| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 3.0K | 7.1% | 29.6% |
| Total Income | 3.0K | 7.1% | 29.6% |
| Expenditure | 2.1K | 4.1% | 38.6% |
| PBT | 2.0K | 46.8% | 164.8% |
| Net Profit | 1.8K | 55.8% | 210.1% |
| OPM | 30.10% | 1.99pp | 10.21pp |
| NPM | 61.05% | 19.11pp | 47.19pp |
| EPS | 5.27 | 57.8% | 213.7% |
Western Digital Reports Q2 2026 Revenue Up 25% YoY to $3.02 Billion
04 May 2026 · 4 May, 1:35 am
Summary
Western Digital reported strong financial results for the fiscal second quarter of 2026, with revenue reaching $3.02 billion, a 25% increase year over year. The company's GAAP gross margin was 45.7%, and the GAAP diluted EPS was $4.73. Western Digital anticipates continued growth in the next quarter, projecting revenue to be up approximately 40% year over year. The Board of Directors also declared a cash dividend of $0.125 per share.
Key Highlights
- 1
Western Digital's revenue for Q2 FY26 was $3.02 billion, an increase of 25% year over year.
- 2
The GAAP gross margin for Q2 FY26 was 45.7%, while the non-GAAP gross margin was 46.1%.
- 3
GAAP diluted EPS for Q2 FY26 was $4.73, and non-GAAP diluted EPS was $2.13.
- 4
Cash flow from operations for Q2 FY26 was $745 million, with a free cash flow of $653 million.
- 5
The company expects Q3 FY26 revenue to increase by approximately 40% year over year at the mid-point.
- 6
Western Digital's Board of Directors declared a cash dividend of $0.125 per share.
Management Comments
Irving Tan
Western Digital’s strong performance this quarter reflects our disciplined execution to meet demand in the AI-driven data economy, and the confidence our customers place in our ability to deliver reliable, high-capacity HDDs at scale. In our fiscal second quarter, we delivered strong revenue growth and gross margin expansion. During the quarter, free cash flow generation continued to be strong, and we returned over 100% of our free cash flow to shareholders in the form of share repurchases and dividend payments.”1
Kris Sennesael
Our business continues to strengthen. We expect strong revenue growth and improved profitability driven by continued data center demand and by the adoption of our high-capacity drives. For our fiscal third quarter of 2026, at the mid-point of the ranges provided in the table below, we expect revenues of $3.2 billion, non-GAAP gross margin of 47.5%, with non-GAAP EPS of $2.30.”
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