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Western Digital (WDC) Q1 FY26 earnings results (first quarter fiscal 2026)
10-Q filed Oct 31, 2025
Western Digital (WDC) reported revenue of $2.8B for the first quarter fiscal 2026 (Q1 FY26), +27% from a year earlier and +8% from the quarter before. Operating margin was 28.1%, net earnings $1.2B (41.9% of revenue).
Western Digital, Q1 FY26: revenue $2.8B (+27% year over year), operating margin 28.1%, net earnings $1.2B, operating cash flow $672M. The chart follows the revenue to costs, profit and cash.
| Q1 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $2.8B | +8% | +27% |
| Gross profit | $1.2B | +15% | +52% |
| Operating profit | $792M | +16% | +137% |
| Net earnings | $1.2B | +319% | +140% |
| Operating cash flow | $672M | -10% | 20× |
| Free cash flow | $599M | -11% | — |
What changed
Revenue was $2.8B in Q1 FY26, up 27% year over year and up 8% from the previous quarter. Cloud was the largest line at 89% of revenue. Cloud added $0.60B year over year (up 31%), 99% of the total change. Consumer declined 1%.
Gross margin was 43.5%, up 7.1 points from a year earlier. Operating profit was $0.79B, a 28.1% margin (up 13.0 points year over year). Of the extra revenue versus a year earlier, 76% reached operating profit, above the 15% margin then. Operating expenses fell 8% while revenue rose 27%. The fastest-growing cost line was Research & development (+12%). Net earnings were $1.2B, up 140% year over year. The effective tax rate was 11.6%. Non-operating items added $0.55B, 41% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $0.67B (up 1876% year over year), 57% of net earnings. Non-cash charges added back $0.09B of depreciation and amortization and $0.05B of share-based compensation. Working capital and other items used $0.65B. Capital expenditures of $0.07B left free cash flow of $0.60B.
Questions
What was Western Digital's revenue in the first quarter fiscal 2026?
Western Digital (WDC) reported revenue of $2.8B for the first quarter fiscal 2026 (Q1 FY26), +27% from a year earlier and +8% from the quarter before.
Was Western Digital profitable in the first quarter fiscal 2026?
Operating profit was $792M (28.1% of revenue) and net earnings $1.2B.
Source: Western Digital 10-Q on SEC EDGAR.