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Investing.com -- Western Digital Corp. (NASDAQ:WDC) reported fourth-quarter earnings that exceeded analyst expectations, driven by strong cloud demand and improved margins, sending shares up 4.5% following the announcement.
The data storage company posted adjusted earnings per share of $1.66 for the quarter ended June 27, beating analyst estimates of $1.47. Revenue reached $2.61 billion, surpassing the consensus forecast of $2.46 billion and jumping 30% YoY. The company’s gross margin improved significantly to 41.3% on a non-GAAP basis, up 610 basis points from the same period last year.
Western Digital also provided an optimistic outlook for the current quarter, projecting revenue between $2.6 billion and $2.8 billion, with the $2.7 billion midpoint above the $2.55 billion analyst consensus. The company expects adjusted earnings per share of $1.39 to $1.69, with the $1.54 midpoint exceeding the $1.42 consensus estimate.
"Western Digital executed well in its fiscal fourth quarter, achieving revenue and gross margin above the high end of our guidance range while delivering strong free cash flow," said Irving Tan, CEO of Western Digital. "We are confident that HDDs will continue to remain the foundation of the world’s data infrastructure, delivering unmatched value for mass storage in an AI-driven future."
During the quarter, the company reduced its debt by $2.6 billion, initiated a cash dividend of $0.10 per share, and announced a $2.0 billion share repurchase program. The dividend will be paid on September 18 to stockholders of record as of September 4.
For the full fiscal year 2025, Western Digital reported revenue of $9.52 billion, representing a 51% increase from the previous year, with non-GAAP operating income surging 578% to $2.33 billion.
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