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How Western Digital (WDC) makes money

Western Digital (WDC) made $4.4B of revenue in the first quarter fiscal 2027 (Q1 FY27), +55% from a year earlier. Cloud brought in $3.9B (88%); Client brought in $320M (7%); Consumer brought in $193M (4%). Of every dollar of revenue, 58¢ was left as gross profit, 47¢ was left as operating profit, 41¢ was left as net earnings.

Drawing the Sankey…

Western Digital revenue by segment, Q1 FY27Western Digital revenue by segment, Q1 FY27Cloud$3.9BClient$320MConsumer$193M
Western Digital: revenue by line, Q3 FY25 to Q1 FY27Western Digital: revenue by line, Q3 FY25 to Q1 FY27CloudConsumerClientClient DevicesCloud: $3.9B latest$3.9BConsumer: $193M latestClient: $320M latest$320MClient Devices: $0 latestQ3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Consumer went from 7% of revenue in Q3 FY25 to 4% in Q1 FY27, the largest shift in the mix.
Western Digital revenue by quarterWestern Digital revenue by quarter$2.3BQ3 FY25$2.6BQ4 FY25$2.8BQ1 FY26$3.0BQ2 FY26$3.3BQ3 FY26$3.7BQ4 FY26$4.4BQ1 FY27
Western Digital: where each dollar of revenue goesWestern Digital: where each dollar of revenue goesCost of revenue42¢Gross profit58¢Operating expenses11¢Operating profit47¢Income tax6¢Net earnings41¢Operating cash flow37¢Free cash flow31¢

Revenue by segment, Q1 FY27

SegmentRevenueShareQ/QY/Y
Cloud$3.9B88.3%+16%+54%
Client$320M7.3%+42%+119%
Consumer$193M4.4%+3%+19%

Where each dollar of revenue goes

LineQ1 FY27% of revenue
Revenue$4.4B100.0%
Cost of revenue$1.8B42.2%
Gross profit$2.5B57.8%
Operating expenses$488M11.1%
Operating profit$2.0B46.7%
Income tax$259M5.9%
Net earnings$1.8B40.6%
Operating cash flow$1.6B36.6%
Free cash flow$1.4B31.4%

Revenue, quarter by quarter

QuarterRevenueY/Y
Q1 FY27$4.4B+56%
Q4 FY26$3.7B+44%
Q3 FY26$3.3B+46%
Q2 FY26$3.0B+25%
Q1 FY26$2.8B+27%
Q4 FY25$2.6B+30%
Q3 FY25$2.3B+31%

From Western Digital's 10-Q filed Oct 23, 2026 (on EDGAR).

Questions

How does Western Digital make money?

Western Digital (WDC) made $4.4B of revenue in the first quarter fiscal 2027 (Q1 FY27), +55% from a year earlier. Cloud brought in $3.9B (88%); Client brought in $320M (7%); Consumer brought in $193M (4%). Of every dollar of revenue, 58¢ was left as gross profit, 47¢ was left as operating profit, 41¢ was left as net earnings.

What is Western Digital's biggest business?

Cloud: $3.9B in the first quarter fiscal 2027, 88% of revenue, +54% from a year earlier.

What is Western Digital's profit margin?

Net earnings were $1.8B, 40.6% of revenue, in the first quarter fiscal 2027; the operating margin was 46.7%.

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Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.