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10-K annual report · filed Aug 14, 2025

Western Digital (WDC) FY2025 10-K Annual Report

WDC overviewOriginal on SEC EDGAR
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Western Digital (WDC) filed its fiscal 2025 10-K annual report with the SEC on Aug 14, 2025. It reported revenue of $9.5B (−26.8% year over year) and net income of $1.9B.

  • Top risk flagged: Internal Revenue Service audit uncertainty with potential significant unrecognized tax benefits impacting financials

FY2025 key financial metrics · XBRL

Revenue
$9.5B
−26.8% YoY
Net income
$1.9B
+336.7% YoY
Operating margin
24.5%
+27.0 pp YoY
Gross margin
38.8%
+16.1 pp YoY
EPS (diluted)
$5.12
+296.2% YoY
ROE
35.6%
+42.9 pp YoY
Operating cash flow
$1.7B
+675.2% YoY

Source: XBRL data from the Western Digital (WDC) FY2025 10-K on SEC EDGAR. USD.

Western Digital FY2025 10-K analysis

AI summary of each section, grounded in the filing text

Business Overview

  • Core business model: Developer and manufacturer of hard disk drive (HDD) technology for data storage in cloud, enterprise, edge, and consumer markets
  • Strategic separation of HDD and Flash units on Feb 21, 2025, creating independent Western Digital (HDD) and Sandisk (Flash) companies
  • Emphasis on HDD as the preferred economical storage solution amid accelerated data creation and AI growth, targeting large cloud data centers
  • Employee count approximately 40,000 worldwide at end of 2025, with 88% in Asia Pacific and strong focus on workforce upskilling and diversity
  • Named one of the World’s Most Ethical Companies by Ethisphere for the 7th consecutive year, with over half employees participating in volunteer events

Management Discussion & Analysis

  • Revenue $9.52B, up 51% YoY from $6.32B in 2024, driven by 29% higher ASP and 15% higher units sold, mainly in Cloud segment
  • Operating margin 24.5% vs (6.4%) in 2024, gross margin 38.8% vs 28.1%, improvement driven by cost efficiencies and better product mix
  • Best performing segment Cloud revenue $8.34B up 65% YoY; worst performing Consumer revenue $623M down 9% YoY
  • Operating cash flow $1.69B in 2025 vs ($294M) in 2024; capital expenditures $412M; $149M share repurchases; $36M dividends paid
  • Management highlights Separation of HDD and Flash businesses completed Feb 2025; expects 4%-6% of revenue in capex for fiscal 2026; monitors macro risks like tariffs and inflation

Risk Factors

  • Internal Revenue Service audit uncertainty with potential significant unrecognized tax benefits impacting financials
  • Cloud end market concentration: 88% of total revenue, top 3 customers each >10% net revenue increasing customer dependence
  • Supply chain risk from reliance on suppliers, long component lead-times causing potential excess inventory and manufacturing underutilization charges ($155M in 2024)
  • Intense price competition from rivals offering products below cost and government-supported manufacturers disrupting market position
  • Convertible notes $1.6B convertible starting Aug 2028 classified as current debt due to triggered conversion feature increasing near-term liquidity risk

Generated from the filing text; verify against the original. How to read a 10-K

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