Western Digital Reports 45% Revenue Growth to $3.34 Billion in Latest Quarter

Western Digital Corporation reported significant financial growth in its latest quarterly results, with net revenue reaching $3.34 billion for the three months ended April 3, 2026, a 45% increase from $2.29 billion in the same period last year. For the nine months ending April 3, 2026, revenue totaled $9.17 billion, up 33% from $6.92 billion in the prior year. The company attributed this growth to a 34% increase in exabytes sold and a 9% rise in average selling price per exabyte, driven by strong demand across its cloud, client, and consumer markets.

The company’s gross profit also saw a substantial increase, rising to $1.68 billion for the latest quarter, compared to $912 million a year earlier, resulting in a gross margin of 50.2%, up from 39.8%. Operating income for the quarter was reported at $1.19 billion, a 57% increase from $760 million in the previous year. The nine-month operating income also improved significantly to $2.89 billion, compared to $1.65 billion in the prior year. This performance was bolstered by a lower cost structure on newer generation products and improved pricing.

In terms of strategic developments, Western Digital completed the separation of its Flash business, Sandisk, on February 21, 2025, allowing it to focus solely on its HDD operations. The company has since monetized portions of its retained interest in Sandisk, using shares to reduce debt significantly. As of April 3, 2026, Western Digital held 1.7 million shares of Sandisk, which it plans to monetize further. The company also executed a series of transactions to optimize its capital structure, including a $1.5 billion bridge loan to facilitate a debt-for-equity exchange.

Operationally, Western Digital reported that its top ten customers accounted for 71% of its net revenue for the latest quarter, an increase from 73% in the previous year. The company’s revenue by geography showed strong growth, particularly in Asia and Europe, where demand for data center capacity is increasing. The company’s employee headcount remained stable, reflecting its focus on efficiency and strategic growth.

Looking ahead, Western Digital anticipates continued demand for data storage driven by the growth of cloud services and artificial intelligence applications. The company is actively monitoring macroeconomic conditions, including trade policies that could impact its operations. Management expressed confidence in its ability to navigate these challenges while maintaining a strong financial position, supported by its cash reserves and available credit facilities.