Western Digital Corp

Latest Results (10.11.2025):

Western Digital Corp's fiscal fourth quarter 2025 results showcased robust performance with revenue rising 14% sequentially to $2.605 billion and gross margins improving significantly, as the company delivered strong free cash flow while reducing debt by $2.6 billion. The report highlights not only an outstanding quarterly performance but also impressive full-year achievements, including a dramatic turnaround from a GAAP operating loss to a GAAP operating income, complemented by the initiation of a cash dividend and a $2.0 billion share repurchase program.

Revenue & Gross Margin Growth

For fiscal Q4 2025, Western Digital Corp reported GAAP revenue of $2.605 billion, marking a 14% increase from Q3 FY25 and a 30% increase year-over-year, while gross margin improved from 34.8% in Q4 FY24 to 41.0%, indicating enhanced pricing and product mix.

Improved Operating Performance

The GAAP operating income surged to $680 million in Q4 FY25 from a loss of $91 million in Q4 FY24, reflecting strong execution on cost management despite a rise in operating expenses, which were driven by strategic investments in growth areas.

Strong Fiscal Year 2025 Results

Across the full fiscal year 2025, revenue jumped by 51% to $9.52 billion, and GAAP gross margins climbed to 38.8% compared to the prior year's 28.1%. Notably, the GAAP operating income turned positive at $2.334 billion, a significant turnaround from a previous loss, underscoring the company’s strong operational improvements.

Balance Sheet Strength & Future Outlook

Western Digital Corp bolstered its balance sheet by reducing debt by $2.6 billion, initiated a cash dividend of $0.10 per share, and announced a $2.0 billion share repurchase program, demonstrating confidence in long-term cash generation. The company also provided optimistic guidance for fiscal Q1 2026, driven by robust demand in the Cloud market.