WESTERN DIGITAL CORP (WDC) Form 10-Q — Oct 22, 2026
Western Digital reported Q1 FY27 revenue of $4,381M, up 55% year over year, with net income of $1,779M and diluted EPS of $4.63 versus $3.07 a year ago. Cloud revenue of $3,868M (88% of total) grew 54% on a 20%+ increase in exabytes shipped and roughly 25% higher ASP per exabyte, fueled by AI-driven storage demand. The balance sheet transformed during the quarter: $710M of 3.00% convertible notes were nearly eliminated via exchanges and conversions, leaving just $141M outstanding with $14.3B of conversion premium settled largely in stock (including 9.3M shares against a $5.09B premium), and remaining notes were called for November 16, 2026 redemption.
Key figures
- Eps
- $4.63 diluted ($4.86 basic)
- Revenue
- 4381
- Net Income
- 1779
- Total Debt
- 791
- Revenue Yoy
- 55%
- Total Assets
- 14239
- Cash Position
- 1314
- Shares Outstanding
- 374323269
- Capex
- $227M
- Gross profit
- $2,534M (+107% YoY)
- Cloud revenue
- $3,868M (+54% YoY, 88% of total)
- Client revenue
- $320M (+119% YoY)
- Consumer revenue
- $193M (+19% YoY)
- Conversion price
- $37.70 per share
- Operating income
- $2,046M (+158% YoY)
- Dividend declared
- $0.175/share payable Dec 17, 2026
- Share repurchases
- $1.00 billion (2.0M shares)
- Revolver available
- $600M
- Operating cash flow
- $1,604M vs $672M prior year
- Revolver outstanding
- $650M
- Dividend prior quarter
- $0.15/share ($56M)
- Convertible notes outstanding
- $141M principal (down from $710M)
- Buyback authorization remaining
- $2.26 billion
AI analysis
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