YouTube · Q4 FY2026 · 2026-07-29
WDC · NasdaqGS
Western Digital Corporation
Computer Hardware · United States
USD 313.318.3% daily changeQuote 2026-11-11 · USD
- Market cap (USD)
- US$117.28B
- Trailing P/E
- 11.02x
- Forward P/E
- 7.75x
- Quarterly revenue growth
- 55.5%
- Trailing net margin
- 69.2%
- Indicated dividend yield
- 0.2%
Snapshot 2026-11-11 · Latest financial period 2026-10-02 · Yahoo Finance. Quotes may be delayed; reporting periods can differ.
Next earnings: 2027-01-28 (provider estimate; issuer confirmation unavailable here).
Company background
Western Digital Corporation engages in the development, manufacture, and sale of data storage devices and solutions based on hard disk drive (HDD) technology in the United States, Asia, Europe, the Middle East, and Africa. The company offers internal HDDs, data center drives, data center platforms, external drives, portable drives, NAS for home and office, and accessories. It sells its data storage devices and solutions through its computer sales personnel, dealers, distributors, retailers, and subsidiaries. The company has a collaboration with Open Quantum Design for the development of quantum error correction technology and related systems to advance reliable quantum computing. Western Digital Corporation was founded in 1970 and is headquartered in San Jose, California.
Company websiteQ1 FY2027
Go beyond the headline.
WDC Stock: Record Margins, but Who Keeps the Cash? | Q1 FY2027
Published 2026-10-23
Short takes Q1 FY2027
WDC Stock: Record Margins, a Changing Share Claim | Q1 FY2027
Watch Short on YouTube
Q1 FY2027 REPORT HIGHLIGHTS
What’s changed for WDC
HOLD · 3/5. Western Digital’s HDD margins surged, but rising reinvestment and convertible dilution matter. Our $350 anchor is near the $343.67 closing quote.
HDD operating profit accelerated.
Revenue rose to $4.381B and GAAP operating income to $2.046B; the prior-year quarter had an extra week.
GAAP EPS hides the comparison.
The prior-year $611M Sandisk gain is absent now; current adjusted and GAAP net income coincide through offsetting adjustments.
Cash generation carries an investment bill.
OCF was $1.604B and gross capex $227M, leaving $1.377B free cash flow.
Buybacks do not settle the dilution question.
Roughly2.0M shares were repurchased for $1.001B while convertible exchanges issued4.7M shares.
The next guide raises the hurdle.
Q2 revenue midpoint $5.1B and adjusted EPS$5.80 contrast with a $350 valuation anchor close to the saved quote.
Comparable businesses
WDC peer comparison
Same business group first, then company size. Preferred market cap: 0.5–2x; extended range: one-third–3x. Outside that range, industry benchmarks are labeled separately and excluded from peer medians.
| Metric | WDCWestern Digital CorporationSnapshot 2026-11-11Financial period: 2026-10-02 | STXSeagate Technology Holdings plcSnapshot 2026-11-11Financial period: 2026-10-02 |
|---|---|---|
| Market capMarket value, converted to USD | US$117.28B | US$126.65B |
| Forward P/EProvider forward earnings estimate | 7.75x | 8.44x |
| EV / EBITDAEnterprise value / trailing EBITDA | 17.09x | 19.87x |
| Revenue growthLatest quarter vs prior-year quarter | 55.5% | 61.0% |
| Operating marginLatest reported quarter | 40.9% | 40.5% |
| Free cash flow yieldTrailing cash flow / market cap | 2.3% | 1.8% |
| Net debt / EBITDANet debt / trailing EBITDA | -0.06x | 0.24x |
| Debt / equityTotal debt / positive book equity | 0.10x | 0.77x |
| Trailing P/ETrailing twelve-month earnings | 11.02x | 28.93x |
| Price / bookPrice / positive book equity per share | 12.53x | 36.70x |
| EV / salesEnterprise value / trailing revenue | 7.45x | 8.45x |
| Earnings growthLatest quarter vs prior-year quarter | 50.9% | 212.3% |
| Gross marginTrailing twelve months | 52.6% | 50.4% |
| Net marginTrailing twelve months | 69.2% | 31.9% |
| Return on equityProvider trailing return; positive equity only | 129.6% | 259.4% |
| Free cash flow marginTrailing free cash flow / revenue | 18.8% | 16.6% |
| Dividend yieldIndicated annual dividend / price | 0.2% | 0.6% |
| Earnings payoutProvider trailing dividend payout | 1.9% | 15.5% |
| Current ratioCurrent assets / current liabilities | 1.43x | 1.82x |
| BetaProvider historical market sensitivity | 2.34 | 2.20 |
YouTube · Q4 FY2026 · 2026-07-29
Comparison methodology & limitations
Reviewed operating groups override broad sector classifications. Other companies are matched only within a sufficiently specific provider industry. Business mix, geography and accounting standards can still differ. Market caps are converted to USD using exchange rates captured during the snapshot refresh. Financial ratios that would mix currencies are omitted. Snapshots must be at most 14 days old and no more than seven days apart for automatic selection.
