AI Earnings Predictions for Western Digital Corporation (WDC)

EX-99.1

2 a4ex991-pressreleaseq426.htm

EX-99.1

Document

Exhibit 99.1

WD Reports Fiscal Fourth Quarter and Fiscal Year 2026 Financial Results

Q4FY26 Highlights:

•Revenue of $3.75 billion, up 44% year-over-year

•GAAP gross margin of 54.1%; non-GAAP gross margin of 54.4%

•GAAP diluted EPS of $8.21; non-GAAP diluted EPS of $3.56

•Cash flow from operations of $1.39 billion; free cash flow of $1.28 billion

•Q1FY27 revenue expected to be up 42% to 49% year-over-year

SAN JOSE, Calif. — August 5, 2026 — Western Digital Corporation (Nasdaq: WDC) today reported fiscal fourth quarter and fiscal year 2026 financial results for the period ended July 3, 2026.

“WD concluded fiscal year 2026 with strong performance. In our fiscal fourth quarter, revenue increased 44% year over year, gross and operating margins expanded, and earnings per share more than doubled. These results reflect our ability to scale innovation and operational excellence across our global organization, supporting our customers’ growing storage demand,” said Irving Tan, CEO of WD. “As global data creation continues to accelerate, we enter fiscal year 2027 with continued confidence in the durability of demand and with increasing visibility into our business. With our scale, technology leadership, and operational discipline, WD is well positioned to capitalize on the secular data growth opportunity and deliver long-term shareholder value.”

1

Western Digital Reports Fiscal Fourth Quarter and Fiscal Year 2026 Financial Results

Q4FY26 Financial Highlights

($ in millions, except per share amounts)

GAAP

Q4FY26Q3FY26Q4FY25Q/QY/Y

Revenue $3,747$3,337$2,605+12%+44%

Gross Margin54.1%50.2%41.0%+390 bps+1310 bps

Operating Income$1,563$1,190$680+31%+130%

Operating Margin41.7%35.7%26.1%+600 bps+1560 bps

Diluted Net Income Attributable to Common Shareholders $3,195$3,172$243+1%+1215%

Diluted Net Income Per Common Share $8.21$8.20$0.67+0%+1125%

Non-GAAP

Q4FY26Q3FY26Q4FY25Q/Q

Y/Y

Revenue $3,747$3,337$2,605+12%+44%

Gross Margin54.4%50.5%41.3%+390 bps+1310 bps

Operating Income $1,655$1,287$732+29%+126%

Operating Margin44.2%38.6%28.1%+560 bps+1610 bps

Diluted Net Income Attributable to Common Shareholders $1,382$1,048$600+32%+130%

Diluted Net Income Per Common Share $3.56$2.72$1.70+31%+109%

Fiscal Year 2026 Financial Highlights

($ in millions, except per share amounts) GAAPNon-GAAP

FY26FY25Y/YFY26FY25Y/Y

Revenue$12,919$9,520+36%$12,919$9,520+36%

Gross Margin48.9%38.8%+1010 bps49.1%39.4%+970 bps

Operating Income$4,453$2,334+91%$4,817$2,326+107%

Operating Margin34.5%24.5%+1000 bps37.3%24.4%+1290 bps

Diluted Net Income Attributable to Common Shareholders$9,298$1,599+481%$3,883$1,768+120%

Diluted Net Income Per Common Share$24.28$4.45+446%$10.22$5.02+104%

2

Western Digital Reports Fiscal Fourth Quarter and Fiscal Year 2026 Financial Results

Business Outlook for Fiscal First Quarter of 2027

“Fiscal 2026 was an outstanding year for WD, characterized by broadening demand, deeper customer engagement, and disciplined execution across all end markets. As the cloud and other data-intensive workloads continue to expand, we remain confident in the long-term growth trajectory of our business, further margin expansion, and strong free cash flow generation,” said Kris Sennesael, CFO of WD. “For our fiscal first quarter of 2027, at the midpoint of the ranges provided in the table below, we expect revenue of $4.1 billion, non-GAAP gross margin of 55.5%, and non-GAAP EPS of $4.00.”

Non-GAAP(1)

Revenue $4.1B +/- $100M

Gross margin55% - 56%

Operating expenses

$390M - $400M

Interest and other expense, net

~ $15M

Tax rate ~ 17%

Diluted net income per common share $4.00 +/- $0.15

Diluted weighted average shares

~ 388M

(1)     We provide earnings guidance only on a non-GAAP basis because certain information necessary to reconcile such guidance to GAAP is difficult to estimate or cannot be allocated or quantified with certainty and is dependent on future events outside of our control. Please refer to the section titled “Non-GAAP Guidance” under “Discussion Regarding the Use of Non-GAAP Financial Measures” in this press release for additional information regarding the non-GAAP measures, including quantification of known expected adjustment items.

Dividend

WD’s Board of Directors declared a cash dividend of $0.15 per share of the company’s common stock, which will be paid on September 17, 2026 to stockholders of record as of the close of business on September 8, 2026.

WD’s Fiscal Fourth Quarter 2026 Conference Call

WD will host a conference call to discuss its fiscal fourth quarter and fiscal year 2026 results and business outlook for the fiscal first quarter of 2027 today at 1:30 p.m. Pacific / 4:30 p.m. Eastern. The live and archived conference call and the earnings presentation can be accessed online at investor.wdc.com.

About WD

WD, also known as Western Digital, builds the storage infrastructure that powers certainty in the AI-driven data e

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wdc-202601290000106040false00001060402026-01-292026-01-29

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): January 29, 2026

WESTERN DIGITAL CORPORATION

(Exact Name of Registrant as Specified in its Charter)

Delaware001-0870333-0956711 (State or Other Jurisdiction of Incorporation)(Commission File Number)(I.R.S. Employer Identification No.)

5601 Great Oaks Parkway 95119 San Jose

California

(Address of Principal Executive Offices)(Zip Code)

(408) 717-6000 (Registrant’s Telephone Number, Including Area Code)

Not applicable (Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): ☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s)Name of each exchange on which registered Common Stock, $0.01 Par Value Per ShareWDCThe Nasdaq Stock Market LLC

(Nasdaq Global Select Market)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02    Results of Operations and Financial Condition.

On January 29, 2026, Western Digital Corporation (the “Company”) announced financial results for the fiscal second quarter ended January 2, 2026. A copy of the press release making this announcement is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, the information in this Item 2.02, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01    Financial Statements and Exhibits.

(d)    Exhibits

99. 1    Press Release issued by Western Digital Corporation on January 29, 2026 announcing financial results for the fiscal second quarter ended January 2, 2026.

104    Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Western Digital Corporation (Registrant)

By:/s/ Cynthia Tregillis Cynthia Tregillis Executive Vice President, Chief Legal Officer and Secretary

Date: January 29, 2026