Western Digital Corporation reported significant financial growth for the fiscal year ending July 3, 2026, with net revenue reaching $12.9 billion, a 36% increase from $9.5 billion in the previous year. This growth was primarily driven by a 25% rise in exabytes sold and an 8% increase in average selling prices (ASPs) per exabyte. The cloud segment, which constitutes 89% of total revenue, saw a 38% increase, reflecting strong demand for high-capacity enterprise products. The company's gross profit also rose to $6.3 billion, resulting in a gross margin of 48.9%, up from 38.8% the previous year.
In terms of operational changes, Western Digital completed the separation of its Flash business, Sandisk, in February 2025, allowing it to focus solely on its hard disk drive (HDD) operations. This strategic move is expected to enhance operational efficiency and innovation. The company also engaged in significant capital allocation actions, including a share repurchase program that authorized the buyback of up to $6 billion in common stock, of which $2.59 billion was utilized during the fiscal year. Additionally, Western Digital paid $174 million in dividends, reflecting its commitment to returning value to shareholders.
The company’s workforce stood at approximately 40,000 employees as of the end of fiscal 2026, with a significant presence in Asia Pacific, where about 88% of its employees are located. Western Digital's international sales accounted for 60% of its net revenue, highlighting its global reach. The company continues to invest in research and development, with R&D expenses increasing by 17% to $1.16 billion, as it aims to innovate and meet the growing demands of the data storage market.
Looking ahead, Western Digital anticipates continued growth driven by the increasing demand for data storage solutions, particularly in cloud environments and AI-driven applications. The company is focused on enhancing its product offerings and expanding its market share, while also managing its supply chain and operational efficiencies to mitigate risks associated with market fluctuations and customer demand variability. The outlook remains positive, with expectations for sustained revenue growth and improved profitability in the coming fiscal periods.
About WESTERN DIGITAL CORP
Western Digital Corporation is a leading provider of data storage devices and solutions, primarily manufacturing hard disk drives (HDDs) for cloud, enterprise, client, and consumer markets. Its products enable reliable, high-capacity storage for digital infrastructure, supporting cloud data centers, edge computing, and personal content. The company emphasizes innovation, cost efficiency, and global manufacturing to maintain its competitive position in the data-driven economy.
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