Western Digital (NASDAQ: $WDC), which designs, manufactures, and sells data storage solutions, released its Q1 fiscal 2026 results on Thursday, October 30, 2025, after markets closed. Following the release of the results, the stock soared to new heights, continuing its upward trajectory. Here is a deep dive into the Q1 results.
Western Digital ($WDC) Q1 Results
For the third quarter, Western Digital reported revenue of $2.82 billion, a 27% YoY increase. Meanwhile, adjusted EPS came in at $1.78, a 137% YoY increase. It reported a non-GAAP gross margin of 37.3%, a +660-bps increase YoY.
The company reported a non-GAAP operating income of $407 million in Q1. For the quarter, it reported $627 million in cash flow from operations, and $599 million in free cash flow, up from a -$61 million in free cash flow last year. Western Digital declared a cash dividend of $0.125 per share of the company’s common stock.
Q2 Fiscal 2026 Outlook
Commenting on the outlook, Western Digital CFO Kris Sennesael, stated that they “expect continued revenue growth driven by data center demand, and improved profitability led by the adoption of our high-capacity drives.”
Western Digital expects non-GAAP revenue of $2.9B +/- $100M in Q2 fiscal 2026, and a non-GAAP gross margin of 44% – 45%. The company forecast non-GAAP operating expenses of $365M – $375M. It expects an adjusted EPS of $1.88 +/- $0.15 in Q2 fiscal 2026.
Western Digital (WDC) Stock Performance
Following the release of its Q1 results, $WDC shares soared 8.37% on Friday, October 31, 2025, to $149.70 as of 10:15 AM in New York. Year to date, the stock is up 232.29%, while over the past year, the stock has gained 203.29%. In the past six months alone, $WDC shares have gained 241.47%.
Analysts are optimistic about the future of $WDC stock, giving it a strong buy rating. They forecast an average price of $142.44, which is a 3.96% downside based on the most recent price. The analysts forecast a wide range of prices, with a high of $200 and a low of $62 for $WDC.
Is $WDC A Buy
Western Digital (WDC) currently has momentum behind it. With triple-digit gains in the past year, it is undoubtedly worth keeping a close eye on. Both its top and bottom-line performance showed marked improvement in Q1. Its free cash flow position has also seen a major improvement.
With AI demand and cloud adoption rising, its storage solutions are expected to continue seeing rising demand. With a PE Ratio (TTM) of 33.66, it is much cheaper than the average for the S&P 500 Technology Sector PE Ratio (TTM) of 49.19.
Based on its recent performance and expected demand in cloud and AI, adding $WDC to your portfolio could potentially deliver respectable medium-term returns.
Click Here for Updates on WDC – It’s 100% FREE to Sign Up for Text Message Notifications!
Disclaimer: This website provides information about cryptocurrency and stock market investments. This website does not provide investment advice and should not be used as a replacement for investment advice from a qualified professional. This website is for educational and informational purposes only. The owner of this website is not a registered investment advisor and does not offer investment advice. You, the reader / viewer, bear responsibility for your own investment decisions and should seek the advice of a qualified securities professional before making any investment. Please read our Full Disclaimer: https://dexwirenews.com/disclaimer/
