Western Digital is held in the US Growth Portfolio. The company reported fiscal fourth quarter and full year results after the close on Wednesday 5 August.

Revenue rose 44 percent year on year to $3.75 billion, ahead of the $3.70 billion consensus and above the company’s own $3.65 billion guidance midpoint. Non-GAAP diluted earnings per share of $3.56 beat the $3.31 estimate and more than doubled from $1.70. GAAP diluted EPS of $8.21 includes roughly $2.05 billion of gains on the retained Sandisk stake, which Western Digital no longer holds. 

Margins expanded sharply. Non-GAAP gross margin reached 54.4 percent, up 13.1 points year on year and 290 basis points above guidance, and the non-GAAP operating margin reached 44.2 percent. The company shipped 231 exabytes, up 22 percent, of which 209 exabytes were nearline, up 23 percent. Cloud accounted for 89 percent of revenue, a share that has held near that level for five quarters. Western Digital began shipping ePMR drives up to 40 terabytes. 

For the full year, revenue rose 36 percent to $12.92 billion and non-GAAP EPS reached $10.22 against $5.02. Free cash flow reached $3.51 billion. The company repurchased $2.59 billion of stock across the year, declared a dividend of $0.15 per share payable 17 September, and finished with no long-term debt against $2.49 billion a year earlier. 

Guidance beat but decelerated. First quarter revenue of $4.1 billion plus or minus $100 million sits about 1 percent above consensus, and EPS of $4.00 plus or minus $0.15 about 4 percent above. Sequential revenue growth slows to 9.4 percent from 12.3 percent, gross margin expansion slows to 110 basis points from 390, and EPS growth slows to 12.4 percent from 30.9 percent. Chief executive Irving Tan said the company enters fiscal 2027 “with continued confidence in the durability of demand and with increasing visibility into our business”. 

Shares closed down 5.4 percent at $519.17, then fell about a further 10 to 11 percent after hours to around $461. The stock had nearly tripled during 2026 ahead of the print.