EL7.AI
StocksMediumUpdated•Originally published 12 September 2026•Updated 12 September 2026•
2 min read

Western Digital Q4 Revenue Jumps 44% as Cloud Reaches 89% of Sales

Key Facts

1Fourth-quarter revenue reached $3.747 billion, up 44% year over year.
2The Cloud end market accounted for 89% of fourth-quarter revenue.
3Gross margin was 54.1% on a GAAP basis and 54.4% on a non-GAAP basis.
4For fiscal Q1 2027, the company expects revenue of $4.0 billion to $4.2 billion and non-GAAP gross margin of 55% to 56%.

Western Digital said on August 5, 2026, that revenue for its fiscal 2026 fourth quarter, ended July 3, 2026, reached $3.747 billion, up 44% year over year from $2.605 billion.

The earnings presentation showed that the Cloud end market generated 89% of fourth-quarter revenue. The company linked storage growth to cloud demand and AI and hybrid-data workloads, which are increasing the need for high-capacity hard drives.

GAAP gross margin reached 54.1% in the quarter, compared with 41.0% a year earlier. Non-GAAP gross margin rose to 54.4% from 41.3%.

Company filings show that fiscal 2026 profitability improved for several reasons: higher shipment volumes, a better cost structure for newer products, a shift toward higher-capacity drives and improved pricing. Together, these factors helped lift full-year gross margin by 10.1 percentage points from fiscal 2025.

For fiscal 2026, Cloud revenue rose 38% to $11.49 billion and represented 89% of net revenue. The top 10 customers generated 73% of revenue, making sustained spending by major cloud providers both an important growth factor and a concentration risk.

For fiscal Q1 2027, Western Digital expects revenue of $4.0 billion to $4.2 billion, non-GAAP gross margin of 55% to 56%, and adjusted earnings of $3.85 to $4.15 per share. These figures are forward-looking guidance, not reported results.

WDC closed at $447.18 on September 11, 2026, within a session range of $442.78 to $472.43. Because the results were released on August 5, 2026, the September move should not be described as an immediate earnings reaction; investors instead need to track delivery against guidance and the durability of cloud demand as the company acknowledges that AI's effect on storage remains difficult to forecast.