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Western Digital Financials

WDC
Source SEC Filings (10-K/10-Q) Updated Apr 3, 2026 Currency USD FYE June

This page shows Western Digital (WDC) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Rhea AI WDC FY2025

A margin-and-cost reset made FY2025's earnings recovery much larger than Western Digital's reduced revenue base suggests.

FY2025 produced $2.3B of operating income, nearly matching FY2022's $2.4B despite the company carrying a far smaller revenue base. It did so on revenue equal to only 50.7% of FY2022 because gross margin reached 38.8% and the cost base stayed much leaner, so the business now converts each sales dollar into profit far more efficiently than it did three years ago.

The turnaround converted into cash: operating cash flow was $1.7B against net income of $1.9B, which means the rebound was not just an accounting effect. With capex at $412M, free cash flow reached $1.3B, giving the company room to buy back stock and resume a small dividend.

The balance sheet is less debt-heavy, with long-term debt down to $2.5B from $7.1B in FY2022, so interest drag is smaller than it once was. But a current ratio of 1.1x also says the recovery is being run with a much thinner short-term liquidity cushion.

[ NOT FINANCIAL ADVICE ]

Financial Health Signals

Profitability Growth Leverage Liquidity Cash Flow Returns 41 / 100
Financial Profile 41/100

Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →

Health score ≠ stock price. This rates the quality of Western Digital's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Profitability
51

Western Digital has an operating margin of 24.5%, meaning the company retains $25 of operating profit per $100 of revenue. This results in a moderate score of 51/100, indicating healthy but not exceptional operating efficiency. This is up from -6.4% the prior year.

Growth
0

Western Digital's revenue surged 50.7% year-over-year to $9.5B, reflecting rapid business expansion. This strong growth earns a score of 0/100.

Leverage
92

Western Digital carries a low D/E ratio of 0.47, meaning only $0.47 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 92/100, indicating a strong balance sheet with room for future borrowing.

Liquidity
17

Western Digital's current ratio of 1.08 is below the typical benchmark, resulting in a score of 17/100. This tight liquidity could limit financial flexibility if cash inflows slow.

Cash Flow
35

Western Digital has a free cash flow margin of 13.4%, earning a moderate score of 35/100. The company generates positive cash flow after capital investments, but with room for improvement.

Returns
51

Western Digital's ROE of 35.6% shows moderate profitability relative to equity, earning a score of 51/100. This is up from -7.4% the prior year.

Altman Z-Score Safe
13.07

Western Digital scores 13.07, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($165.4B) relative to total liabilities ($8.5B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.

Piotroski F-Score Neutral
6/9

Western Digital passes 6 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, both operating efficiency signals pass.

Earnings Quality Mixed
0.90x

For every $1 of reported earnings, Western Digital generates $0.90 in operating cash flow ($1.7B OCF vs $1.9B net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.

Interest Coverage Safe
6.5x

Western Digital earns $6.5 in operating income for every $1 of interest expense ($2.3B vs $357.0M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.

Key Financial Metrics

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Earnings & Revenue

Revenue
$9.5B
YoY+50.7%
5Y CAGR-10.5%
10Y CAGR-4.7%

Western Digital generated $9.5B in revenue in fiscal year 2025. This represents an increase of 50.7% from the prior year.

EBITDA
$2.8B
YoY+1587.9%
5Y CAGR+8.0%
10Y CAGR+1.1%

Western Digital's EBITDA was $2.8B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 1587.9% from the prior year.

Net Income
$1.9B
YoY+336.7%
10Y CAGR+6.8%

Western Digital reported $1.9B in net income in fiscal year 2025. This represents an increase of 336.7% from the prior year.

EPS (Diluted)
$5.12
YoY+296.2%
10Y CAGR+2.6%

Western Digital earned $5.12 per diluted share (EPS) in fiscal year 2025. This represents an increase of 296.2% from the prior year.

