Revenue surged 43.8% YoY to $3.7B in 2026Q4, with gross margin expanding to a record 54.1% from 29.6% in 2024Q3, reflecting strong pricing power and operating leverage.
Western Digital Corporation (WDC) annual income statement — 30-year revenue, gross profit & net income history
| Metric | Jul'26 | Jun'25 | Jun'24 | Jun'23 | Jul'22 | Jul'21 | Jul'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 | Jun'99 | Jun'98 | Jun'97 |
|---|
| Sales/Revenue | 12.92B | 9.52B | 6.32B | 6.25B | 18.79B | 16.92B | 16.74B | 16.57B | 20.65B | 19.09B | 12.99B | 14.57B | 15.13B | 15.35B | 12.48B | 9.53B | 9.85B | 7.45B | 8.07B | 5.47B | 4.34B | 3.64B | 3.05B | 2.72B | 2.15B | 1.95B | 1.96B | 2.77B | 3.54B | 4.18B |
| Revenue Growth % | 35.7% | 50.7% | 0.99% | -66.72% | 11.06% | 1.11% | 1.01% | -19.75% | 8.14% | 46.94% | -10.83% | -3.69% | -1.44% | 23.02% | 30.99% | -3.29% | 32.16% | -7.69% | 47.66% | 25.96% | 19.3% | 19.43% | 12.07% | 26.37% | 10.12% | -0.19% | -29.27% | -21.86% | -15.23% | 45.82% |
| Cost of Goods Sold | 6.61B | 5.83B | 4.54B | 4.86B | 12.92B | 12.4B | 12.96B | 12.82B | 12.94B | 13.02B | 9.56B | 10.35B | 10.77B | 10.99B | 8.84B | 7.74B | 7.45B | 6.12B | 6.33B | 4.57B | 3.51B | 3.05B | 2.59B | 2.28B | 1.87B | 1.75B | 1.95B | 2.64B | 3.33B | 3.46B |
| COGS % of Revenue | 51.15% | 61.22% | 71.93% | 77.76% | 68.74% | 73.28% | 77.41% | 77.36% | 62.68% | 68.2% | 73.56% | 71.03% | 71.18% | 71.58% | 70.84% | 81.2% | 75.62% | 82.06% | 78.46% | 83.54% | 80.93% | 83.8% | 84.86% | 83.71% | 86.91% | 89.37% | 99.51% | 95.37% | 94.17% | 82.91% |
| Gross Profit | 6.31B | 3.69B | 1.77B | 1.39B | 5.87B | 4.52B | 3.78B | 3.75B | 7.71B | 6.07B | 3.44B | 4.22B | 4.36B | 4.36B | 3.64B | 1.79B | 2.4B | 1.34B | 1.74B | 900M | 828M | 589.6M | 461.4M | 442.9M | 281.6M | 207.74M | 9.61M | 128.2M | 206.6M | 713.8M |
| Gross Margin % | 48.85% | 38.78% | 28.07% | 22.24% | 31.26% | 26.72% | 22.59% | 22.64% | 37.32% | 31.8% | 26.44% | 28.97% | 28.82% | 28.42% | 29.16% | 18.8% | 24.38% | 17.94% | 21.54% | 16.46% | 19.07% | 16.2% | 15.14% | 16.29% | 13.09% | 10.63% | 0.49% | 4.63% | 5.83% | 17.09% |
| Gross Profit Growth % | 70.94% | 108.23% | 27.46% | -76.32% | 29.93% | 19.57% | 0.77% | -51.3% | 26.89% | 76.77% | -18.62% | -3.19% | -0.07% | 19.93% | 103.13% | -25.41% | 79.58% | -23.12% | 93.22% | 8.7% | 40.43% | 27.79% | 4.18% | 57.28% | 35.56% | 2062.81% | -92.51% | -37.95% | -71.06% | 64.62% |
| Operating Expenses | 1.8B | 1.36B | 2.18B | 1.94B | 3.48B | 3.3B | 3.45B | 3.67B | 4.09B | 4.12B | 2.97B | 2.61B | 2.57B | 3.1B | 1.87B | 1.01B | 876M | 818M | 733M | 485M | 462M | 394.9M | 307.9M | 256.1M | 230.93M | 229.21M | 363.48M | 544.1M | 502.4M | 412.2M |