Peer medians require at least two valid similar-size peers for each metric. Negative earnings, nonpositive equity, missing data and irrelevant bank ratios are not presented as attractive valuations. A higher or lower number is not automatically a better investment. Financial statement periods are not calendar-aligned across companies.
Reported performance
Financial trends
Periods are grouped by their ending calendar year or quarter, not identical fiscal calendars. Exact period-end dates appear in tooltips and reported figures. When reporting currencies differ and a recent captured FX rate is available, money and EPS are normalized to USD for comparison. This is not a historical FX restatement. Gaps are not estimated.
Financial statements load separately from the research page.
Source: . Window ends at the latest available reporting period.
Revenue
Reported figures
Financial data & calculation notes
Standalone charts use the stated reporting currency. When a chart comparison spans currencies, money and EPS can be normalized to USD using a recent captured FX snapshot; this is for comparison only, not a historical FX restatement. Stock-based compensation is noncash. Free cash flow is operating cash flow less capital spending, which may include capitalized software. Missing metrics are not estimated or assumed to be zero. Banking and insurance ratios require industry-specific interpretation. Latest restatements may differ from figures in older episodes.
Market context
Valuation & price history
Adjusted closing price
Price history loads separately.
Price figures
Earnings-multiple scenario
Illustrative price = your earnings-per-share assumption × your P/E assumption. This is not a price target or a complete valuation model.
Starting assumptions, when available, use provider forward estimates as of 2026-11-11. Negative earnings require a different valuation method. This calculation omits balance-sheet, dilution and execution risks.
THE RESEARCH RECORD
Research history for WDC
Q1 FY20272026-10-23
FREE RESEARCH PACKET · Q1 FY2027
WDC: Record HDD Economics, but Who Keeps the Cash?
HOLD · 3/5. Western Digital’s HDD margins surged, but rising reinvestment and convertible dilution matter. Our $350 anchor is near the $343.67 closing quote.
Research published October 23, 2026 · Download original report
Read Research PacketWDC Stock: Record Margins, but Who Keeps the Cash? | Q1 FY2027
Presentation · 2026-10-23 · YouTube
Short takes Q1 FY2027
WDC Stock: Record Margins, a Changing Share Claim | Q1 FY2027
Watch Short on YouTube
Q4 FY20262026-08-06
Western Digital (WDC): It Beat, It Raised - And The Stock Fell 16%.
Presentation · 2026-08-06 · YouTube
Short takes Q4 FY2026
Western Digital beat and raised - and fell 16% #WDC #earnings
Watch Short on YouTube
Q3 FY20262026-05-01
WDC Stock: Earnings Deep Dive — Q3 FY2026 Earnings Analysis
Presentation · 2026-05-01 · YouTube
WDC Stock: Q3 FY2026 Earnings Analysis
Presentation · 2026-05-01 · YouTube