Western Digital Reports Fiscal Q1 2027 Results: Revenue Up 55%, Guides for Over 66% Growth Next Quarter
Western Digital reported Q1 FY27 revenue of $4.38B, up 55% YoY, with non-GAAP gross margin at 58.1%. The company guided for 66-72% YoY revenue growth in Q2 FY27, reflecting strong AI storage demand.
US storage device manufacturer Western Digital Corporation (Nasdaq: WDC) reported its financial results for the first quarter of fiscal year 2027 (ended October 2, 2026) on October 22, 2026. The report shows revenue of $4.38 billion, a 55% increase year-over-year. Non-GAAP gross margin reached 58.1%, significantly expanding from 43.9% in the same period last year. Non-GAAP diluted EPS was $4.64, up 161% year-over-year. Operating cash flow was $1.60 billion, and free cash flow was $1.38 billion.
CEO Irving Tan stated that results exceeded expectations due to "robust customer demand and disciplined execution," noting the company is executing well through technology transitions to meet growing storage demand. As a key supplier of storage infrastructure in the AI data economy, Western Digital partners with leading hyperscalers, cloud service providers, and enterprises.
The outlook for the second quarter of fiscal year 2027 (Q2FY27) is even more optimistic, with expected revenue of approximately $5.1 billion (range ±$100 million), implying a year-over-year growth rate of 66% to 72%. Non-GAAP gross margin is projected at 60%-61%, and non-GAAP EPS at $5.80 (range ±$0.20). Additionally, the Board declared a quarterly cash dividend increase of 17% to $0.175 per share.
Despite beating Wall Street forecasts on both results and guidance, Seeking Alpha reported that Western Digital shares erased earlier gains and fell about 1.5% in extended trading. This may reflect cautious sentiment toward high-valuation tech stocks or concerns about the sustainability of AI infrastructure spending.