| OpEx % of Revenue | 13.96% | 14.26% | 34.45% | 31% | 18.53% | 19.51% | 20.59% | 22.12% | 19.8% | 21.57% | 22.85% | 17.91% | 16.98% | 20.17% | 14.96% | 10.6% | 8.89% | 10.98% | 9.08% | 8.87% | 10.64% | 10.85% | 10.11% | 9.42% | 10.73% | 11.73% | 18.57% | 19.66% | 14.19% | 9.87% |
| Selling, General & Admin | 551M | 568M | 726M | 807M | 1.12B | 1.1B | 1.15B | 1.32B | 1.47B | 1.45B | 997M | 788M | 813M | 706M | 518M | 282M | 265M | 201M | 220M | 179M | 166M | 155.1M | 106.1M | 121.4M | 110.8M | 115.83M | 126.99M | 196M | 192.1M | 198.5M |
| SG&A % of Revenue | 4.26% | 5.97% | 11.49% | 12.9% | 5.94% | 6.53% | 6.89% | 7.95% | 7.13% | 7.57% | 7.67% | 5.41% | 5.37% | 4.6% | 4.15% | 2.96% | 2.69% | 2.7% | 2.72% | 3.27% | 3.82% | 4.26% | 3.48% | 4.47% | 5.15% | 5.93% | 6.49% | 7.08% | 5.42% | 4.75% |
| Research & Development | 1.16B | 994M | 950M | 986M | 2.32B | 2.24B | 2.26B | 2.18B | 2.4B | 2.44B | 1.63B | 1.65B | 1.66B | 1.57B | 1.05B | 703M | 611M | 509M | 464M | 306M | 297M | 239.8M | 201.8M | 134.7M | 120.13M | 113.38M | 150.66M | 217M | 203.7M | 150.2M |
| R&D % of Revenue | 8.99% | 10.44% | 15.04% | 15.76% | 12.36% | 13.25% | 13.51% | 13.17% | 11.62% | 12.78% | 12.52% | 11.3% | 10.98% | 10.24% | 8.45% | 7.38% | 6.2% | 6.83% | 5.75% | 5.6% | 6.84% | 6.59% | 6.62% | 4.95% | 5.58% | 5.8% | 7.7% | 7.84% | 5.75% | 3.6% |
| Other Operating Expenses | 91M | -204M | 500M | 146M | 43M | -47M | 32M | 166M | 215M | 232M | 345M | 176M | 95M | 819M | 294M | 25M | 0 | 108M | 49M | 0 | -1M | 0 | 0 | 0 | 0 | 0 | 85.84M | 131.1M | 106.6M | 63.5M |
| Operating Income | 4.51B | 2.33B | -403M | -548M | 2.39B | 1.22B | 335M | 87M | 3.62B | 1.95B | 466M | 1.61B | 1.79B | 1.27B | 1.77B | 781M | 1.52B | 519M | 1.01B | 415M | 366M | 194.7M | 153.5M | 186.8M | 50.68M | -21.48M | -353.88M | -415.9M | -295.8M | 301.6M |
| Operating Margin % | 34.89% | 24.52% | -6.38% | -8.76% | 12.72% | 7.21% | 2% | 0.53% | 17.52% | 10.23% | 3.59% | 11.06% | 11.84% | 8.25% | 14.19% | 8.2% | 15.48% | 6.96% | 12.46% | 7.59% | 8.43% | 5.35% | 5.04% | 6.87% | 2.36% | -1.1% | -18.08% | -15.03% | -8.35% | 7.22% |
| Operating Income Growth % | 93.14% | 679.16% | 26.46% | -122.92% | 95.98% | 264.18% | 285.06% | -97.59% | 85.11% | 319.31% | -71.07% | -10.05% | 41.47% | -28.52% | 126.76% | -48.79% | 193.83% | -48.41% | 142.41% | 13.39% | 87.98% | 26.84% | -17.83% | 268.62% | 335.97% | 93.93% | 14.91% | -40.6% | -198.08% | 289.66% |
| EBITDA | 4.78B | 2.79B | 165M | 280M | 3.32B | 2.43B | 1.9B | 1.9B | 5.67B | 4.08B | 1.62B | 2.73B | 3.04B | 2.5B | 2.6B | 1.38B | 2.04B | 998M | 1.42B | 625M | 526M | 325.7M | 253.9M | 237.2M | 96.47M | 30.43M | -275.59M | -284.83M | -189.2M | 365.1M |
| EBITDA Margin % | 37.03% | 29.25% | 2.61% | 4.48% | 17.67% | 14.37% | 11.36% | 11.46% | 27.48% | 21.38% | 12.47% | 18.7% | 20.06% | 16.28% | 20.8% | 14.52% | 20.66% | 13.39% | 17.57% | 11.43% | 12.12% | 8.95% | 8.33% | 8.73% | 4.48% | 1.56% | -14.08% | -10.29% | -5.34% | 8.74% |
