$WDC · WESTERN DIGITAL CORP
Western Digital reported Q1 FY2027 results with revenue of $4.38B (+55% YoY), GAAP gross margin of 57.8%, and GAAP diluted EPS of $4.63. Non-GAAP diluted EPS was $4.64, up 161% YoY. Free cash flow reached $1.38B. The company guided Q2 FY2027 revenue to $5.1B ± $100M, non-GAAP gross margin of 60-61%, and non-GAAP EPS of $5.80 ± $0.20. The board also raised the quarterly dividend 17% to $0.175 per share.
- Revenue of $4.38B, up 55% YoY and 17% QoQ.
- GAAP diluted EPS of $4.63; non-GAAP diluted EPS of $4.64, up 161% YoY.
- GAAP gross margin expanded to 57.8% from 43.5% a year ago.
- Free cash flow of $1.38B, up from $599M in the year-ago quarter.
- Q2 FY2027 guidance: revenue ~$5.1B, non-GAAP gross margin 60-61%, non-GAAP EPS $5.80 ± $0.20.
Extended-hours trading shows WDC down 2.83% to $344.17 vs the regular close of $354.19, despite strong Q1 results and Q2 guidance implying ~16% sequential revenue growth. The selloff may reflect profit-taking after a massive run or disappointment that the beat wasn't larger relative to elevated expectations for a $132.58B market-cap name.
Western Digital is riding an extraordinary AI-driven storage supercycle — 55% revenue growth, 57.8% GAAP gross margins, and guidance for further acceleration — yet the stock is selling off after-hours
Western Digital's 55% YoY revenue growth and 57.8% GAAP gross margin underscore the AI-driven storage boom benefiting HDD and NAND suppliers. The Q2 guide for 60.5% non-GAAP gross margin at midpoint signals pricing power is still accelerating, consistent with tight NAND supply dynamics seen across W
Concentration of revenue in the Cloud end market and among top customers; dependence on a limited number of qualified suppliers; volatility in demand and competitive pricing; risks from technology transitions and new product introductions.
Get filings like this before the market reacts.
Real-time SEC filing alerts, AI summaries, and a free daily digest — plus portfolio tracking that ties filings to your positions.