Business
WD Reports Fiscal Third Quarter 2026 Financial Results
Q3FY26 Highlights: Revenue of $3.34 billion, up 45% year-over-year GAAP gross margin of 50.2%; non-GAAP gross margin of 50.5% GAAP diluted EPS of $8.20;
About this update from Western Digital Corporation
[{"type":"text","content":"\nQ3FY26 Highlights:\n\n\n\nRevenue of $3.34 billion, up 45% year-over-year\n\n\n\nGAAP gross margin of 50.2%; non-GAAP gross margin of 50.5%\n\n\n\nGAAP diluted EPS of $8.20; non-GAAP diluted EPS of $2.72\n\n\n\nCash flow from operations of $1.12 billion; free cash flow of $978 million\n\n\n\nQ4FY26 revenue expected to be up 36% to 44% year-over-year\n\n\n\nQ4FY26 non-GAAP gross margin expected to be in the range of 51% to 52%\n\n\n\n SAN JOSE, Calif.--(BUSINESS WIRE)--\nWestern Digital Corporation (Nasdaq: WDC) today reported fiscal third quarter 2026 financial results for the period ended April 3, 2026.\n\n\n“WD started calendar year 2026 with great execution, driving strong sequential and year-over-year revenue growth in all our end markets, while expanding gross and operating margins. Gross margin exceeded 50%, reflecting our continued delivery of innovation across an expanding set of customers. Given our confidence in the durability of our business, we are also announcing a 20% increase in the quarterly cash dividend on the company’s common stock to $0.15 per share,” said Irving Tan, CEO of WD. “The demand drivers are clear: Virtually every AI workload, from training, inference, agentic AI to physical AI, creates data that is stored persistently and cost-efficiently on HDDs.”\n\n\nQ3FY26 Financial Highlights\n\n\n\n\n($ in millions, except per share amounts)\n\n\n\n\n\n\n\n\n \n\n\n\n\n\n\n \n\n\n\n\n\n\nGAAP\n\n\n\n\n\n\n\n\n \n\n\n\n\n\n\n \n\n\n\n\n\n\nQ3FY26\n\n\n\n\n\n\nQ2FY26\n\n\n\n\n\n\nQ3FY25\n\n\n\n\n\n\nQ/Q\n\n\n\n\n\n\nY/Y\n\n\n\n\n\n\n\n\nRevenue\n\n\n\n\n\n\n \n\n\n\n\n\n\n$3,337\n\n\n\n\n\n\n$3,017\n\n\n\n\n\n\n$2,294\n\n\n\n\n\n\n+11%\n\n\n\n\n\n\n+45%\n\n\n\n\n\n\n\n\nGross Margin\n\n\n\n\n\n\n \n\n\n\n\n\n\n50.2%\n\n\n\n\n\n\n45.7%\n\n\n\n\n\n\n39.8%\n\n\n\n\n\n\n+450 bps\n\n\n\n\n\n\n+1040 bps\n\n\n\n\n\n\n\n\nOperating Income\n\n\n\n\n\n\n \n\n\n\n\n\n\n$1,190\n\n\n\n\n\n\n$908\n\n\n\n\n\n\n$760\n\n\n\n\n\n\n+31%\n\n\n\n\n\n\n+57%\n\n\n\n\n\n\n\n\nOperating Margin\n\n\n\n\n\n\n \n\n\n\n\n\n\n35.7%\n\n\n\n\n\n\n30.1%\n\n\n\n\n\n\n33.1%\n\n\n\n\n\n\n+560 bps\n\n\n\n\n\n\n+260 bps\n\n\n\n\n\n\n\n\nDiluted Net Income Attributable to Common Shareholders\n\n\n\n\n\n\n \n\n\n\n\n\n\n$3,172\n\n\n\n\n\n\n$1,802\n\n\n\n\n\n\n$755\n\n\n\n\n\n\n+76%\n\n\n\n\n\n\n+320%\n\n\n\n\n\n\n\n\nDiluted Net Income Per Common ...