Why it matters
- Western Digital said Thursday, Oct. 22, that revenue for its fiscal first quarter, ended Oct. 2, rose 55% to $4.38 billion. Non-GAAP diluted EPS rose 161% to $4.64 and GAAP diluted EPS rose 51% to $4.63.
- The hard-drive maker forecast fiscal second-quarter revenue of $5.1 billion, plus or minus $100 million, up 66% to 72% from a year earlier, and non-GAAP EPS of $5.80, plus or minus 20 cents. It raised its quarterly dividend 17% to 17.5 cents.
- Western Digital shares traded at about $327.29 at 4:53 p.m. ET, down about 7.6% from Thursday's close of $354.19, according to Yahoo Finance data. The stock had already fallen 6.4% in the regular session.
Western Digital shares fell about 8% in after-hours trading Thursday, Oct. 22, even though the hard-drive maker reported fiscal first-quarter revenue of $4.38 billion, up 55% from a year earlier, and forecast faster growth this quarter. The stock traded at about $327.29 at 4:53 p.m. ET, down from its regular-session close of $354.19, according to Yahoo Finance data.
Non-GAAP diluted earnings per share rose 161% to $4.64, the company said in its earnings release, filed with the Securities and Exchange Commission at about 4:04 p.m. ET. Nasdaq's earnings calendar had listed a consensus EPS forecast of $3.99 for the quarter, based on four estimates. GAAP diluted EPS rose 51% to $4.63.
How did Western Digital stock react to earnings?
It rose at first, then reversed. Shares climbed as high as about $369.40 shortly after the 4 p.m. ET close, then slid during and after the company's 4:30 p.m. ET conference call, dropping to about $326 by 4:45 p.m. ET, Yahoo Finance data show. After-hours prices can change before Friday's open.
The decline came on top of a 6.4% drop in Thursday's regular session, when the stock fell from Wednesday's close of $378.51 to $354.19, according to Yahoo Finance.
Western Digital first-quarter fiscal 2027 results at a glance
| Measure | Q1 FY2027 | Q1 FY2026 | Change |
|---|---|---|---|
| Revenue | $4.38 billion | $2.82 billion | +55% |
| GAAP gross margin | 57.8% | 43.5% | +14.3 pts |
| Non-GAAP gross margin | 58.1% | 43.9% | +14.2 pts |
| GAAP operating income | $2.05 billion | $792 million | +158% |
| Non-GAAP operating margin | 49.1% | 30.4% | +18.7 pts |
| Net income | $1.78 billion | $1.18 billion | +51% |
| GAAP diluted EPS | $4.63 | $3.07 | +51% |
| Non-GAAP diluted EPS | $4.64 | $1.78 | +161% |
| Free cash flow | $1.38 billion | $599 million | +130% |
Source: Western Digital fiscal first-quarter 2027 earnings release (Exhibit 99.1 to Form 8-K).
Revenue also rose 17% from the fiscal fourth quarter's $3.75 billion. Chief Executive Irving Tan said in the release that results exceeded expectations, "driven by robust customer demand and disciplined execution." Chief Financial Officer Kris Sennesael cited "robust exabyte growth and improved pricing."
Cash flow from operations was $1.60 billion. The company spent $1.00 billion on share buybacks and $56 million on dividends during the quarter, its cash flow statement shows.
What is Western Digital's outlook?
For the fiscal second quarter, Western Digital forecast revenue of $5.1 billion, plus or minus $100 million, which it said would be up 66% to 72% from a year earlier. It expects a non-GAAP gross margin of 60% to 61% and non-GAAP EPS of $5.80, plus or minus 20 cents.
| Q2 fiscal 2027 forecast (non-GAAP) | Oct. 22 release |
|---|---|
| Revenue | $5.1 billion, +/- $100 million |
| Gross margin | 60% to 61% |
| Operating expenses | $400 million to $410 million |
| Diluted EPS | $5.80, +/- $0.20 |
| Diluted shares | About 380 million |
The board declared a quarterly dividend of 17.5 cents a share, up 17%, payable Dec. 17 to holders of record on Dec. 4.
Earlier this month Western Digital and rival Seagate fell after a report that Toshiba plans to double hard-drive output. For more on AI spending by big cloud customers, read about Meta's third-quarter results and capital spending forecast. Follow more earnings news in our companies section.
Sources
- Western Digital, Fiscal first-quarter 2027 earnings release (Exhibit 99.1 to Form 8-K, Oct. 22, 2026)
- SEC EDGAR, Western Digital Form 8-K filing, Oct. 22, 2026
- Nasdaq, Earnings calendar for Oct. 22, 2026
- Yahoo Finance, chart data for Western Digital (WDC), after hours and daily closes
