Revenue growth accelerated to 45.5% in 2026Q3, while gross margins expanded significantly from the 16.2% cyclical low in 2024Q2 to 50.2%.
| Metric | TTM | 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 | Jun'96 |
|---|
| Sales/Revenue | 11.78B | 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 | 2.87B |
| Revenue Growth % | 9.1% | 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% | 34.46% |
| Cost of Goods Sold | 6.43B | 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 | 2.43B |
| COGS % of Revenue | - | 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% | 84.87% |
| Gross Profit | 5.35B | 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 | 433.6M |
| Gross Margin % | 45.43% | 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% | 15.13% |
| Gross Profit Growth % | - | 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% | -0.94% |
| Operating Expenses | 1.73B | 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 | 356.2M |
| OpEx % of Revenue | - | 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% | 12.43% |
| Selling, General & Admin | 537M | 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 | 304.6M |
| SG&A % of Revenue | - | 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% | 10.63% |
| Research & Development | 1.14B | 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 | 150.4M |
| R&D % of Revenue | - | 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% | 5.25% |
| Other Operating Expenses | 3M | -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 | -98.8M |
| Operating Income | 3.63B | 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 | 77.4M |
| Operating Margin % | 30.78% | 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% | 2.7% |
| Operating Income Growth % | - | 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% | -41.8% |
| EBITDA | 3.99B | 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 | 129M |
| EBITDA Margin % | 33.85% | 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% | 4.5% |
| EBITDA Growth % | 37.96% | 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% | -26.95% |
| D&A (Non-Cash Add-back) | 362M | 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 | 51.6M |
| EBIT | 4.97B | 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 | 77.4M |
| Net Interest Income | 390M | -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 | 0 |
| Interest Income | 577M | 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 | 0 |
| Interest Expense | 187M | 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 | 13M |
| Other Income/Expense | 3.38B | -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 | 30.5M |
| Pretax Income | 7B | 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 | 107.9M |
| Pretax Margin % | 59.48% | 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% | 3.77% |
| Income Tax | 524M | -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 | 11M |
| Effective Tax Rate % | 7.48% | -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% | 10.19% |
| Net Income | 6.49B | 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 | 96.9M |
| Net Margin % | 55.07% | 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% | 3.38% |
| Net Income Growth % | 293.09% | 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% | -21.41% |
| Net Income (Continuing) | 6.48B | 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 | 96.9M |
| Discontinued Operations | 1000K | 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 | 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 | 0 |
| EPS (Diluted) | 17.25 | 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 | 1.01 |
| EPS Growth % | 280.65% | 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% | -18.55% |
| EPS (Basic) | - | 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 | 1.05 |
| 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 | 95.94M |
| 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 | 92.29M |
| Dividend Payout Ratio | - | 2.36% | - | - | - | - | - | - | 87.85% | 144.58% | 191.74% | 27.03% | 16.02% | 18.47% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Cyclical NAND pricing volatility
According to the latest quarterly data, Western Digital achieved a 45.5% year-over-year revenue growth in 2026Q3, signaling a robust recovery from previous cyclical troughs and suggesting that enterprise storage demand is currently outpacing the broader hardware market's historical growth rates for this specific technology cycle.
The acceleration in top-line performance appears to be fueled by a combination of normalized inventory levels at cloud service providers and a favorable pricing environment for high-capacity storage. Investors should monitor whether this growth trajectory remains sustainable as the company approaches the planned separation of its business units.
As reported in recent financial statements, Western Digital's gross margin reached 50.2% in 2026Q3, a significant improvement from the 16.2% low observed in 2024Q2, which indicates that the company is successfully capturing premium pricing for its high-density enterprise storage solutions during the current market upcycle.
This margin expansion suggests that the company's shift toward proprietary high-capacity drive technologies is yielding tangible pricing power. However, the historical volatility of NAND markets warrants caution, as these margins may be sensitive to future inventory write-downs if supply-demand dynamics shift unexpectedly.
Based on the provided income statement data, operating income scaled to $1.2 billion in 2026Q3, demonstrating significant operating leverage as the company effectively managed its SG&A and R&D expenses while revenue expanded, resulting in an operating margin of 35.7% for the most recent reported period.
The ability to maintain relatively flat R&D spending while revenue surged suggests that the company is benefiting from prior investments in its dual-technology stack. This efficiency implies that the core business model is becoming increasingly scalable, provided that the current volume growth persists.
Data from the 2026Q3 income statement reveals a net margin of 96.0%, a figure that appears anomalous and likely reflects non-operating items or tax-related adjustments rather than pure operational performance, necessitating a deeper look into the underlying quality of the reported earnings for this specific quarter.
While the operating performance is clearly strong, the massive spike in net income relative to operating income suggests that investors should be wary of one-time gains or accounting reclassifications. Such volatility in the bottom line makes it difficult to assess the true recurring earnings power of the business.
Despite the current growth, the company's history of extreme margin swings, ranging from negative territory in 2024Q2 to current highs, suggests that the business remains highly vulnerable to commodity price cycles and the inherent operational risks associated with the upcoming split into two independent entities.
Short-term performance may be masking the long-term challenges of maintaining competitiveness in both the HDD and Flash markets simultaneously. The market's current optimism may be overlooking the potential for dissynergies and increased cost structures that often accompany such significant corporate restructuring efforts.
Quick answers to the most common questions about buying WDC stock.
For fiscal year 2025, Western Digital Corporation (WDC) reported total revenue of $9.52B. This represents a 232.3% increase compared to $2.87B in 1996.
Western Digital Corporation (WDC) is profitable, generating $1.86B in net income for the fiscal year ending 2025 with a net profit margin of 19.5%.
Western Digital Corporation (WDC) reported an operating income of $2.33B, resulting in an operating profit margin of 24.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Western Digital Corporation (WDC) generated $3.69B in gross profit for the year, representing a gross profit margin of 38.8%. This demonstrates the company's core pricing power and production efficiency.