WDC Q2 2026 Earnings Report — Western Digital Corporation Revenue & Financial Results | Market Cap Arena

Western Digital CorporationWDC

Q2 2026 Earnings

Reported January 29, 2026

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q2 2026	Q1 2026	Q2 2025	QoQ Change	YoY Change
Revenue	$3.0B	$2.8B	$4.3B	7.1%	-29.6%
Op. Income	$963M	$792M	$852M	21.6%	13.0%
Gross Margin	45.7%	43.5%	35.4%	2.2pp	10.4pp
Net Margin	61.1%	41.9%	13.9%	19.1pp	47.2pp
EPS (Diluted)	$4.73	$3.07	$1.63	54.1%	190.2%
Free Cash Flow	$653M	$599M	$287M	9.0%	127.5%

Revenue Flow

Item	Amount
REVENUE	$3.0B
Cost of Revenue	$1.6B
GROSS PROFIT	$1.4B
R&D Expenses	$289M
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$128M
Other Expenses	$0
Operating Expenses	$417M
Cost & Expenses	$2.1B
OPERATING INCOME	$963M
Interest Income	$12M
Interest Expense	$54M
Other Income/Expenses	$999M
INCOME BEFORE TAX	$2.0B
Income Tax Expense	$120M
Net Income from Continuing Ops	$1.8B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.8B
Net Income Deductions	-$4M
BOTTOM LINE NET INCOME	$1.8B
D&A	$92M
EBIT	$2.0B
EBITDA	$2.1B
EPS	$5
EPS Diluted	$5

Income Statement

Item	Amount
REVENUE	$3.0B
Cost of Revenue	$1.6B
GROSS PROFIT	$1.4B
R&D Expenses	$289M
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$128M
Other Expenses	$0
Operating Expenses	$417M
Cost & Expenses	$2.1B
OPERATING INCOME	$963M
Interest Income	$12M
Interest Expense	$54M
Other Income/Expenses	$999M
INCOME BEFORE TAX	$2.0B
Income Tax Expense	$120M
Net Income from Continuing Ops	$1.8B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.8B
Net Income Deductions	-$4M
BOTTOM LINE NET INCOME	$1.8B
D&A	$92M
EBIT	$2.0B
EBITDA	$2.1B
EPS	$5
EPS Diluted	$5

Cash Flow Statement

Item	Amount
Net Income	$1.8B
Depreciation & Amortization	$92M
Stock-Based Compensation	$53M
Deferred Income Tax	$29M
Other Non-Cash Items	-$1.1B
Change in Working Capital	-$176M
OPERATING CASH FLOW	$745M
Capital Expenditure	-$92M
Acquisitions (Net)	$0
Purchases of Investments	$0
Sales/Maturities of Investments	$0
Other Investing Activities	-$24M
NET CASH FROM INVESTING	-$116M
Net Debt Issuance	-$32M
Common Stock Repurchased	-$615M
Common Dividends Paid	-$48M
Other Financing Activities	-$8M
NET CASH FROM FINANCING	-$703M
FREE CASH FLOW	$653M
Net Change in Cash	-$73M

Balance Sheet

Item	Amount
Cash & Equivalents	$2.0B
Short-Term Investments	$0
Net Receivables	$1.7B
Inventory	$1.3B
Other Current Assets	$2.5B
TOTAL CURRENT ASSETS	$7.5B
PP&E (Net)	$2.4B
Goodwill	$4.3B
Intangible Assets	$0
Long-Term Investments	$0
Tax Assets	$0
Other Non-Current Assets	$1.4B
TOTAL NON-CURRENT ASSETS	$8.1B
TOTAL ASSETS	$15.6B
Account Payables	$1.5B
Short-Term Debt	$2.2B
Deferred Revenue	$0
Other Current Liabilities	$771M
TOTAL CURRENT LIABILITIES	$5.2B
Long-Term Debt	$2.4B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$666M
TOTAL NON-CURRENT LIABILITIES	$3.1B
TOTAL LIABILITIES	$8.3B
Common Stock	$3M
Additional Paid-In Capital	$0
Retained Earnings	$3.7B
Treasury Stock	$0
Accum. Other Comp. Income	$18M
Other Equity	$3.4B
TOTAL STOCKHOLDERS' EQUITY	$7.3B
Minority Interest	$0
TOTAL EQUITY	$7.3B
TOTAL LIABILITIES & EQUITY	$15.6B
Total Debt	$4.7B
Net Debt	$2.7B