Western Digital Corporation (NASDAQ: WDC) Q4 2025 Earnings | 08/01/2025

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Western Digital Corporation delivered a standout fourth quarter for fiscal 2025, with revenue surging 30% year-over-year to $2.61 billion, exceeding expectations as robust demand for high-capacity storage solutions, particularly from the cloud segment, drove top-line growth. Non-GAAP earnings per share reached $1.66, up 22% quarter-over-quarter and surpassing consensus estimates, while GAAP diluted EPS was $0.67. The company’s non-GAAP gross margin expanded to 41.3%, marking a 610 basis point improvement year-over-year, fueled by a favorable shift to higher-capacity drives and effective cost control across manufacturing and supply chains. During the quarter, Western Digital generated $675 million in free cash flow and reduced its long-term debt by $2.6 billion, enhancing financial resilience and achieving its target leverage ratio. As of June 27, 2025, cash and equivalents stood at $2.1 billion. Reflecting confidence in continued strong cash generation, management initiated a quarterly cash dividend and authorized a $2 billion share repurchase program, with $149 million spent repurchasing shares in Q4. The cloud end market, now accounting for 90% of total revenue, climbed 36% year-over-year to $2.6 billion. High-capacity drive shipments more than doubled over the prior quarter, powered by rapid adoption of 26TB CMR and 32TB UltraSMR products. Operating expenses (non-GAAP) were $345 million, slightly higher sequentially due to increased variable compensation tied to above-target performance. Non-GAAP operating income leapt 147% year-over-year to $732 million. Looking ahead, Western Digital provided Q1 fiscal 2026 guidance calling for revenue of $2.7 billion (±$100 million), non-GAAP gross margin of 41–42%, and EPS of $1.54 (±$0.15), maintaining its view on continued market momentum fueled by cloud and generative AI adoption. Management remains optimistic about HDDs’ foundational role in global data infrastructure and reiterated its commitment to shareholder value through disciplined execution and capital returns. About Inside Ticker: For more expert analysis and real-time updates on Western Digital Corporation (NASDAQ: WDC) and other market movers, follow Inside Ticker and visit http://www.insideticker.com/ for in-depth reports, financial insights, and the latest news on leading companies. #WesternDigital #WDC #Q42025 #Earnings #FinancialResults #RevenueGrowth #CloudStorage #HighCapacityHDD #GrossMargin #NetIncome #DebtReduction #FreeCashFlow #ShareRepurchase #Dividend #TechStocks #DataInfrastructure #AI #OperationalExcellence #CashFlow #Guidance #2025Outlook #InsideTicker