EarningsQ4 2026 Earnings Report
MX:WDC Q4 2026 EPS Results
Actual EPS$63.95
Consensus EPS$59.46
Beat/MissBeat by +$4.49
One Year Ago EPS$29.82
MX:WDC Q4 2026 Revenue Results
Actual Revenue$67.30B
Expected Revenue$66.46B
Beat/MissBeat by +$842.34M
YoY Revenue Growth+43.84%
Earnings Announcement Details
QuarterQ4 2026
Date08/05/2026
TimeAfter Close
Conference CallWednesday, August 5, 2026
MX:WDC Upcoming Earnings
Western Digital's next earnings date is estimated for October 22, 2026, based on past reporting schedules.
Q4 2026 Earnings Call Audio
MX:WDC Q4 2026 Earnings Call
0:00 / 0:00
Q4 2026 Earnings Slide Deck
Q4 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized strong fiscal 2026 financial performance — double-digit revenue growth (36%), substantial margin expansion, doubled EPS, robust free cash flow ($3.5B) and active capital returns — and a constructive outlook for fiscal 2027 with continued pricing improvement, product ramps (40 TB ePMR, 44 TB HAMR) and durable AI-driven demand. Notable near-term concerns include a Q4 exabyte growth slowdown (22% YoY), quarter-to-quarter variability tied to LTAs and product mix, and the usual execution/qualification risk for new technologies. Overall, the positives (material revenue, margin, cash flow, product roadmap, and guidance strength) materially outweigh the manageable short-term risks discussed.Company Guidance
Strong Full-Year Revenue Growth
Fiscal 2026 revenue increased 36% year-over-year to $12.9 billion, driven by broadening demand and customer engagements.
Margin Expansion and Profitability
Fiscal year gross margin expanded 970 basis points to 49.1% and operating margin expanded 1,290 basis points to 37.3%; fiscal Q4 gross margin was 54.4% (up 1,310 bps YoY) and Q4 operating margin was 44.2% (up 1,610 bps YoY).
Earnings Per Share and Operating Income
Full-year EPS more than doubled to $10.22; Q4 diluted EPS was $3.56, up 109% YoY. Q4 operating income was $1.66 billion, up 126% YoY.
Robust Free Cash Flow and Capital Returns
Fiscal 2026 free cash flow was $3.5 billion (27% free cash flow margin). In Q4 free cash flow was $1.3 billion (34% margin). Returned $3.1 billion to shareholders during the year, including $1.0 billion of repurchases in the quarter and a declared cash dividend of $0.15 per share.
Exabyte and Capacity Growth
Q4 shipped 231 exabytes, up 22% YoY; full fiscal year exabytes were up 25% YoY. Cloud revenue (89% of total) increased 43% YoY to $3.3 billion, reflecting strong nearline demand.
Product Roadmap Progress — High-Capacity Drives
Began shipping next-generation 40 TB ePMR drives in the June quarter and entering volume production; on track to ship 44 TB HAMR in H1 calendar 2027; targeting ~60% of nearline exabyte shipments from UltraSMR by exit of FY2027.
Improving Price per Terabyte and Cost Trends
Blended year-over-year price per terabyte improved from high single digits to high teens YoY in the quarter. Cost per terabyte in Q4 was down approximately 8% YoY; mid- to long-term goal is ~10% YoY cost per terabyte reduction.
Q1 FY2027 Guidance Indicates Continued Strength
Q1 FY2027 outlook: revenue $4.1 billion ± $100 million (midpoint +45% YoY), gross margin 55%–56%, operating expenses $390–400 million, EPS $4.00 ± $0.15, tax rate ~17%.
Innovation Beyond Capacity
Sampling high-bandwidth drives with 5 customers targeting up to 8x throughput without proportional power increase — positioned for AI workload performance requirements.
Improved Balance Sheet Position
Ended quarter with $1.6 billion cash and $1.1 billion debt, yielding a net positive cash position of ~$500 million after material shareholder returns and the SanDisk share monetization.
MX:WDC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed