Western Digital Q4 Earnings Beat Estimates as FY2027 Outlook Tops Expectations

Western Digital (NASDAQ: WDC) reported stronger-than-expected fiscal fourth-quarter results on Wednesday, surpassing Wall Street estimates for both earnings and revenue while issuing an optimistic outlook for the first quarter of fiscal 2027.

The data storage company posted adjusted earnings per share of $3.56, exceeding analysts’ consensus estimate of $3.29. Quarterly revenue reached $3.75 billion, beating expectations of $3.69 billion and marking a 44% year-over-year increase. Adjusted EPS also more than doubled compared with the same quarter last year, reflecting improved profitability and strong demand across storage markets.

For the first quarter of fiscal 2027, Western Digital expects earnings per share between $3.85 and $4.15, above the analyst consensus of $3.77. The company also forecast revenue of $4.0 billion to $4.2 billion, compared with Wall Street’s estimate of $4.04 billion. At the midpoint, management expects $4.1 billion in revenue, $4.00 in non-GAAP EPS, and a non-GAAP gross margin of 55% to 56%.

CEO Irving Tan said the company closed fiscal 2026 with strong momentum, driven by expanding global demand for data storage, higher gross and operating margins, and disciplined execution across its business. He noted that the company delivered solid financial performance throughout the quarter while continuing to benefit from favorable market conditions.

For the full fiscal year 2026, Western Digital generated $12.92 billion in revenue, representing 36% growth from the previous year. Non-GAAP diluted earnings per share climbed to $10.22, more than doubling from $5.02 reported in fiscal 2025.

The company also announced a quarterly cash dividend of $0.15 per share, payable on September 17, 2026, to shareholders of record as of September 8, 2026.

Despite the earnings beat and stronger-than-expected guidance, Western Digital stock fell after the announcement. Shares closed down 5.36% during the regular trading session before extending losses in after-hours trading, as investors reacted to the results and outlook.