Overview

* Western Digital fiscal Q1 2026 revenue grows 27% yr/yr, beating analyst expectations

* Adjusted EPS for fiscal Q1 2026 beats consensus

* Company increases quarterly cash dividend by 25% to $0.125 per share

Outlook

* Company expects Q2FY26 revenue of $2.9 bln +/- 100 mln

* Western Digital ( WDC ) projects Q2FY26 non-GAAP EPS of $1.88 +/- $0.15

* Company anticipates Q2FY26 non-GAAP gross margin of 44% - 45%

Result Drivers

* CLOUD STORAGE DEMAND - Strong demand for data storage in the cloud drove revenue growth, per CEO Irving Tan

* AI IMPACT - AI acceleration in data creation presents new opportunities for Western Digital ( WDC ), per CEO Irving Tan

* OPERATIONAL DISCIPLINE - Co attributes achieving revenue and gross margin above guidance to operational discipline

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Beat $2.82 $2.72

Revenue bln bln (20

Analysts

)

Q1 Beat $1.78 $1.57

Adjusted (21

EPS Analysts

)

Q1 EPS $3.07

Q1 Net $1.15

Income bln

Q1 Gross 43.50%

Margin

Q1 $792 mln

Operatin

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 22 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the computer hardware peer group is "buy"

* Wall Street's median 12-month price target for Western Digital Corp ( WDC ) is $132.50, about 6.7% below its October 29 closing price of $141.38

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)