Western Digital: Fiscal 2Q26 Financial Results

Fiscal Q2 FY26 Highlights:

• Revenue of $3.02 billion, up 25% YoY
• GAAP gross margin of 45.7%; non-GAAP gross margin of 46.1%
• GAAP diluted EPS of $4.73; non-GAAP diluted EPS of $2.13
• Cash flow from operations of $745 million; free cash flow of $653 million
• Q3FY26 revenue expected to be up approximately 40% YoY at mid-point

Western Digital Corp. reported fiscal second quarter 2026 financial results for the period ended January 2, 2026.

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“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,” said Irving Tan, CEO, Western Digital. “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.”

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Business Outlook for Fiscal Third Quarter of 2026
“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,” said Kris Sennesael, CFO, Western Digital.

Dividend
Western Digital’s Board of Directors declared a cash dividend of $0.125 per share of the company’s common stock, which will be paid on March 18, 2026 to stockholders of record as of the close of business on March 5, 2026.