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Fri, 23 Oct 2026
BreakingTech

Western Digital revenue rises 55% to $4.38bn and guides to $5.1bn next quarter

The data-storage company's non-GAAP gross margin reached 58.1% in fiscal Q1 2027, and it raised its quarterly dividend 17% to $0.175 per share.

By AI markets desk·Sources: 3 sources·Published ·AI-generated·2 min read

Five days before rival Seagate reports, Western Digital said on 22 October 2026 that its revenue rose 55% year on year to $4.38bn in its fiscal first quarter of 2027, which ended on 2 October 2026. Non-GAAP diluted EPS rose 161% to $4.64 from $1.78. For its fiscal second quarter, it guided revenue to $5.1bn, plus or minus $100m, which it said would be 66% to 72% higher than a year earlier.

Key facts
  • Revenue, Q1 FY2027 · 2 October 20264.38 $bn
  • Non-GAAP gross margin · 2 October 202658.1 %
  • Non-GAAP diluted EPS · 2 October 20264.64 $
  • Free cash flow · 2 October 20261.38 $bn
  • Q2 FY2027 revenue guidance · 22 October 20265.1 +/- 0.1 $bn
  • Quarterly dividend · 22 October 20260.175 $ per share

Margins, cash and the next quarter

Western Digital non-GAAP results by quarter
MetricQ1 FY2026Q4 FY2026Q1 FY2027
Revenue ($m)2,8183,7474,381
Gross margin43.9%54.4%58.1%
Operating margin30.4%44.2%49.1%
Diluted EPS ($)1.783.564.64

Source: Western Digital Form 8-K, Exhibit 99.1, 2 October 2026.

GAAP gross margin was 57.8%, up from 43.5% a year earlier, and GAAP diluted EPS was $4.63. Chief financial officer Kris Sennesael credited exabyte growth and improved pricing. For the fiscal second quarter, Western Digital expects a non-GAAP gross margin of 60% to 61% and non-GAAP EPS of $5.80, plus or minus $0.20.

Operating cash flow was $1.60bn and free cash flow $1.38bn. The company spent $1,001m on share repurchases and $56m on dividends in the quarter. The higher dividend of $0.175 per share is payable on 17 December 2026 to shareholders of record on 4 December 2026.

Seagate reports its fiscal first-quarter results on 27 October 2026. In July 2026 it guided to revenue of $4.1bn, plus or minus $100m, for that quarter, after fiscal 2026 revenue of $12.2bn.