Western Digital

WDC Q4 2025 Earnings

Reported Jul 30, 2025 at 4:14 PM ET · SEC Source

Q4 25 EPS

$1.66

BEAT +12.16%

Est. $1.48

Q4 25 Revenue

$2.61B

vs S&P Since Q4 25

+437.3%

BEATING MARKET

WDC +451.4% vs S&P +14.0%

Full Year 2025 Results

FY 25 EPS

$4.93

BEAT +1.94%

Est. $4.84

FY 25 Revenue

$9.52B

BEAT +1.32%

Est. $9.40B

Market Reaction

Did WDC Beat Earnings? Q4 2025 Results

Western Digital posted a decisive earnings beat in fiscal Q4 2025, with adjusted EPS of $1.66 clearing the $1.48 consensus estimate by 12.16%, as the newly streamlined HDD-pure-play company demonstrated the operating leverage embedded in its restruct… Read more Western Digital posted a decisive earnings beat in fiscal Q4 2025, with adjusted EPS of $1.66 clearing the $1.48 consensus estimate by 12.16%, as the newly streamlined HDD-pure-play company demonstrated the operating leverage embedded in its restructured business. Revenue came in at $2.60 billion, down 30.8% year over year, a decline that reflects the February 2025 separation of the Flash unit into standalone Sandisk Corporation rather than any deterioration in underlying demand. The more telling signal was non-GAAP gross margin expanding 610 basis points to 41.3%, with revenue and gross margin both finishing above the high end of guidance. Western Digital also moved aggressively on its balance sheet during the quarter, retiring $2.60 billion in debt and launching a $2.00 billion share repurchase program, actions that helped lift the stock more than 11% following the report. Looking ahead, management guided fiscal Q1 2026 revenue to approximately $2.70 billion, up roughly 22% year over year, with non-GAAP EPS of $1.54, as Cloud demand continues to anchor the company's growth outlook.

Key Takeaways

  • Revenue and gross margin above the high end of guidance
  • Cloud demand as the largest addressable market
  • Gross margin expansion of 610 basis points year over year on non-GAAP basis
  • Strong free cash flow generation of $675 million in Q4
  • AI-driven data infrastructure demand for mass storage
24/7 Wall St

WDC YoY Financials

Q4 2025 vs Q4 2024, source: SEC Filings

24/7 Wall St

WDC Revenue by Segment

Business unit performance breakdown

“Western Digital executed well in its fiscal fourth quarter, achieving revenue and gross margin above the high end of our guidance range while delivering strong free cash flow. In addition, during the quarter, we reduced debt by $2.6 billion, initiated a cash dividend, and announced the authorization of a $2.0 billion share repurchase program, reflecting our confidence in the long-term cash generating capability of our business.”

— Irving Tan, Q4 2025 Earnings Press Release