Western Digital Reports Q1 FY27 Results: Revenue Up 55% YoY and Raises Dividend by 17%

Financial Results Overview

Western Digital Corporation furnished an 8-K reporting its fiscal first quarter 2027 financial results for the period ended October 2, 2026.

Key Q1 FY27 Highlights:

• Revenue: $4.381 billion, up 55% year-over-year and 17% quarter-over-quarter.
• Gross Margin: GAAP gross margin expanded to 57.8% (up 1,430 bps YoY); non-GAAP gross margin stood at 58.1% (up 1,420 bps YoY).
• Operating Income: GAAP operating income reached $2.046 billion (+158% YoY); non-GAAP operating income reached $2.153 billion (+152% YoY), reflecting a 49.1% non-GAAP operating margin.
• Diluted EPS: GAAP diluted EPS was $4.63 (+51% YoY); non-GAAP diluted EPS surged 161% YoY to $4.64.
• Cash Flow: Operating cash flow stood at $1.60 billion; free cash flow was $1.38 billion.

Capital Allocation & Guidance:

• Dividend Increase: The Board declared a quarterly cash dividend of $0.175 per share, representing a 17% increase, payable December 17, 2026, to shareholders of record on December 4, 2026.
• Q2 FY27 Outlook: WD expects Q2 FY27 revenue of $5.1 billion ± $100 million (+66% to +72% YoY), non-GAAP gross margin between 60.0% and 61.0%, operating expenses of $400M–$410M, and non-GAAP EPS of $5.80 ± $0.20 based on approximately 380 million diluted shares.