Western Digital (WDC) Q2 2026 Financial Results Summary

2026-01-30 · Stocks · QuoteReporter

Western Digital Corporation (WDC) Q2 2026 Financial Results Summary

Release Date: January 29, 2026

Western Digital Corporation (Nasdaq: WDC) reported its fiscal second quarter 2026 financial results for the period ending January 2, 2026. The company’s financial highlights showcase significant year-over-year growth across several key metrics.

Q2 FY26 Financial Highlights:

• Revenue:
• $3.02 billion

• Growth: Up 25% Year-over-Year (Y/Y)

• Gross Margin:

• GAAP: 45.7%
• Non-GAAP: 46.1%

• Improvement: GAAP up 800 basis points Y/Y; Non-GAAP up 770 basis points Y/Y

• Operating Income:

• GAAP: $908 million
• Non-GAAP: $1.02 billion

• Growth: GAAP up 62% Y/Y; Non-GAAP up 72% Y/Y

• Net Income Attributable to Common Shareholders:

• GAAP: $1.80 billion
• Non-GAAP: $807 million

• Growth: GAAP up 296% Y/Y; Non-GAAP up 92% Y/Y

• Diluted Earnings Per Share (EPS):

• GAAP: $4.73
• Non-GAAP: $2.13

• Growth: GAAP up 272% Y/Y; Non-GAAP up 78% Y/Y

• Cash Flow:

• Cash Flow from Operations: $745 million
• Free Cash Flow: $653 million

Q3 FY26 Outlook:

• Expected Revenue: Approximately $3.2 billion, representing a 40% increase Y/Y (at midpoint).
• Non-GAAP Gross Margin: Expected between 47% and 48%.
• Non-GAAP Diluted EPS: Expected to be approximately $2.30 (± $0.15).

Shareholder Returns:

• Dividend:

• Western Digital’s Board of Directors declared a cash dividend of $0.125 per share, payable on March 18, 2026, to stockholders of record as of the close of business on March 5, 2026.

• Share Repurchase Program:

• Over 100% of free cash flow was returned to shareholders through share repurchases and dividends.

Summary of Key Business Performances:

• The increase in revenue reflects Western Digital’s strategic execution to meet growing demand in the AI-driven data economy, particularly for high-capacity HDDs.
• Profitability improved thanks to a notable rise in both gross and operating margins.

Financial Overview (Comparison Table):

Conclusion

Western Digital has demonstrated a strong performance in Q2 FY26, with significant growth across all major financial metrics compared to the same quarter a year ago. The announced dividend and commitment to return cash to shareholders highlight management’s confidence in the company’s ongoing strength and stability in a rapidly evolving data storage market.

Here are the extracted tables from the press release:

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions; unaudited)

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions; unaudited)