Summary: Western Digital delivered fiscal fourth quarter results that exceeded estimates on earnings and revenue, offered upbeat guidance for the first quarter of fiscal 2027 and reported substantial full-year gains for fiscal 2026. The company announced a quarterly cash dividend. Market response to the release was negative, with shares trading lower after the report.
Quarterly results
Western Digital Corporation reported fourth quarter earnings per share of $3.56, surpassing the analyst consensus of $3.29 by $0.27. The company's revenue for the quarter totaled $3.75 billion, ahead of the $3.69 billion consensus estimate. On a year-over-year basis, fiscal fourth quarter revenue rose 44% compared with the same period a year earlier, and adjusted earnings per share more than doubled versus the prior-year quarter.
Guidance for fiscal Q1 2027
For the first quarter of fiscal 2027, Western Digital issued guidance calling for non-GAAP earnings per share in a range of $3.85 to $4.15, compared with the analyst consensus of $3.77. Revenue guidance was set between $4.0 billion and $4.2 billion, versus a consensus of $4.04 billion. At the midpoint, the company projects first-quarter revenue of $4.1 billion and non-GAAP earnings per share of $4.00. Western Digital also expects non-GAAP gross margin in the first quarter to be between 55% and 56%.
Management commentary
"WD concluded fiscal year 2026 with strong performance. In our fiscal fourth quarter, revenue increased 44% year over year, gross and operating margins expanded, and earnings per share more than doubled," said Irving Tan, CEO of WD. The company attributed the quarterly outcome to expanding global storage demand, improved gross and operating margins, and operational discipline across end markets.
Fiscal year 2026 results
For fiscal year 2026, Western Digital reported revenue of $12.92 billion, an increase of 36% from the prior year. Non-GAAP diluted earnings per share for the full year reached $10.22, compared with $5.02 in fiscal 2025.
Dividend and market reaction
Western Digital's board declared a quarterly cash dividend of $0.15 per share, payable on September 17, 2026, to shareholders of record as of September 8, 2026. Following the earnings announcement, shares of Western Digital traded approximately 7.8% lower.
Conclusion
The company's reported results and forward guidance show year-over-year revenue growth and expanded margins, and management highlighted demand and operational discipline as driving factors. Despite beating near-term estimates and setting a first-quarter outlook above consensus, the stock moved lower after the release.