Cash & Balance Sheet

Free Cash Flow
$1.3B
YoY+263.8%
5Y CAGR+13.8%
10Y CAGR-5.1%

Western Digital generated $1.3B in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 263.8% from the prior year.

Cash & Debt
$2.1B
YoY+36.3%
5Y CAGR-9.4%
10Y CAGR-6.9%

Western Digital held $2.1B in cash against $2.5B in long-term debt as of fiscal year 2025.

Dividends Per Share
$0.10
5Y CAGR-45.1%

Western Digital paid $0.10 per share in dividends in fiscal year 2025.

Shares Outstanding
347M
YoY+1.0%
5Y CAGR+3.2%
10Y CAGR+3.9%

Western Digital had 347M shares outstanding in fiscal year 2025. This represents an increase of 1.0% from the prior year.

Margins & Returns

Gross Margin
38.8%
YoY+10.7pp
5Y CAGR+16.1pp
10Y CAGR+10.4pp

Western Digital's gross margin was 38.8% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 10.7 percentage points from the prior year.

Operating Margin
24.5%
YoY+30.9pp
5Y CAGR+24.0pp
10Y CAGR+16.3pp

Western Digital's operating margin was 24.5% in fiscal year 2025, reflecting core business profitability. This is up 30.9 percentage points from the prior year.

Net Margin
19.8%
YoY+32.5pp
5Y CAGR+24.4pp
10Y CAGR+13.5pp

Western Digital's net profit margin was 19.8% in fiscal year 2025, showing the share of revenue converted to profit. This is up 32.5 percentage points from the prior year.

Return on Equity
35.6%
YoY+43.0pp
5Y CAGR+43.1pp
10Y CAGR+23.2pp

Western Digital's ROE was 35.6% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 43.0 percentage points from the prior year.

Capital Allocation

R&D Spending
$994.0M
YoY+4.6%
5Y CAGR-14.6%
10Y CAGR-4.5%

Western Digital invested $994.0M in research and development in fiscal year 2025. This represents an increase of 4.6% from the prior year.

Share Buybacks
$149.0M
5Y CAGR-23.3%
10Y CAGR-15.9%

Western Digital spent $149.0M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

Capital Expenditures
$412.0M
YoY-15.4%
5Y CAGR-14.0%
10Y CAGR-8.0%

Western Digital invested $412.0M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 15.4% from the prior year.

WDC Income Statement

Metric Q4'26 Q3'26 Q2'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24
Revenue $3.3B+10.6% $3.0B+7.1% $2.8B+8.2% $2.6B+13.6% $2.3B-4.8% $2.4B+8.9% $2.2B+10.4% $2.0B
Cost of Revenue $1.7B+1.5% $1.6B+2.9% $1.6B N/A $1.4B-8.0% $1.5B+6.8% $1.4B N/A
Gross Profit $1.7B+21.4% $1.4B+12.5% $1.2B+15.0% $1.1B+17.0% $912.0M+0.6% $907.0M+12.5% $806.0M+15.6% $697.0M
R&D Expenses $294.0M+1.7% $289.0M-1.7% $294.0M N/A $245.0M+8.9% $225.0M-14.1% $262.0M N/A
SG&A Expenses $147.0M+14.8% $128.0M-7.2% $138.0M N/A $108.0M-18.2% $132.0M-35.3% $204.0M N/A
Operating Income $1.2B+31.1% $908.0M+14.6% $792.0M N/A $760.0M+35.7% $560.0M+67.7% $334.0M N/A
Interest Expense $38.0M-29.6% $54.0M-8.5% $59.0M N/A $91.0M-2.2% $93.0M-6.1% $99.0M N/A
Income Tax $154.0M+28.3% $120.0M-22.6% $155.0M N/A -$698.0M $0-100.0% $90.0M N/A
Net Income $3.2B+74.0% $1.8B+55.8% $1.2B+319.1% $282.0M-45.8% $520.0M-12.5% $594.0M+20.5% $493.0M+1164.1% $39.0M
EPS (Diluted) $8.20+73.4% $4.73+54.1% $3.07+309.3% $0.75-47.2% $1.42-12.9% $1.63+20.7% $1.35+1587.5% $0.08

