The company reported $4.38 billion in revenue for its first quarter of fiscal 2027, ending 2 October 2026. Revenue rose 17 per cent from the previous quarter.
While PC manufacturers struggle to persuade customers to swallow rising component prices, WD appears considerably happier on the receiving end of the invoice.
Net income attributable to common shareholders rose 54 per cent to $1.78 billion from a year earlier. GAAP diluted earnings per share rose 51 per cent to $4.63.
Adjusted earnings per share climbed 161 per cent to $4.64. The distinction matters because the adjusted figures exclude costs and gains that affect the statutory accounts.
Western Digital chief executive Irving Tan said: “Fiscal 2027 is off to a strong start, with results exceeding expectations, driven by robust customer demand and disciplined execution.”
The company’s GAAP gross margin reached 57.8 per cent, compared with 43.5 per cent a year earlier. Its adjusted gross margin increased to 58.1 per cent from 43.9 per cent.
Adjusted operating income rose 152 per cent to $2.15 billion, with the operating margin reaching 49.1 per cent. Selling storage has become a remarkably effective way of storing money.
Cash generation strengthened. Operating cash flow reached $1.60 billion, while free cash flow totalled $1.38 billion, compared with $599 million a year earlier.
Tan said WD was advancing through technology transitions to meet growing storage demand, broaden its customer base, and gain greater visibility into future orders.
Western Digital chief financial officer Kris Sennesael said: “Our first quarter results demonstrate the continued momentum in our business, with robust exabyte growth and improved pricing driving another quarter of strong financial performance.”
The next-quarter forecast suggests management expects the good times to continue. WD projects revenue of $5.1 billion, plus or minus $100 million, representing annual growth of between 66 and 72 per cent.
Its adjusted gross margin forecast is between 60 and 61 per cent. Adjusted earnings per share are expected to reach $5.80, plus or minus $0.20.
Those projections remain forecasts, although they give suppliers elsewhere in the hardware industry something suitably irritating to read with their morning coffee.
WD raised its quarterly dividend by 17 per cent to $0.175 per share. The payment is due on 17 December 2026 to shareholders registered at the close of business on 4 December.
