Revenue Growth
WDC achieved a 45.5% year-over-year increase in revenue, reaching $3.34 billion, primarily 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 net income and EPS for Q3 FY2026, driven by strong revenue growth and improved margins, despite a reduction in total assets and cash reserves.
Revenue
$3.34B
+45.47% YoY
EPS (Diluted)
$8.20
+477.46% YoY
Gross Margin
50.2%
+10.5 pts YoY
Operating Income
$1.19B
+56.58% YoY
Source: SEC XBRL
Western Digital (WDC) reported Q3 FY2026 revenue of $3.34B, up 45.5% year over year. Operating margin was 35.7%, up 2.6 points from 33.1% a year earlier. WDC's fiscal Q3 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 3.56 | 3.33 | Beat +7.0% |
| Mar 2026This filing | 2.72 | 2.41 | Beat +12.7% |
| Dec 2025 | 2.13 | 1.94 | Beat +10.0% |
| Sep 2025 | 1.78 | 1.60 | Beat +11.6% |
Adjusted (non-GAAP) EPS of $2.72 versus the $2.41 analyst consensus — a +12.7% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $8.20.
Compiled by AI from this SEC filing
WDC achieved a 45.5% year-over-year increase in revenue, reaching $3.34 billion, primarily driven by strong demand across its product lines.
Source: 10-Q Income Statement
Gross margin improved by 10.5 percentage points to 50.2%, reflecting better cost management and higher sales volume.
Source: 10-Q Income Statement
The company significantly reduced its long-term debt by 78.4%, enhancing its financial stability.
Source: 10-Q Balance Sheet
Compiled by AI from this SEC filing · 0 high, 3 medium, 0 low
WDC experienced a significant decline in cash and equivalents by 41%, which could impact its liquidity position if cash flow volatility continues.
Source: 10-Q Balance Sheet
Total assets decreased by 8.1%, which may affect the company's ability to leverage its asset base for future growth.
Source: 10-Q Balance Sheet
The company reported a negative investing cash flow of $318 million, a 244.5% decrease year-over-year, indicating potential challenges in capital investments.
Source: 10-Q Cash Flow Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 3.34 $B | 2.29 $B | +45.47% |
Cost of Revenue $B | 1.66 $B | 1.38 $B | +20.19% |
Gross Profit $B | 1.68 $B | 0.91 $B | +83.77% |
Operating Income $B | 1.19 $B | 0.76 $B | +56.58% |
Net Income $B | 3.21 $B | 0.52 $B | +516.35% |
EPS (Basic) $ | 9.26 $ | 1.46 $ | +534.25% |
EPS (Diluted) $ | 8.20 $ | 1.42 $ | +477.46% |
SG&A Expense $M | 147.00 $M | 108.00 $M | +36.11% |
Answers draw on this SEC filing and the data on this page
WDC reported a significant increase in Q2 FY2026 net income and EPS, driven by strong revenue growth and improved margins.
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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