| Metric | Value ($ M) | Q2 FY26 | Q3 FY25 |
|---|---|---|---|
| Revenue | 3.3K | 10.6% | 45.5% |
| Total Income | 3.3K | 10.6% | 45.5% |
| Expenditure | 2.1K | 1.8% | 40.0% |
| PBT | 3.4K | 71.2% | 4439.2% |
| Net Profit | 3.2K | 74.0% | 516.4% |
| OPM | 35.66% | 5.57pp | 2.53pp |
| NPM | 96.04% | 34.99pp | 73.38pp |
| EPS | 9.26 | 75.7% | 534.3% |
Western Digital Reports Q3 FY26 Revenue Up 45% Y/Y to $3.34 Billion
03 May 2026 · 3 May, 6:09 pm
Summary
Western Digital reported strong Q3FY26 results, with revenue reaching $3.34 billion, a 45% increase year-over-year. The company's GAAP gross margin was 50.2%, and GAAP diluted EPS was $8.20. Looking ahead to Q4FY26, Western Digital expects revenue to be up 36% to 44% year-over-year and anticipates a non-GAAP gross margin between 51% and 52%. The Board of Directors also declared a cash dividend of $0.15 per share of the company’s common stock.
Key Highlights
- 1
Western Digital reported revenue of $3.34 billion, up 45% year-over-year for Q3FY26.
- 2
The company's GAAP gross margin was 50.2%, while the non-GAAP gross margin reached 50.5% in Q3FY26.
- 3
GAAP diluted EPS was $8.20, and non-GAAP diluted EPS was $2.72 for the third fiscal quarter of 2026.
- 4
Western Digital generated $1.12 billion in cash flow from operations and $978 million in free cash flow during Q3FY26.
- 5
The company expects Q4FY26 revenue to increase by 36% to 44% year-over-year.
- 6
For Q4FY26, Western Digital anticipates a non-GAAP gross margin in the range of 51% to 52%.
Management Comments
Irving Tan
WD started calendar year 2026 with great execution, driving strong sequential and year-over-year revenue growth in all our end markets, while expanding gross and operating margins. Gross margin exceeded 50%, reflecting our continued delivery of innovation across an expanding set of customers. Given our confidence in the durability of our business, we are also announcing a 20% increase in the quarterly cash dividend on the company’s common stock to $0.15 per share. The demand drivers are clear: Virtually every AI workload, from training, inference, agentic AI to physical AI, creates data that is stored persistently and cost-efficiently on HDDs.
Kris Sennesael
Our business continues to strengthen with visibility extending as we continue to build momentum across all our end markets, driven by innovation, strong customer engagements, and disciplined execution. We have also strengthened our balance sheet while deploying our robust free cash flow to drive shareholder returns. For our fiscal fourth quarter of 2026, at the mid-point of the ranges provided in the table below, we expect revenues of $3.65 billion, non-GAAP gross margin of 51.5%, with non-GAAP EPS of $3.25.
Informational and educational content only. Not investment advice.