WDC Q1 2026 Earnings Report — Western Digital Corporation Revenue & Financial Results | Market Cap Arena

Western Digital CorporationWDC

Q1 2026 Earnings

Reported October 30, 2025

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q1 2026	Q4 2025	Q1 2025	QoQ Change	YoY Change
Revenue	$2.8B	—	$2.2B	—	27.4%
Op. Income	$792M	—	$340M	—	132.9%
Gross Margin	43.5%	—	36.4%	—	7.1pp
Net Margin	41.9%	—	22.3%	—	19.7pp
EPS (Diluted)	$3.07	—	$1.35	—	127.4%
Free Cash Flow	$599M	—	-$62M	—	1066.1%

Revenue Flow

Item	Amount
REVENUE	$2.8B
Cost of Revenue	$1.6B
GROSS PROFIT	$1.2B
R&D Expenses	$294M
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$138M
Other Expenses	$3M
Operating Expenses	$435M
Cost & Expenses	$2.0B
OPERATING INCOME	$792M
Interest Income	$545M
Interest Expense	$59M
Other Income/Expenses	$545M
INCOME BEFORE TAX	$1.3B
Income Tax Expense	$155M
Net Income from Continuing Ops	$1.2B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.2B
Net Income Deductions	-$2M
BOTTOM LINE NET INCOME	$1.2B
D&A	$88M
EBIT	$1.4B
EBITDA	$1.5B
EPS	$3
EPS Diluted	$3

Income Statement

Item	Amount
REVENUE	$2.8B
Cost of Revenue	$1.6B
GROSS PROFIT	$1.2B
R&D Expenses	$294M
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$138M
Other Expenses	$3M
Operating Expenses	$435M
Cost & Expenses	$2.0B
OPERATING INCOME	$792M
Interest Income	$545M
Interest Expense	$59M
Other Income/Expenses	$545M
INCOME BEFORE TAX	$1.3B
Income Tax Expense	$155M
Net Income from Continuing Ops	$1.2B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.2B
Net Income Deductions	-$2M
BOTTOM LINE NET INCOME	$1.2B
D&A	$88M
EBIT	$1.4B
EBITDA	$1.5B
EPS	$3
EPS Diluted	$3

Cash Flow Statement

Item	Amount
Net Income	$1.2B
Depreciation & Amortization	$88M
Stock-Based Compensation	$53M
Deferred Income Tax	$55M
Other Non-Cash Items	-$607M
Change in Working Capital	-$99M
OPERATING CASH FLOW	$672M
Capital Expenditure	-$73M
Acquisitions (Net)	$0
Purchases of Investments	$0
Sales/Maturities of Investments	$0
Other Investing Activities	$16M
NET CASH FROM INVESTING	-$57M
Net Debt Issuance	-$31M
Common Stock Repurchased	-$553M
Common Dividends Paid	-$39M
Other Financing Activities	-$55M
NET CASH FROM FINANCING	-$678M
FREE CASH FLOW	$599M
Net Change in Cash	-$66M

Balance Sheet

Item	Amount
Cash & Equivalents	$2.0B
Short-Term Investments	$965M
Net Receivables	$1.4B
Inventory	$1.4B
Other Current Assets	$514M
TOTAL CURRENT ASSETS	$6.3B
PP&E (Net)	$2.3B
Goodwill	$4.3B
Intangible Assets	$0
Long-Term Investments	$0
Tax Assets	$953M
Other Non-Current Assets	$467M
TOTAL NON-CURRENT ASSETS	$8.1B
TOTAL ASSETS	$14.4B
Account Payables	$1.5B
Short-Term Debt	$2.3B
Deferred Revenue	$0
Other Current Liabilities	$674M
TOTAL CURRENT LIABILITIES	$5.2B
Long-Term Debt	$2.7B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$193M
Other Non-Current Liabilities	$316M
TOTAL NON-CURRENT LIABILITIES	$3.3B
TOTAL LIABILITIES	$8.5B
Common Stock	$3M
Additional Paid-In Capital	$4.5B
Retained Earnings	$1.9B
Treasury Stock	-$583M
Accum. Other Comp. Income	$14M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$5.9B
Minority Interest	$0
TOTAL EQUITY	$5.9B
TOTAL LIABILITIES & EQUITY	$14.4B
Total Debt	$5.0B
Net Debt	$3.0B