AI-extracted from the 10-Q filed 2026-10-23 — Q1 FY2027 (quarter ended October 2, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Western Digital's quarterly revenue rose 55% YoY to $4.38B, with Cloud at $3.87B (88% of revenue) and gross margin expanding to 57.8% from 43.5%.
Biggest Revenue Drivers
Cloud$3.87B+54% YoY
Driven by a more than 20% increase in exabytes shipped and an approximately 25% increase in average selling price per exabyte, reflecting strong demand for high-capacity products and an improved pricing environment.
Client$320M+119% YoY
Driven by an approximately 15% increase in exabytes shipped and an approximately 90% increase in average selling price per exabyte, reflecting a shift to higher capacity drives and improved pricing.
Biggest Revenue Drivers
Total revenue: $4.38B+55% YoY
Cloud$3.87B+54% YoY
Driven by a more than 20% increase in exabytes shipped and an approximately 25% increase in average selling price per exabyte, reflecting strong demand for high-capacity products and an improved pricing environment.
Client$320M+119% YoY
Driven by an approximately 15% increase in exabytes shipped and an approximately 90% increase in average selling price per exabyte, reflecting a shift to higher capacity drives and improved pricing.
Consumer$193M+19% YoY
Reflects an approximately 70% increase in average selling price per exabyte, partially offset by an approximately 30% decrease in exabytes shipped.
Largest Expense Items
Cost of revenue$1.85B+16% YoY
Gross margin improved due to improved pricing, increased shipment volume, and a lower cost structure on newer generation products.
Selling, general and administrative$162M+17% YoY
Primarily attributable to higher compensation-related costs.
Research and development$283M-4% YoY
Decrease attributable to lower compensation-related costs.
Business realignment charges$43M+1,333% YoY
Cash-based employee termination benefits of $27M and stock-based employee termination benefits of $16M; approximately $74M more expected in the remainder of 2027.
Margins: Gross margin expanded to 57.8% from 43.5% a year earlier, attributed to improved pricing, higher shipment volume, and a lower cost structure on newer generation products. Operating margin rose to 46.7% from 28.1%.
Watch Items from the Filing
Top 10 customers accounted for 64% of net revenue, with two customers at 14% and 13%; Cloud end market represents 88% of total revenue.
Three customers represent 21%, 14%, and 12% of net accounts receivable as of October 2, 2026, up from two customers at 25% and 17% at July 3, 2026.
SPEX Technologies patent litigation: the Company has appealed the infringement finding; a loss is not considered probable and no liability has been accrued, despite a prior jury award of $316M in damages.
Revolving Credit Facility outstanding rose to $650M from $350M, with maturity in January 2027 and $600M of remaining capacity; a 1% rate increase would add $7M annual interest expense.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
8 transactions in WDC reported by 3 members of Congress under the STOCK Act, most recent trade Sep 18, 2026. Reported transactions, not recommendations.
About WESTERN DIGITAL CORP (WDC): stock profile, AI score and financials
WESTERN DIGITAL CORP (WDC) stock profile, AI quality score, and SEC EDGAR financial data, a Technology sector company. 13F Pro's AI-powered ranking engine scores WDC at 81.7/100 on a composite quality score built from its SEC filings, placing it at rank #18 of 2,925 stocks — the top 1% of the AI-ranked universe. WDC scores in the top quartile across balance sheet strength (99.7), profitability (98.9), revenue growth (92.0). Areas of concern include earnings quality (29.6), which score below median versus the broader universe. Shareholder dilution risk is elevated at 43.7/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q1 2027), WESTERN DIGITAL CORP reports quarterly revenue of $4.4B, net income of $1.8B, an operating margin of 46.7%. Top institutional holders of WDC by reported 13-F value include BlackRock, FMR, VANGUARD CAPITAL MANAGEMENT, based on the most recent SEC filings. WDC trades on the Nasdaq exchange and files with the SEC under CIK 106040. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate WDC daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for WESTERN DIGITAL CORP directly from SEC EDGAR.