Western Digital (WDC) Q4 2026 earnings summary

Executive summary

• Q4FY26 revenue reached $3.75B, a 44% year-over-year increase, at the high end of guidance, driven by strong demand in cloud and AI workloads.

• Non-GAAP EPS rose 109% year-over-year to $3.56, exceeding guidance; GAAP diluted EPS was $8.21, more than doubling year-over-year.

• Non-GAAP gross margin expanded by 1,310 basis points year-over-year to 54.4%; GAAP gross margin was 54.1%.

• Fiscal year 2026 revenue totaled $12.92B, up 36% year-over-year, with strong performance attributed to innovation and operational excellence.

• Began shipping next-generation ePMR drives with up to 40TB capacity.

Financial highlights

• Q4FY26 revenue increased 44% year-over-year and 12% sequentially to $3.75B.

• Non-GAAP operating income grew 126% year-over-year to $1.66B; GAAP operating income was $1.56B (+130% YoY); operating margin reached 44.2%.

• FY26 non-GAAP EPS was $10.22, up 104% year-over-year; non-GAAP net income was $3.88B (+120% YoY).

• Cash flow from operations for Q4FY26 was $1.39B, up 86% year-over-year; free cash flow for Q4FY26 was $1.28B.

• Free cash flow for FY26 reached $3.51B, up 145% year-over-year.

Outlook and guidance

• Q1FY27 revenue guidance is $4.1B +/- $100M (+42% to 49% YoY); non-GAAP gross margin expected at 55%-56%.

• Non-GAAP operating expenses projected at $390M-$400M; diluted EPS guidance is $4.00 +/- $0.15.

• Diluted weighted average shares expected to be ~388M.

• Board declared a $0.15 per share dividend, payable September 17, 2026.