Western Digital Posts 55% Revenue Growth, Raises Dividend as AI Storage Demand Climbs

Western Digital Corporation said in a filing with the SEC that fiscal first quarter 2027 revenue reached $4.38 billion, up 55% year-over-year, as the company reported strong demand for its storage products.

GAAP gross margin for the quarter ended October 2, 2026 came in at 57.8%, while non-GAAP gross margin was 58.1%. GAAP diluted earnings per share were $4.63 and non-GAAP diluted EPS reached $4.64, up 161% year-over-year on a non-GAAP basis.

Operating income rose to $2.05 billion on a GAAP basis, a 158% increase from the prior-year period, with operating margin expanding to 46.7%. Cash flow from operations totaled $1.60 billion, and free cash flow was $1.38 billion.

CEO Irving Tan said fiscal 2027 is off to a strong start, with revenue growth, expanded margins and a 161% year-over-year increase in non-GAAP EPS driven by robust customer demand and disciplined execution. The company is raising its quarterly cash dividend by 17% to $0.175 per share, payable December 17, 2026 to stockholders of record as of December 4, 2026.

CFO Kris Sennesael said the quarter demonstrated continued momentum, with robust exabyte growth and improved pricing. For fiscal second quarter 2027, Western Digital expects revenue of $5.1 billion, non-GAAP gross margin of 60.5%, and non-GAAP EPS of $5.80 at the midpoint of guidance ranges, with revenue expected to rise 66% to 72% year-over-year.

The balance sheet showed total assets of $14.24 billion as of October 2, 2026, up from $13.86 billion at the end of the prior quarter. Cash and cash equivalents stood at $1.31 billion, down from $1.58 billion, reflecting $1.0 billion in share repurchases and $570 million used to settle convertible notes transactions during the quarter.

Finazon · prior-day close, indicative (IEX-derived, not the official close) · Oct 21, 2026