Western Digital Corporation (WDC) Q1 FY2027 earnings

Reported results

• Revenue of $4,381 million, up 55% year-over-year; GAAP gross margin of 57.8%; non-GAAP gross margin of 58.1%
• GAAP operating income of $2,046 million (operating margin 46.7%); non-GAAP operating income of $2,153 million (operating margin 49.1%)
• GAAP diluted net income attributable to common shareholders of $1,779 million; GAAP diluted EPS of $4.63; non-GAAP diluted EPS of $4.64
• Cash flow from operating activities of $1,604 million; free cash flow of $1,377 million
• Board declared cash dividend of $0.175 per share, representing a 17% increase

Guidance

• Q2FY27 non-GAAP revenue expected to be $5.1 billion +/- $100 million
• Q2FY27 non-GAAP gross margin guidance of 60% to 61%
• Q2FY27 non-GAAP operating expenses guidance of $400 million to $410 million
• Q2FY27 non-GAAP diluted EPS guidance of $5.80 +/- $0.20
• Q2FY27 expected revenue up 66% to 72% year-over-year
• Q2FY27 non-GAAP tax rate guidance of approximately 17%

Notes

The company provides non-GAAP guidance only because certain information necessary to reconcile to GAAP is difficult to estimate or cannot be allocated with certainty. Non-GAAP measures exclude stock-based compensation expense, business realignment charges, gain on retained interest in Sandisk, costs in connection with debt and equity transactions, and income tax adjustments. Preferred stock was converted in February 2026.

Price and volatility reaction

The stock moved -3.0% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -6.7 vol points across the event (constant-maturity series — not the front-week crush).

Source

The figures above come from the earnings release the company filed with the SEC on 2026-10-22 (8-K, Item 2.02). Read the original filing on sec.gov.