Q1 26 EPS
$1.78
BEAT +12.93%
Est. $1.58
Q1 26 Revenue
$2.82B
BEAT +3.21%
Est. $2.73B
vs S&P Since Q1 26
+177.7%
BEATING MARKET
WDC +183.3% vs S&P +5.7%
Market Reaction
Did WDC Beat Earnings? Q1 2026 Results
Western Digital kicked off fiscal 2026 with a convincing beat on both lines, its first full quarter as a pure-play hard drive company following the February 2025 spinoff of its flash business into Sandisk. Non-GAAP diluted EPS came in at $1.78, clear… Read more Western Digital kicked off fiscal 2026 with a convincing beat on both lines, its first full quarter as a pure-play hard drive company following the February 2025 spinoff of its flash business into Sandisk. Non-GAAP diluted EPS came in at $1.78, clearing the $1.58 consensus estimate by 12.93%, while revenue of $2.82 billion topped expectations by 3.21%, even as the reported figure reflected a 31.2% year-over-year decline tied to the Sandisk separation. The real story behind the numbers was margin expansion, with non-GAAP gross margin reaching 43.9% and non-GAAP operating margin surging to 30.4% from 18.4% a year ago, driven by accelerating adoption of high-capacity drives in cloud data centers. Free cash flow of $599 million underscored the earnings quality, a dramatic reversal from negative $14 million in the prior-year period. Western Digital has beaten estimates consistently, and management's Q2 guidance of roughly $2.90 billion in revenue and $1.88 in non-GAAP EPS suggests the AI-driven storage demand cycle still has room to run.
Key Takeaways
- • Strong demand environment driven by growth of data storage in the cloud
- • Revenue and gross margin above the high end of guidance range
- • AI accelerating data creation driving storage demand
- • Adoption of high-capacity drives improving profitability
- • 27% year-over-year revenue growth
- • Non-GAAP gross margin expanded 660 basis points year over year to 43.9%
- • Non-GAAP operating margin expanded to 30.4% from 18.4% year over year
WDC YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
WDC Revenue by Segment
Business unit performance breakdown
“Western Digital continues to execute well in a strong demand environment driven by growth of data storage in the cloud. In our fiscal first quarter, we achieved revenue and gross margin above the high end of our guidance range, while delivering strong free cash flow.”
— Irving Tan, Q1 2026 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% |