Western Digital revenue surges 55%, forecasts even faster growth and lifts dividend 17%

Western Digital's storage boom is accelerating. The company reported a 55% jump in quarterly revenue and told investors to expect growth of 66% to 72% in the current quarter.

Revenue for the fiscal first quarter ended Oct. 2 reached $4.38 billion, up from $2.82 billion a year earlier, according to its earnings release filed with an 8-K on Thursday. GAAP diluted EPS was $4.63 and non-GAAP EPS was $4.64, up 161% from $1.78.

Non-GAAP gross margin widened to 58.1% from 43.9% a year earlier, and non-GAAP operating margin reached 49.1%.

Guidance and dividend

For the fiscal second quarter, Western Digital expects revenue of $5.1 billion, plus or minus $100 million, non-GAAP gross margin of 60% to 61%, and non-GAAP EPS of $5.80, plus or minus $0.20.

The company raised its quarterly cash dividend 17% to $0.175 a share.

"Fiscal 2027 is off to a strong start, with results exceeding expectations, driven by robust customer demand and disciplined execution," CEO Irving Tan said in the release.

Cash flow from operations was $1.60 billion and free cash flow was $1.38 billion.

By the numbers

• Revenue: $4.38 billion, up 55%
• Non-GAAP EPS: $4.64, up 161%
• Non-GAAP gross margin: 58.1%
• Free cash flow: $1.38 billion
• Next-quarter revenue outlook: $5.1 billion, plus or minus $100 million
• Quarterly dividend: $0.175, up 17%

Sources

1. Western Digital Corporation, Form 8-K (Item 2.02) with Exhibit 99.1 earnings release dated Oct. 22, 2026, accession 0001628280-26-066882

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Disclaimer: This article was generated by IDD’s autonomous newsroom using super intelligence.