WDC Balance Sheet

Metric Q4'26 Q3'26 Q2'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24
Total Assets $15.0B-3.6% $15.6B+8.7% $14.4B+2.5% $14.0B-14.5% $16.4B-35.7% $25.5B+2.8% $24.8B+2.4% $24.2B
Current Assets $6.9B-8.2% $7.5B+20.0% $6.3B+7.2% $5.9B-27.6% $8.1B-13.7% $9.4B+4.8% $8.9B+10.9% $8.1B
Cash & Equivalents $2.0B+3.8% $2.0B-3.6% $2.0B-3.1% $2.1B-39.2% $3.5B+51.8% $2.3B+34.4% $1.7B+9.9% $1.6B
Inventory $1.4B+0.6% $1.3B-3.2% $1.4B+7.9% $1.3B-1.5% $1.3B-61.7% $3.4B+1.1% $3.4B+144.0% $1.4B
Accounts Receivable $1.9B+12.4% $1.7B+24.4% $1.4B-8.8% $1.5B+1.2% $1.5B-43.4% $2.6B+5.7% $2.5B+99.7% $1.2B
Goodwill $4.3B0.0% $4.3B0.0% $4.3B0.0% $4.3B0.0% $4.3B-55.6% $9.7B-0.8% $9.8B+127.2% $4.3B
Total Liabilities $5.4B-35.1% $8.3B+0.4% $8.2B-2.6% $8.5B-22.8% $11.0B-16.4% $13.1B+1.6% $12.9B-1.8% $13.1B
Current Liabilities $4.6B-10.4% $5.2B+0.1% $5.2B-4.5% $5.4B+4.6% $5.2B+10.1% $4.7B-22.7% $6.1B+0.1% $6.1B
Long-Term Debt $0-100.0% $2.4B-1.1% $2.5B-1.1% $2.5B-49.4% $4.9B-32.0% $7.2B+27.7% $5.7B-0.6% $5.7B
Total Equity $9.7B+36.1% $7.1B+20.8% $5.9B+10.9% $5.3B+2.6% $5.2B-57.3% $12.1B+4.1% $11.6B+7.6% $10.8B
Retained Earnings $6.9B+85.5% $3.7B+94.2% $1.9B+149.9% $762.0M+46.3% $521.0M-93.4% $7.9B+8.2% $7.3B+7.3% $6.8B

WDC Cash Flow Statement

Metric Q4'26 Q3'26 Q2'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24
Operating Cash Flow $1.1B+50.7% $745.0M+10.9% $672.0M-9.9% $746.0M+46.9% $508.0M+26.1% $403.0M+1085.3% $34.0M-90.7% $366.0M
Capital Expenditures $145.0M+57.6% $92.0M+26.0% $73.0M+2.8% $71.0M-45.0% $129.0M+11.2% $116.0M+20.8% $96.0M-17.2% $116.0M
Free Cash Flow $978.0M+49.8% $653.0M+9.0% $599.0M-11.3% $675.0M+78.1% $379.0M+32.1% $287.0M+562.9% -$62.0M-124.8% $250.0M
Investing Cash Flow -$145.0M-25.0% -$116.0M-103.5% -$57.0M+18.6% -$70.0M-149.3% $142.0M+15.4% $123.0M+373.3% -$45.0M+22.4% -$58.0M
Financing Cash Flow -$902.0M-28.3% -$703.0M-3.7% -$678.0M+66.8% -$2.0B-483.1% $533.0M+53400.0% -$1.0M+99.0% -$102.0M+68.0% -$319.0M
Dividends Paid $43.0M0.0% $43.0M+26.5% $34.0M-22.7% $44.0M $0 $0 $0 N/A
Share Buybacks $752.0M+22.3% $615.0M+11.2% $553.0M+271.1% $149.0M $0 $0 $0 N/A

