Short answer
Western Digital (WDC) filed its fiscal 2026 10-K annual report with the SEC on Aug 14, 2026. It reported revenue of $12.9B (+35.7% year over year) and net income of $9.4B.
- Top risk flagged: Regulatory risk from tax law changes: U.S. One Big Beautiful Bill Act 2025 and OECD global minimum tax of 15% could materially impact effective tax rate
FY2026 key financial metrics · XBRL
- Revenue
- $12.9B
- +35.7% YoY
- Net income
- $9.4B
- +398.9% YoY
- Operating margin
- 34.5%
- +10.0 pp YoY
- Gross margin
- 48.9%
- +10.1 pp YoY
- EPS (diluted)
- $24.28
- +374.2% YoY
- ROE
- 106.3%
- +70.7 pp YoY
- Operating cash flow
- $3.9B
- +132.3% YoY
Source: XBRL data from the Western Digital (WDC) FY2026 10-K on SEC EDGAR. USD.
Western Digital FY2026 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business model centered on designing and manufacturing high-capacity HDD data storage solutions for cloud, client, and consumer markets
- Emphasis on advanced HDD technologies in commercial volumes, including ePMR, OptiNAND, UltraSMR, HAMR, and triple stage actuators
- Strategic focus sharpened on leadership in cost-efficient, scalable storage solutions supporting AI-driven data economy
- Workforce stable at approximately 40,000 employees globally, with 88% located in Asia Pacific, ongoing investment in AI skills training
- Notable sustainability achievements: 66% carbon-free energy in 2025, 31% emissions reduction per petabyte since 2020, and inclusion in 2026 S&P Dow Jones Best-in-Class Index
Management Discussion & Analysis
- Revenue $12.92B, up 36% YoY from $9.52B in 2025, driven by 25% exabyte volume increase and 8% ASP growth
- Gross margin 48.9% vs 38.8% in 2025, operating margin 34.5% vs 24.5% YoY, net income $9.42B vs $1.64B
- Cloud segment best performer: $11.49B revenue, 38% growth; Consumer segment slowest: 13% growth on $648M revenue
- Cash flow: Operating $3.93B, Investing uses $429M (capex $418M), Financing uses $4.03B including $2.59B share repurchases and $184M dividends
- Management expects 4-6% of net revenue in annual capex, strong demand outlook, notes risks from global minimum tax and supply chain
Risk Factors
- Regulatory risk from tax law changes: U.S. One Big Beautiful Bill Act 2025 and OECD global minimum tax of 15% could materially impact effective tax rate
- Geopolitical threat from China’s export restrictions on rare earth minerals critical to semiconductor and HDD manufacturing, increasing costs and supply constraints
- Supply chain risk from sole-source suppliers and industry consolidation causing potential shortages, cost increases or quality issues
- Competitive risk from technology shifts including AI impact on storage demand and competitors entering new product areas with broader offerings
- Financial risk from $2028 Convertible Senior Notes classified as current debt, with conversion possibly diluting stockholders and reducing cash availability
Generated from the filing text; verify against the original. How to read a 10-K
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