| EBITDA Growth % | 71.78% | 1587.88% | -41.07% | -91.57% | 36.51% | 27.93% | 0.11% | -66.53% | 38.98% | 151.98% | -40.55% | -10.21% | 21.45% | -3.74% | 87.71% | -32.04% | 103.91% | -29.67% | 127.04% | 18.82% | 61.5% | 28.28% | 7.04% | 145.88% | 217.03% | 111.04% | 3.24% | -50.55% | -151.82% | 183.02% |
| D&A (Non-Cash Add-back) | 276M | 451M | 568M | 828M | 929M | 1.21B | 1.57B | 1.81B | 2.06B | 2.13B | 1.15B | 1.11B | 1.24B | 1.23B | 825M | 602M | 510M | 479M | 413M | 210M | 160M | 131M | 100.4M | 50.4M | 45.79M | 51.91M | 78.28M | 131.07M | 106.6M | 63.5M |
| EBIT | 10B | 1.49B | -325M | -539M | 2.48B | 1.25B | 367M | 182M | 2.76B | 1.62B | 419M | 1.63B | 1.81B | 1.28B | 1.78B | 790M | 1.53B | 528M | 1.03B | 415M | 365M | 194.7M | 153.5M | 186.8M | 50.68M | -21.48M | -268.04M | -415.9M | -295.8M | 301.6M |
| Net Interest Income | 2.58B | -312M | -381M | -291M | -298M | -319M | -385M | -412M | -616M | -821M | -240M | -35M | -41M | -44M | -14M | -1M | -5M | -18M | -25M | 0 | 15.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 2.73B | 45M | 33M | 19M | 6M | 7M | 28M | 57M | 60M | 26M | 26M | 14M | 15M | 11M | 12M | 0 | 4M | 9M | 27M | 0 | 19.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 151M | 357M | 414M | 310M | 304M | 326M | 413M | 469M | 676M | 847M | 266M | 49M | 56M | 55M | 26M | 1M | 9M | 27M | 52M | 0 | 3.7M | 5M | 0 | 0 | 0 | 0 | 0 | 0 | 4M | 0 |
| Other Income/Expense | 5.4B | -1.2B | -336M | -301M | -220M | -293M | -381M | -374M | -1.53B | -1.19B | -313M | -34M | -39M | -44M | -14M | -1M | -5M | -18M | -25M | 28M | 16M | 5.4M | 300K | 2.9M | 1.42M | -53.12M | 4.87M | 415.9M | 3.8M | 13.2M |
| Pretax Income | 9.9B | 1.13B | -739M | -849M | 2.17B | 927M | -46M | -287M | 2.08B | 769M | 153M | 1.58B | 1.75B | 1.22B | 1.76B | 780M | 1.52B | 501M | 981M | 443M | 382M | 200.1M | 153.8M | 189.7M | 52.09M | -74.59M | -349M | 0 | -292M | 314.8M |
| Pretax Margin % | 76.67% | 11.87% | -11.7% | -13.57% | 11.55% | 5.48% | -0.27% | -1.73% | 10.1% | 4.03% | 1.18% | 10.82% | 11.58% | 7.96% | 14.08% | 8.19% | 15.43% | 6.72% | 12.15% | 8.1% | 8.8% | 5.5% | 5.05% | 6.98% | 2.42% | -3.82% | -17.83% | - | -8.25% | 7.53% |
| Income Tax | 481M | -513M | 26M | 53M | 625M | 106M | 204M | 467M | 1.41B | 372M | -89M | 112M | 135M | 242M | 145M | 54M | 138M | 31M | 114M | -121M | -13M | 4.1M | 4M | 7.6M | -1.14M | 0 | -19.5M | 0 | -1.8M | 47.2M |
| Effective Tax Rate % | 4.86% | -45.4% | -3.52% | -6.24% | 28.79% | 11.43% | -443.48% | -162.72% | 67.63% | 48.37% | -58.17% | 7.1% | 7.71% | 19.8% | 8.25% | 6.92% | 9.08% | 6.19% | 11.62% | -27.31% | -3.4% | 2.05% | 2.6% | 4.01% | -2.19% | 0% | 5.59% | - | 0.62% | 14.99% |
