Western Digital Revenue Reaches $4.38 Billion, Exceeding Prior Quarterly Guidance
Key Facts
Western Digital reported quarterly revenue of $4.38 billion on October 22, 2026, exceeding the $4.1 billion midpoint of its previous guidance range, according to results reported by Investing.com and the company's earlier announcement. Earnings per share for the reported quarter were $4.64, compared with the company's previous target of $4.00 on an adjusted basis. The company had set those two targets for its fiscal first quarter when it announced its previous results in August, as part of its outlook for the following period. Revenue above the target was accompanied by earnings per share that exceeded management's guidance, which had also included a target for adjusted gross margin. In its latest announcement, the company issued forecasts for the coming fiscal second quarter that exceeded analyst estimates for revenue and earnings per share, according to Investing.com.
The results follow a previous fiscal fourth quarter in which Western Digital recorded revenue of $3,747 million, according to its August statement. Revenue for that quarter rose 12% from the preceding quarter and 44% from the same period a year earlier. Fiscal fourth-quarter revenue thus increased on both a quarterly and annual basis before reaching the level reported in October. When issuing fiscal first-quarter guidance, the company said it was targeting an adjusted gross margin of 55.5%, alongside its revenue and earnings-per-share targets. Ahead of the latest results, an Investing.com report focused on the company's ability to maintain strong margins amid intensifying competition and rising component costs.
On customer relationships, Chief Executive Irving Tan said during the August earnings call that Western Digital was in talks about long-term agreements extending into later years. Tan identified calendar years 2029, 2030 and 2031 among the periods covered by discussions with customers, according to the call transcript published by Investing.com. He said: "We are already engaged in discussions with customers to enter into long-term agreements for calendar years 2029, 2030 and 2031 as well." Those talks were part of management's remarks accompanying the announcement of the previous fiscal fourth-quarter results, which showed quarterly and annual revenue growth. Tan described the agreements as being under discussion with customers with a view to signing them, as part of his remarks on the company's business during the call.
For the coming fiscal second quarter, Western Digital expects earnings per share of $5.60 to $6.00, according to Investing.com. That compares with the consensus analyst estimate of $4.82 per share for the same period, below the lower end of the company's forecast range. On sales, the company set a revenue target range of $5.00 billion to $5.20 billion for the fiscal second quarter. The analyst consensus for revenue is $4.57 billion, according to the website, also below the lower end of management's guidance. The company is therefore targeting revenue for the coming quarter above the level recorded in the reported quarter, with both its earnings-per-share and revenue forecast ranges exceeding analyst estimates for the coming period.