Western Digital Corporation reported Q4 revenue of $3.75 billion, up 44% year-over-year, but shares fell 15% due to earnings miss, impacting investor sentiment.

Key Highlights

  • Price · Mkt cap $183.7 billion · Next catalyst: Q1FY27 earnings
  • Western Digital Corporation reported its Q4 results
  • The company reported GAAP and non-GAAP results
  • The company provided guidance for Q1FY27

Western Digital Corporation (NASDAQ: WDC) reported its Q4 2026 results. The company's GAAP gross margin was 54.1%, while non-GAAP gross margin was 54.4%. Western Digital Corporation reported GAAP diluted EPS of $8.21 and non-GAAP diluted EPS of $3.56.

Revenue Growth

The company's revenue growth was driven by demand for its products. Western Digital Corporation's operating income was $1,563, with an operating margin of 41.7%. This represents a significant increase from the previous year.

As a result, investors are closely watching the company's ability to sustain growth momentum.

Segment Performance

The company's segment performance was strong. The GAAP gross margin and non-GAAP gross margin were notable, indicating the company's ability to maintain profitability. Western Digital Corporation's cash flow from operations was $1.39 billion, with free cash flow of $1.28 billion.

This strong cash generation is expected to support the company's future growth initiatives. However, the company's shares fell, indicating that investors are cautious about the company's ability to meet future expectations.

Guidance

Western Digital Corporation provided guidance for Q1FY27. The company's management indicated that demand for its products is expected to continue, driving revenue growth. However, the company's shares are down over the past month, indicating that investors are waiting for the company to deliver on its guidance.

Market Reaction

The market reaction to Western Digital Corporation's Q4 results was mixed, with shares falling. The company's shares are up year-to-date, but the recent decline indicates that investors are cautious about the company's ability to sustain growth momentum. Sector peers also saw mixed performance.

As the company prepares to report its Q1FY27 earnings, investors will be closely watching its ability to deliver on its guidance and sustain growth momentum. According to the EX-99.1 filed with the EXCHANGE COMMISSION WASHINGTON, D.C. 20549, the company can be reached at 408 ) 717- 6000. The announcement is dated August 5, 2026.

Peers Moving on This News

  • Apple Inc (AAPL) up 0.9%
  • Dell Technologies Inc (DELL) down 0.8%
  • Sandisk Corp (SNDK) down 9.1%

Analysis based on company disclosures and public reporting; figures verified against the source and live market data.

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.