Western Digital (WDC) revenues increased in the first quarter of fiscal year 2027 by 55.5% y/y to 4.38 billion USD, and earnings per share (GAAP) increased by 50.8% y/y to 4.63 USD.

Quarterly results#

Adjusted earnings per share was 4.64 USD, representing a 160.7% y/y increase compared to 1.78 USD a year earlier.

Company guidance#

In the second quarter of 2027, the company expects revenues in the range of 5.00 billion USD – 5.20 billion USD (an increase of 66.0% – 72.0%) and adjusted earnings per share at the level of 5.60–6.00 USD.

Management commentary#

Management emphasized that the gross margin growth is permanent and is driven by pricing, higher recording density, and customers transitioning to higher capacity drives. According to management, the pricing environment is favorable, allowing for further increases in price per terabyte, including deliveries outside of long-term agreements. Management noted that customers highly rate the new HAMR drives due to their low failure rate, which provides confidence regarding the completion of their qualification process. According to management, the company does not intend to increase the number of drives produced, but is focusing on growth through higher recording density, and any potential slowdown among new AI cloud providers would not pose a serious problem due to sustained demand.