| Net Income | 9.42B | 1.86B | -798M | -1.68B | 1.55B | 821M | -250M | -754M | 675M | 397M | 242M | 1.47B | 1.62B | 980M | 1.61B | 726M | 1.38B | 470M | 867M | 564M | 395M | 196M | 149.8M | 182.1M | 65.43M | -98.86M | -188.02M | -492.7M | -290.2M | 267.6M |
| Net Margin % | 72.95% | 19.55% | -12.63% | -26.92% | 8.23% | 4.85% | -1.49% | -4.55% | 3.27% | 2.08% | 1.86% | 10.05% | 10.69% | 6.38% | 12.92% | 7.62% | 14.03% | 6.31% | 10.74% | 10.31% | 9.1% | 5.39% | 4.92% | 6.7% | 3.04% | -5.06% | -9.61% | -17.8% | -8.19% | 6.41% |
| Net Income Growth % | 406.39% | 333.21% | 52.61% | -208.93% | 88.31% | 428.4% | 66.84% | -211.7% | 70.03% | 64.05% | -83.48% | -9.4% | 65% | -39.21% | 122.04% | -47.47% | 194.04% | -45.79% | 53.72% | 42.78% | 101.53% | 30.84% | -17.74% | 178.32% | 166.18% | 47.42% | 61.84% | -69.78% | -208.45% | 176.16% |
| Net Income (Continuing) | 9.42B | 1.64B | -765M | -902M | 1.55B | 821M | -250M | -754M | 675M | 397M | 242M | 1.47B | 1.62B | 980M | 1.61B | 726M | 1.38B | 470M | 867M | 564M | 395M | 196M | 149.8M | 182.1M | 53.23M | -74.59M | -329.5M | -492.7M | -290.2M | 267.6M |
| Discontinued Operations | 0 | 246M | -33M | -782M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.3M | 12.24M | -45.17M | -25.41M | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 9.38M | 10M | 0 | 0 | 0 |
| EPS (Diluted) | 24.80 | 5.12 | -2.61 | -5.37 | 4.75 | 2.66 | -0.84 | -2.58 | 2.20 | 1.34 | 1.00 | 6.18 | 6.68 | 3.98 | 6.58 | 3.09 | 5.93 | 2.08 | 3.84 | 2.50 | 1.76 | 0.90 | 0.69 | 0.87 | 0.34 | -0.31 | -2.69 | -5.51 | -3.32 | 2.86 |
| EPS Growth % | 384.38% | 296.17% | 51.4% | -213.05% | 78.57% | 416.67% | 67.44% | -217.27% | 64.18% | 34% | -83.82% | -7.49% | 67.84% | -39.51% | 112.95% | -47.89% | 185.1% | -45.83% | 53.6% | 42.05% | 95.56% | 30.43% | -20.69% | 155.88% | 209.68% | 88.48% | 51.18% | -65.96% | -216.08% | 183.17% |
| EPS (Basic) | 27.02 | 5.31 | -2.61 | -5.37 | 4.81 | 2.69 | -0.84 | -2.58 | 2.27 | 1.38 | 1.01 | 6.31 | 6.88 | 4.07 | 6.69 | 3.14 | 6.06 | 2.12 | 3.92 | 2.57 | 1.84 | 0.94 | 0.73 | 0.91 | 0.35 | -0.31 | -2.69 | -5.51 | -3.32 | 3.07 |
| Diluted Shares Outstanding | 376M | 359M | 326M | 318M | 316M | 309M | 298M | 292M | 307M | 296M | 242M | 237M | 242M | 246M | 245M | 235M | 233M | 226M | 226M | 226M | 224M | 217.78M | 217.1M | 209.31M | 193.7M | 165.16M | 116.98M | 89.48M | 87.53M | 93.57M |
| Basic Shares Outstanding | 345M | 347M | 326M | 318M | 312M | 305M | 298M | 292M | 297M | 288M | 239M | 232M | 235M | 241M | 241M | 231M | 228M | 222M | 221M | 219M | 215M | 208.51M | 205.21M | 200.11M | 189M | 165.16M | 116.98M | 89.48M | 87.53M | 87.17M |
| Dividend Payout Ratio | 1.95% | 2.36% | - | - | - | - | - | - | 87.85% | 144.58% | 191.74% | 27.03% | 16.02% | 18.47% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying WDC stock.
