Western Digital 10-Q: Q1 Revenue Up 55% to $4.38B, Net Income $1.78B, $1.0B Buyback
WDC has more than doubled off its 52-week low of $117.23.
Summary
Western Digital's fiscal Q1 10-Q confirms the blowout quarter: $4.38B revenue (up 55%), $1.78B net income and $1.60B of operating cash flow, funding a $1.0B buyback and nearly clearing its convertible notes. The dividend was raised to $0.175 per share.
Key Events · Earnings and Guidance · WDC
-
Q1 Revenue Jumps 55% to $4.38B
Cloud revenue of $3.87B (88% of total) rose 54% on a more than 20% increase in exabytes shipped and roughly 25% higher average selling price per exabyte; gross margin reached 57.8% versus 43.5% a year ago.
-
Net Income $1.78B, EPS $4.63
Operating income was $2.05B versus $792M a year ago; diluted EPS of $4.63 compares with $3.07, which had included a $611M Sandisk gain.
-
$1.60B Operating Cash Flow Funds Buyback
Operating cash flow of $1.60B versus $672M covered $1.00B of repurchases (2.0M shares), $570M of convertible settlements and $56M of dividends; cash ended at $1.31B.
-
Convertible Notes Nearly Retired
$191M principal was exchanged for $193M cash plus 4.7M shares ($2.16B premium) and $378M converted with a $5.09B premium settled in 9.3M shares, leaving $141M outstanding ahead of the November 16, 2026 redemption.
Analysis · WDC · Technology
Hard GAAP numbers now sit behind the October 22 earnings release: revenue of $4.38B (up 55%), gross margin of 57.8%, operating income of $2.05B and net income of $1.78B, or $4.63 diluted EPS. Cash generation was the standout — $1.60B from operations in a single quarter funded $1.00B of buybacks, $570M of convertible-note settlements and $56M of dividends while cash only fell $265M. The convertible overhang is nearly gone: $141M of principal remains after holders exchanged or converted $569M, with the conversion premium paid in 14.0M shares. The board also lifted the quarterly dividend to $0.175 from $0.15. The main offset is cost: $43M of realignment charges this quarter with roughly $74M more expected in the remainder of fiscal 2027.
How filings like this one have moved
In the 30 days to Oct 23, 2026, 36.8% of the 1044 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.77%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, WDC was trading at $348.55 on NASDAQ in the Technology sector, with a market capitalization of approximately $132.6B. The 52-week trading range was $117.23 to $799.87. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.