Western Digital Reports Strong Q2 FY26 Financial Results with Significant Revenue and EPS Growth, Provides Positive Q3 Outlook
WDC has more than doubled off its 52-week low of $28.83.
Summary
Western Digital reported strong fiscal Q2 2026 financial results, with significant year-over-year revenue and EPS growth, alongside a positive outlook for Q3 2026, driven by AI and data center demand.
Key Events · Earnings and Guidance · WDC
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Strong Q2 FY26 Financial Performance
Reported revenue of $3.02 billion, a 25% increase year-over-year, and non-GAAP diluted EPS of $2.13, up 78% year-over-year.
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Significant Margin Expansion
Achieved a non-GAAP gross margin of 46.1%, representing a 770 basis point improvement compared to the prior year.
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Robust Free Cash Flow and Shareholder Returns
Generated $653 million in free cash flow, with over 100% of this returned to shareholders through share repurchases and dividend payments.
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Positive Q3 FY26 Outlook
Provided guidance for Q3 FY26 revenue of approximately $3.2 billion (up ~40% year-over-year at mid-point) and non-GAAP diluted EPS of $2.30 at the mid-point.
Analysis · WDC · Technology
Western Digital announced robust financial results for its fiscal second quarter, demonstrating substantial year-over-year growth in key metrics. Revenue increased by 25% and non-GAAP diluted EPS surged by 78%, driven by strong demand in the AI-driven data economy and for high-capacity HDDs. The company also reported significant gross margin expansion and strong free cash flow generation, with over 100% of free cash flow returned to shareholders. Furthermore, Western Digital provided an optimistic outlook for Q3 FY26, projecting continued strong revenue growth and improved profitability, reinforcing investor confidence in its strategic direction and market position.
How filings like this one have moved
In the 30 days to Sep 11, 2026, 35.9% of the 1728 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.06%. 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 $281.00 on NASDAQ in the Technology sector, with a market capitalization of approximately $95.2B. The 52-week trading range was $28.83 to $285.42. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.