Western Digital Q1 FY27: revenue up 55.5%, EPS $4.63, Cloud at 88.3%
Western Digital beat on both lines in FY2027 Q1 and guided the next quarter to $5.1 billion, about 69% above last year's base. The story is now narrow and simple: a $4.38 billion quarter that is 88.3% Cloud, a 57.8% gross margin, and $1.06 billion handed back to shareholders. Read the quarter for pricing power, then read the risks for customer concentration.
1 · Expected vs. Actual
Free preview belowGAAP EPS of $4.63 and non-GAAP EPS of $4.64 both cleared the $4.128 consensus by roughly 12.4%. The prior quarter's $8.21 GAAP figure was inflated by a gain on the retained Sandisk stake, so the 44% sequential drop in net income is accounting rather than deterioration, and operating income actually rose 30.9% to $2.05 billion. That is the cleaner read on the quarter.
Revenue was $4.38 billion, up 55.5% from $2.82 billion a year ago and 16.9% above the prior quarter's $3.75 billion. Cloud supplied $3.87 billion of that, or 88.3% of the total, so this is a hyperscaler story rather than a broad storage recovery. Client Devices at $320 million and Consumer at $193 million are now rounding errors.
Management guides Q2FY27 revenue to $5.1 billion plus or minus $100 million, which against last year's $3.02 billion base is the 66% to 72% growth cited in the release. Gross margin is guided to 60.0%-61.0% and non-GAAP EPS to $5.80 plus or minus $0.20, both above what the just-reported quarter delivered. Guidance has been beaten four times running.
Log in to read 35 analyses a week for free
Create a free account to read 35 full earnings analyses each week — all five steps: expected vs. actual, guidance tracker, money flow, balance sheet and risks. Members get unlimited access.
Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-10-23
Answers are based on the earnings release and the analysis above. Free accounts get 3 questions a week; members get 30 a day.