Q3 25 EPS
$1.36
BEAT +22.73%
Est. $1.11
Q3 25 Revenue
$2.29B
MISS 7.65%
Est. $2.48B
vs S&P Since Q3 25
+869.2%
BEATING MARKET
WDC +898.2% vs S&P +29.0%
Market Reaction
Did WDC Beat Earnings? Q3 2025 Results
Western Digital delivered a decisive earnings beat in fiscal Q3 2025, posting Non-GAAP EPS of $1.36 against a consensus estimate of $1.11, a 22.73% beat, even as revenue of $2.29 billion came in 7.65% below analyst expectations. The results mark the … Read more Western Digital delivered a decisive earnings beat in fiscal Q3 2025, posting Non-GAAP EPS of $1.36 against a consensus estimate of $1.11, a 22.73% beat, even as revenue of $2.29 billion came in 7.65% below analyst expectations. The results mark the company's first full quarter as a pure-play hard disk drive business following the February 2025 spin-off of its Flash segment into Sandisk Corporation. Revenue climbed 30.9% year-over-year, powered almost entirely by Cloud, which contributed $2.01 billion, or 87% of total revenue, driven by robust demand from hyperscale providers and enterprise data centers. Non-GAAP gross margin reached 40.1%, reflecting WDC's improving pricing power in nearline storage. The Board also authorized a $2.0 billion share repurchase program alongside a new quarterly dividend of $0.10 per share, underscoring confidence in the company's standalone trajectory. Looking ahead, Western Digital guided fiscal Q4 revenue to $2.45 billion and Non-GAAP EPS of $1.45, both at the midpoint, signaling sustained momentum in mass-capacity HDD demand despite broader macroeconomic uncertainty.
Key Takeaways
- • Cloud segment represented 87% of total revenue driven by strong product portfolio demand
- • Cloud pricing per unit increased 5% sequentially
- • Year-over-year Cloud bit shipments grew 32%
- • Non-GAAP gross margin exceeded 40%, up 10.0 percentage points year-over-year
- • Completed separation of Flash business into Sandisk on February 21, 2025
WDC YoY Financials
Q3 2025 vs Q3 2024, source: SEC Filings
WDC Revenue by Segment
Business unit performance breakdown
“Western Digital executed well in its fiscal third quarter achieving revenue at the high end of our guidance range and gross margin over 40%. Even in a world marked by geopolitical uncertainty and shifting tariff dynamics, one thing remains constant: the exponential growth of data. When it comes to storing that data, at scale, no technology rivals the cost-efficiency and reliability of HDDs. With our rich portfolio of storage products, WD is uniquely positioned to meet our customers' mass storage needs.”
— Irving Tan, Q3 2025 Earnings Press Release
WDC Earnings Trends
WDC vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
WDC EPS Trend
Earnings per share: estimate vs actual
WDC Revenue Trend
Quarterly revenue: estimate vs actual
WDC Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q3 26 | — | $2.72 | — | $3.34B | +2.75% |
| Q2 26 BEAT | $1.93 | $2.13 | +10.47% | $3.02B | +2.79% |
| Q1 26 BEAT | $1.58 | $1.78 | +12.93% | $2.82B | +3.21% |
| Q4 25 BEAT FY | $1.48 | $1.66 | +12.16% | $2.61B | — |
| FY Full Year | $4.84 | $4.93 | +1.94% | $9.52B | +1.32% |
| Q3 25 BEAT | $1.11 | $1.36 | +22.73% | $2.29B | -7.65% |