For fiscal year 2026, Western Digital Corporation (WDC) reported total revenue of $12.92B. This represents a 209.2% increase compared to $4.18B in 1997.
Western Digital Corporation (WDC) is profitable, generating $9.42B in net income for the fiscal year ending 2026 with a net profit margin of 72.9%.
Western Digital Corporation (WDC) reported an operating income of $4.51B, resulting in an operating profit margin of 34.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Western Digital Corporation (WDC) generated $6.31B in gross profit for the year, representing a gross profit margin of 48.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
AI demand concentration and tax benefit non-recurrence
Metrics are mathematically derived from official filings.
AI-Driven Revenue Acceleration
Revenue surged 43.8% YoY in 2026Q4 to $3.7B, with the latest quarter up 44% YoY, according to reported financials, indicating accelerating growth fueled by AI storage demand.
The sequential acceleration from 27.4% growth in 2026Q1 to 43.8% in 2026Q4 suggests a strengthening demand environment, likely driven by cloud and AI-related storage. However, the 29.6% decline in 2026Q2 highlights volatility, and investors should monitor whether this growth is sustainable or a pull-forward of AI infrastructure spending.
Gross Margin Expansion to Record Highs
Gross margin expanded from 29.6% in 2024Q3 to 54.1% in 2026Q4, as per income statement data, reflecting favorable NAND pricing and a richer product mix.
The 24.5 percentage point improvement in gross margin over eight quarters indicates strong pricing power and operational efficiency, likely driven by high-capacity enterprise drives and disciplined supply. However, historical volatility in NAND prices suggests this margin level may not be sustainable, and investors should watch for potential inventory write-downs if pricing reverses.
Operating Leverage Amplifies Profitability
Operating income grew from $94M in 2024Q3 to $1.6B in 2026Q4, with operating margin expanding from 5.4% to 41.7%, as reported, demonstrating significant operating leverage.
The operating margin expansion outpaced gross margin gains, indicating that SG&A and R&D costs are growing slower than revenue. For instance, SG&A as a percentage of revenue fell from 9.8% in 2024Q3 to 3.7% in 2026Q4, while R&D declined from 13.5% to 7.7%. This suggests efficient cost control and scalability, though the sustainability of such leverage depends on continued revenue growth.
Tax Benefit Distorts Net Income
Net margin of 85.3% in 2026Q4 far exceeds operating margin of 41.7%, per financial statements, implying a substantial one-time tax benefit or non-operating gain.
The wide divergence between net and operating margins suggests that reported net income is not indicative of sustainable earnings power. For example, in 2026Q4, net income of $3.2B is more than double operating income of $1.6B, likely due to a tax valuation allowance release or other non-recurring items. Investors should adjust for this to assess normalized profitability.
Cost Discipline Amidst Growth
COGS as a percentage of revenue fell from 70.4% in 2024Q3 to 45.9% in 2026Q4, as per income statement data, indicating improved cost efficiency and pricing power.
The decline in COGS ratio reflects favorable NAND pricing and better manufacturing utilization, but also highlights the cyclicality of the business. R&D and SG&A expenses have remained relatively stable in absolute terms, suggesting management is controlling overhead while scaling revenue. However, the high fixed-cost nature of the business means any demand downturn could quickly reverse these gains.
Sustainability of AI-Driven Growth Questioned
Despite 44% YoY revenue growth in 2026Q4, the reliance on AI storage demand and a one-time tax benefit may overstate underlying profitability, as per reported figures.
Short-sellers might argue that the current earnings power is inflated by non-recurring tax benefits and a cyclical upswing in NAND pricing. The 72.9% net margin versus 34.9% operating margin in the TTM data suggests earnings quality is low. Additionally, if AI infrastructure spending decelerates, the company could face inventory corrections and margin compression, as seen in the 2025Q2 revenue drop of 41.3% YoY.