Western Digital Corporation reported significant financial growth for the fiscal year ending June 27, 2025, with net revenue reaching $9.52 billion, a 51% increase from $6.32 billion in the previous year. This growth was primarily driven by a 29% rise in average selling prices and a 15% increase in units sold, particularly in the cloud segment, which saw a 65% revenue increase. The company's gross profit also surged to $3.69 billion, up from $1.77 billion, resulting in a gross margin of 38.8%, a notable improvement from 28.1% in the prior year.
The fiscal year was marked by the completion of the separation of Western Digital's hard disk drive (HDD) and flash business units on February 21, 2025. This strategic move aimed to enhance operational efficiency and focus on distinct growth opportunities for each entity. Following the separation, Western Digital retained a 19.9% stake in Sandisk Corporation, which is now an independent public company. The company also executed a debt-for-equity exchange, disposing of 21.3 million shares of Sandisk to reduce its debt by $800 million.
Operationally, Western Digital's cloud segment accounted for 88% of total revenue, reflecting a concentrated customer base with the top ten customers contributing to 68% of net revenue. The company employed approximately 40,000 people globally, with a significant presence in Asia Pacific. The company also reported a decrease in client and consumer revenue, attributed to lower demand in those markets, which saw unit sales decline by 16% and 14%, respectively.
Looking ahead, Western Digital anticipates continued growth driven by digital transformation and the increasing demand for data storage solutions, particularly in the context of artificial intelligence. However, the company remains cautious about macroeconomic factors such as inflation, tariffs, and interest rate changes that could impact demand. The company has also initiated a quarterly cash dividend program, paying $0.10 per share, and authorized a share repurchase program of up to $2 billion, reflecting its commitment to returning value to shareholders while managing its capital structure effectively.
About WESTERN DIGITAL CORP
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