Western Digital stock: Q1 revenue jumps 55%, outlook strengthens

Western Digital reported a strong fiscal first quarter on October 22, with revenue growth, wider margins and higher shareholder returns shaping the outlook for the storage specialist. The company said fiscal first-quarter revenue reached USD 4.381 billion for the period ended October 2, 2026, up 55 percent from the year-earlier quarter. The results and guidance were published in Western Digital's October 22 release.

Margins and cash flow accelerate

GAAP gross margin increased to 57.8 percent from 43.5 percent a year earlier. On the company's non-GAAP measure, gross margin reached 58.1 percent, while non-GAAP operating margin widened to 49.1 percent from 30.4 percent.

GAAP operating income rose 158 percent year over year to USD 2.046 billion. Non-GAAP diluted earnings per share increased 161 percent to USD 4.64, compared with USD 1.78 in the prior-year quarter. Operating cash flow was USD 1.60 billion, and free cash flow reached USD 1.38 billion.

The company attributed the performance to robust exabyte growth and improved pricing. Management said first-quarter shipments reached 248 exabytes, up 22 percent year over year and 8 percent sequentially, according to the earnings-call discussion.

Guidance raises the bar

For fiscal second-quarter 2027, Western Digital expects revenue of USD 5.1 billion plus or minus USD 100 million. At the midpoint, that implies 69 percent year-over-year growth. Non-GAAP gross margin is forecast at 60 to 61 percent, while non-GAAP diluted earnings per share is expected at USD 5.80 plus or minus USD 0.20.

The outlook points to continued demand for higher-capacity drives and a favorable pricing environment. For investors, the stronger forecast also raises the execution bar: further growth must be matched by sustained pricing, capacity expansion and margin delivery.

Dividend increase sets next date

Western Digital's board approved a 17 percent increase in the quarterly cash dividend to USD 0.175 per share from USD 0.15. The payment is scheduled for December 17, 2026, for shareholders of record at the close of business on December 4.

Western Digital stock traded at 296.45 euros on Lang & Schwarz at 14:02 CET on Wednesday, November 4, 2026. Investors can follow the real-time quote of Western Digital stock.

Western Digital stock at a glance

• Company: Western Digital Corporation
• ISIN: US9581021055
• Ticker: WDC
• Home exchange: Nasdaq
• Latest Lang & Schwarz quote: EUR 296.45 at 14:02 CET on Wednesday, November 4, 2026
• Fiscal period: First quarter 2027, ended October 2, 2026

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