26-066882 |
| Document: 0001628280-26-066882-index-headers.html | 0001628280-26-066882 |
| Document: 0001628280-26-066882-index.html | 0001628280-26-066882 |
| Document: 0001628280-26-066882.txt | 0001628280-26-066882 |
| 8-K Data (Synthetic) | 0001628280-26-066882 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | 8-K | $343.67 $356.13 | ▲ +3.63% | ▲ +2.92% | $356.13 (+3.63%) |
Oct 20, 2026 6d ago | Institutional Cluster | $378.51 $354.19 | ▼ −6.43% | ▼ −5.24% | $356.13 (−5.91%) |
Oct 12, 2026 14d ago | Institutional Cluster | $386.94 $380.71 | ▼ −1.61% | ▼ −1.60% | $356.13 (−7.96%) |
Oct 5, 2026 21d ago | DEFA14A | $411.04 $405.42 | ▼ −1.37% | ▼ −1.13% | $356.13 (−13.36%) |
Oct 5, 2026 21d ago | DEF 14A | $411.04 $405.42 | ▼ −1.37% | ▼ −1.13% | $356.13 (−13.36%) |
Sep 14, 2026 6w ago | 8-K | $426.94 $411.96 | ▼ −3.51% | ▼ −3.05% | $356.13 (−16.59%) |
Sep 2, 2026 7w ago | Insider Cluster | $441.57 $467.46 | ▼ −5.86% | ▼ −6.25% | $356.13 (+19.35%) |
Sep 2, 2026 7w ago | Insider Cluster | $441.57 $467.46 | ▲ +5.86% | ▲ +6.25% | $356.13 (−19.35%) |
Sep 2, 2026 7w ago | Insider Cluster | $441.57 $467.46 | ▲ +5.86% | ▲ +6.25% | $356.13 (−19.35%) |
Aug 26, 2026 8w ago | 8-K | $468.88 $462.00 | ▼ −1.47% | ▼ −2.12% | $356.13 (−24.05%) |
US Market Status
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