Revenue Growth
WDC's revenue increased by 25.2% year-over-year, driven by strong demand across its product lines.
Source: 10-Q Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
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 (Diluted)
$4.73
+190.18% YoY
Gross Margin
45.7%
+8.1 pts YoY
Operating Income
$908M
+62.14% YoY
Source: SEC XBRL
Western Digital (WDC) reported Q2 FY2026 revenue of $3.02B, up 25.2% year over year. Operating margin was 30.1%, up 6.9 points from 23.2% a year earlier. WDC's fiscal Q2 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 3.56 | 3.33 | Beat +7.0% |
| Mar 2026 | 2.72 | 2.41 | Beat +12.7% |
| Dec 2025This filing | 2.13 | 1.94 | Beat +10.0% |
| Sep 2025 | 1.78 | 1.60 | Beat +11.6% |
Adjusted (non-GAAP) EPS of $2.13 versus the $1.94 analyst consensus — a +10.0% beat for Dec 2025. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $4.73.
Compiled by AI from this SEC filing
WDC's revenue increased by 25.2% year-over-year, driven by strong demand across its product lines.
Source: 10-Q Income Statement
Gross margin improved by 8.1 percentage points to 45.7%, reflecting better cost management and pricing strategies.
Source: 10-Q Income Statement
Operating income rose by 62.1%, supported by a reduction in SG&A expenses and increased operational efficiency.
Source: 10-Q Income Statement
Compiled by AI from this SEC filing · 1 high, 2 medium, 0 low
Despite a reduction in long-term debt, WDC's debt to equity ratio remains high at 1.16, which could impact financial flexibility.
Source: 10-Q Balance Sheet
Total assets decreased by 38.7%, which may affect the company's ability to leverage its balance sheet for future growth.
Source: 10-Q Balance Sheet
Negative investing and financing cash flows indicate potential volatility in cash management strategies.
Source: 10-Q Cash Flow
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 3.02 $B | 2.41 $B | +25.24% |
Cost of Revenue $B | 1.64 $B | 1.50 $B | +8.99% |
Gross Profit $B | 1.38 $B | 0.91 $B | +52.15% |
Operating Income $M | 908.00 $M | 560.00 $M | +62.14% |
Net Income $B | 1.84 $B | 0.59 $B | +210.10% |
EPS (Basic) $ | 5.27 $ | 1.68 $ | +213.69% |
EPS (Diluted) $ | 4.73 $ | 1.63 $ | +190.18% |
SG&A Expense $M | 128.00 $M | 132.00 $M | -3.03% |
Answers draw on this SEC filing and the data on this page
WDC reported a significant increase in net income and EPS for Q3 FY2026, driven by strong revenue growth and improved margins, despite a reduction in total assets and cash reserves.
Western Digital's FY2026 10-K shows revenue up 36% and gross margin near 49% on cloud HDD strength, while net income was lifted by a $6.5B non-operating Sandisk gain and management used cash to reduce debt and repurchase shares.
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