25.2%
Revenue Growth
WDC's revenue increased by 25.2% year-over-year, driven by strong demand across its product lines.
Source: Source: 10-Q Income Statement, p.1
AI Takeaway
WDC reported a significant increase in Q2 FY2026 net income and EPS, driven by strong revenue growth and improved margins.
Revenue
$3.02B
++25.24% YoY
EPS (Basic)
$5.27
++213.69% YoY
Gross Margin
45.7%
++8.09% YoY
Operating Income
$908M
++62.14% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
WDC's revenue increased by 25.2% year-over-year, driven by strong demand across its product lines.
Source: Source: 10-Q Income Statement, p.1
Gross margin improved by 8.1 percentage points to 45.7%, reflecting better cost management and pricing strategies.
Source: Source: 10-Q Income Statement, p.1
Operating income rose by 62.1%, supported by a reduction in SG&A expenses and increased operational efficiency.
Source: Source: 10-Q Income Statement, p.1
Despite a reduction in long-term debt, WDC's debt to equity ratio remains high at 1.16, which could impact financial flexibility.
Source: Source: 10-Q Balance Sheet, p.1
Unlock 2 more detailed risk analysis
Upgrade to unlockReported EPS of $2.13 versus the $1.94 analyst consensus — a +10.0% beat for Q2 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $3.02B | $2.41B | +25.24% |
Cost of Revenue | $1.64B | $1.5B | +8.99% |
Gross Profit | $1.38B | $907M | +52.15% |
Operating Income | $908M | $560M | +62.14% |
Net Income | $1.84B | $594M | +210.10% |
EPS (Basic) | $5.27 | $1.68 | +213.69% |
EPS (Diluted) | $4.73 | $1.63 | +190.18% |
SG&A Expense | $128M | $132M | -3.03% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $15.61B | $25.46B | -38.67% |
Current Assets | $7.53B | $9.37B | -19.64% |
Total Liabilities | $8.27B | $13.11B | -36.91% |
Current Liabilities | $5.18B | $4.71B | +9.99% |
Stockholders' Equity | $7.11B | $12.12B | -41.31% |
Cash & Equivalents | $1.98B | $2.29B | -13.79% |
Long-Term Debt | $4.66B | $7.37B | -36.80% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $1.42B | $437M | +224.26% |
Investing Cash FlowYTD | $-173M | $78M | -321.79% |
Financing Cash FlowYTD | $-1.38B | $-103M | -1240.78% |
Share BuybacksYTD | $1.17B | $0 | — |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 45.7% | 37.7% | +8.09% |
Operating Margin | 30.1% | 23.2% | +6.85% |
Net Margin | 61.1% | — | — |
ROE | 25.9% | — | — |
ROA | 11.8% | — | — |
Current Ratio | $1.455 | — | — |
Debt to Equity | $1.163 | — | — |
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WDC reported a significant increase in net income and EPS, with EPS (Basic) rising to $5.27, indicating strong performance, though specific estimates are not provided.
Key takeaways include a 25.2% increase in revenue, a 210.1% rise in net income, and improved margins, highlighting strong financial performance.
WDC faces risks from high debt levels, a significant reduction in total assets, and cash flow volatility, which could impact future operations.
WDC's revenue grew by 25.2% to $3.017 billion, driven by strong demand across its product lines.
WDC shows strong profitability with improved margins, but faces challenges from high debt levels and reduced asset base.