"The positives were everywhere in this report. Revenue jumped 27% year over year, operating income surged 137%, and free cash flow hit $599 million. CEO Irving Tan credited "strong demand driven by growth of data storage in the cloud" and pointed to AI accelerating data creation. Western Digital also raised its dividend 25% to $0.125 per share. The company's turnaround from losses two years ago to strong profitability continues to impress."
"Western Digital ( NASDAQ: WDC) reported fiscal Q1 2026 earnings after the close today, and investors were thrilled with yet another beat. The stock popped in after-hours trading by almost 10% after the earnings report went live. Revenue came in at $2.82 billion (beating estimates by $90 million), while adjusted EPS hit $1.78 (versus $1.58 expected)."
"The only real concern was the balance sheet restructuring from the recent Sandisk separation. Total assets dropped 42% year over year, and shareholders' equity fell 50%. These aren't operational problems. They're structural changes from splitting the flash business. Still, you'll want to watch how management rebuilds the balance sheet going forward."
Western Digital reported fiscal Q1 2026 revenue of $2.82 billion, beating estimates by $90 million, and adjusted EPS of $1.78 versus $1.58 expected. Revenue rose 27% year over year, operating income increased 137%, net income jumped 140%, and free cash flow reached $599 million. Management raised the dividend 25% to $0.125 per share and guided Q2 revenue to about $2.9 billion with EPS around $1.88. CEO Irving Tan cited strong cloud-driven demand and AI-accelerated data creation, emphasizing high-capacity drives for data centers. Total assets and shareholders' equity fell due to the Sandisk separation, reflecting structural balance-sheet changes rather than operational weakness.
Read at 24/7 Wall St.
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