Western Digital tops estimates, offers guidance; shares fall

Investing.com -- Western Digital Corporation reported fourth quarter earnings per share of $3.56 on Wednesday, beating analyst expectations of $3.29 by $0.27. The data storage company posted revenue of $3.75 billion for the quarter, above the consensus estimate of $3.69 billion.

The company's fiscal fourth quarter revenue increased 44% compared to the same period last year. Adjusted earnings per share more than doubled on a year-over-year basis.

For the first quarter of fiscal 2027, Western Digital projects earnings per share between $3.85 and $4.15, compared to analyst consensus of $3.77. The company expects revenue in the range of $4 billion to $4.2 billion, versus consensus of $4.04 billion.

At the midpoint of guidance, Western Digital forecasts first quarter revenue of $4.1 billion and non-GAAP earnings per share of $4.00. The company anticipates non-GAAP gross margin between 55% and 56% for the quarter.

"WD concluded fiscal year 2026 with strong performance. In our fiscal fourth quarter, revenue increased 44% year over year, gross and operating margins expanded, and earnings per share more than doubled," said Irving Tan, CEO of WD.

Western Digital attributed the results to expanding global storage demand, improved gross and operating margins, and operational discipline across end markets.

For fiscal year 2026, the company reported revenue of $12.92 billion, up 36% from the prior year. Non-GAAP diluted earnings per share reached $10.22, compared to $5.02 in fiscal 2025.

The company's board declared a quarterly cash dividend of $0.15 per share, payable on September 17, 2026 to shareholders of record as of September 8, 2026.

Shares of Western Digital traded approximately 7.8% lower following the earnings report.

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