WDC Financial Ratios

Metric Q4'26 Q3'26 Q2'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24
Gross Margin 50.2%+4.5pp 45.7%+2.2pp 43.5%+2.6pp 41.0%+1.2pp 39.8%+2.1pp 37.6%+1.2pp 36.4%+1.7pp 34.8%
Operating Margin 35.7%+5.6pp 30.1%+2.0pp 28.1% N/A 33.1%+9.9pp 23.3%+8.2pp 15.1% N/A
Net Margin 96.0%+35.0pp 61.1%+19.1pp 41.9%+31.1pp 10.8%-11.8pp 22.7%-2.0pp 24.7%+2.4pp 22.3%+20.3pp 1.9%
Return on Equity 33.1%+7.2pp 25.9%+5.8pp 20.1%+14.8pp 5.3%-4.7pp 10.0%+5.1pp 4.9%+0.7pp 4.2%+3.9pp 0.4%
Return on Assets 21.3%+9.5pp 11.8%+3.6pp 8.2%+6.2pp 2.0%-1.2pp 3.2%+0.9pp 2.3%+0.3pp 2.0%+1.8pp 0.2%
Current Ratio 1.49+0.0 1.46+0.2 1.21+0.1 1.08-0.5 1.56-0.4 1.99+0.5 1.47+0.1 1.32
Debt-to-Equity 0.00-0.3 0.34-0.1 0.42-0.1 0.47-0.5 0.95+0.4 0.60+0.1 0.49-0.0 0.53
FCF Margin 29.3%+7.7pp 21.6%+0.4pp 21.3%-4.6pp 25.9%+9.4pp 16.5%+4.6pp 11.9%+14.7pp -2.8%-15.3pp 12.5%

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Frequently Asked Questions

Western Digital (WDC) reported $9.5B in total revenue for fiscal year 2025. This represents a 50.7% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

Western Digital (WDC) revenue grew by 50.7% year-over-year, from $6.3B to $9.5B in fiscal year 2025.

Yes, Western Digital (WDC) reported a net income of $1.9B in fiscal year 2025, with a net profit margin of 19.8%.

Western Digital (WDC) reported diluted earnings per share of $5.12 for fiscal year 2025. This represents a 296.2% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Western Digital (WDC) had EBITDA of $2.8B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

As of fiscal year 2025, Western Digital (WDC) had $2.1B in cash and equivalents against $2.5B in long-term debt.

Western Digital (WDC) had a gross margin of 38.8% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

Western Digital (WDC) had an operating margin of 24.5% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

Western Digital (WDC) had a net profit margin of 19.8% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

Yes, Western Digital (WDC) paid $0.10 per share in dividends during fiscal year 2025.

Western Digital (WDC) has a return on equity of 35.6% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

Western Digital (WDC) generated $1.3B in free cash flow during fiscal year 2025. This represents a 263.8% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

Western Digital (WDC) generated $1.7B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

Western Digital (WDC) had $14.0B in total assets as of fiscal year 2025, including both current and long-term assets.

Western Digital (WDC) invested $412.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

Western Digital (WDC) invested $994.0M in research and development during fiscal year 2025.

Yes, Western Digital (WDC) spent $149.0M on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

Western Digital (WDC) had 347M shares outstanding as of fiscal year 2025.

Western Digital (WDC) had a current ratio of 1.08 as of fiscal year 2025, which is considered adequate.

Western Digital (WDC) had a debt-to-equity ratio of 0.47 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

Western Digital (WDC) had a return on assets of 13.5% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

Western Digital (WDC) has an Altman Z-Score of 13.07, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

Western Digital (WDC) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Western Digital (WDC) has an earnings quality ratio of 0.90x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Western Digital (WDC) has an interest coverage ratio of 6.5x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

Western Digital (WDC) scores 41 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.

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