Western Digital (WDC) Q1 2026 10-Q Quarterly Report

Filed: Jan 30, 2026Period ending Jan 2, 2026
Industrials
Computer Storage DevicesSEC EDGAR

Western Digital (WDC) 10-Q quarterly report for Q1 2026, filed with SEC EDGAR on Jan 30, 2026 for the fiscal period ending Jan 2, 2026. This page provides AI-powered analysis including management discussion & analysis (MD&A), risk factor updates, and key quarterly financial data such as revenue and net income extracted from XBRL.

Western Digital Q1 2026 10-Q Analysis

Management Discussion & Analysis

  • Revenue $3.02B, up 25% YoY from $2.41B; driven by 22% growth in exabytes sold and 2% ASP increase
  • Gross margin 45.7% vs 37.7% YoY; gross profit increased $473M due to improved pricing and lower cost structure
  • Cloud segment best performer: revenue $2.67B, up 28%; Consumer worst: revenue down 3% YoY
  • Operating income margin 30.1% vs 23.2% YoY; operating expenses 15.6% of revenue vs 14.4% prior year
  • Operating cash flow $1.42B for 6 months; share repurchases $1.17B; net cash down $139M; $1.1B unrealized gain on Sandisk stake boosted income
  • Management optimistic on cloud demand, AI-driven growth; monitoring tariff uncertainties; expects modest R&D increase; dividend declared $0.125/share post-quarter

Risk Factors

  • No newly added risk factors this quarter; section states no material changes from 2025 10-K
  • Most significant carried-forward risk: market demand volatility impacting revenue and profitability
  • Regulatory compliance risk: ongoing adherence to export control and trade sanctions laws remains critical
  • Operational risk: supply chain disruptions could adversely affect product availability and costs
  • Financial risk: exposure to currency fluctuations affecting international sales and expenses

Western Digital Q1 2026 Quarterly Financials
XBRL

Revenue

$3.0B

-29.6% YoY +7.1% QoQ

Net Income

$1.8B

+210.1% YoY +55.8% QoQ

Net Margin

61.1%

+4719bp YoY +1911bp QoQ

Source: XBRL data from Western Digital Q1 2026 10-Q filing on SEC EDGAR. All figures in USD.

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