Western Digital Q1 2027 Net Income Increases 54% to $1.779 Billion

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Digital asset news highlights Western Digital’s Q1 2027 net income of $1.779 billion, up 54% year-over-year. Revenue reached $4.381 billion, rising 55% YoY and 17% QoQ. The increase reflects stronger demand for storage driven by the AI-powered data economy. Digital collectibles news also shows growing interest in data-driven markets.
CoinDesk reports:

IT Home, October 23: Western Digital today released its first fiscal quarter report for fiscal year 2027 (July 4, 2026, to October 2, 2026):

  • Total operating revenue: $4.381 billion (IT Home note: approximately RMB 29.306 billion at current exchange rates), up 55% year-over-year and 17% quarter-over-quarter.
  • Gross profit: $2.534 billion (approximately RMB 16.951 billion at current exchange rates), up 106.52% year-over-year and 24.95% quarter-over-quarter.
  • Gross profit margin: 57.8%, an increase of 14.3 percentage points year-over-year and 3.7 percentage points sequentially.
  • Net profit attributable to shareholders: $1.779 billion (approximately RMB 11.9 billion at current exchange rates), up 54% year-over-year but down 44% quarter-over-quarter.
  • Operating cash flow: $1.604 billion (approximately RMB 10.73 billion at current exchange rates)
  • Free cash flow: $1.377 billion (approximately RMB 9.211 billion at current exchange rates)
  • Basic earnings per share: $4.86 (approximately RMB 32.51 at the current exchange rate)
  • Diluted earnings per share: $4.63 (approximately RMB 30.97 at the current exchange rate)

The company stated that its earnings performance exceeded market expectations, driven by strong demand for storage fueled by the AI-powered data economy, resulting in a robust start to the fiscal period. Western Digital is a global leader in storage infrastructure, providing storage solutions for the AI-driven data economy to hyperscale enterprises, cloud service providers, and enterprise customers worldwide, with a focus on hard disk drive (HDD) business and innovation in high-capacity storage products.

Highlights from the First Quarter of Fiscal Year 2027:

  • Revenue reached $4.381 billion (approximately RMB 29.306 billion at current exchange rates), representing a 55% year-over-year increase and a 17% sequential increase.
  • The GAAP gross profit margin was 57.8%, while the Non-GAAP gross profit margin reached 58.1%, showing significant year-over-year and quarter-over-quarter improvement.
  • GAAP diluted net income attributable to common shareholders was $1.779 billion (approximately RMB 11.9 billion at current exchange rates), representing a 54% year-over-year increase and a 44% sequential decrease.
  • GAAP diluted earnings per share amounted to $4.63 (approximately RMB 30.97 at current exchange rates).
  • Net cash flow from operating activities was $1.604 billion (approximately RMB 10.73 billion at current exchange rates), and free cash flow was $1.377 billion (approximately RMB 9.211 billion at current exchange rates).
  • The company's board of directors announced an increase of 17% in the quarterly cash dividend to $0.18 per share (approximately RMB 1.17 at the current exchange rate).

Future Performance Outlook:

  • Revenue for the second quarter of fiscal year 2027 is expected to grow 66% to 72% year-over-year, with a revenue range of $5 billion (approximately RMB 33.447 billion at current exchange rates) to $5.2 billion (approximately RMB 34.785 billion at current exchange rates).
  • The expected non-GAAP gross margin is in the range of 60% to 61%.
  • Non-GAAP diluted earnings per share are expected to range from $5.60 (approximately RMB 37.46 at current exchange rates) to $6.00 (approximately RMB 40.14 at current exchange rates).

Related reading:

  • Applied Materials' net profit attributable to shareholders for Q1 FY2027 increased by 75.51% year-over-year, slightly exceeding market expectations.
  • Texas Instruments' net profit attributable to shareholders for the third quarter of fiscal year 2026 was $2.425 billion, a 78% year-over-year increase.
  • Changchuan Technology expects its net profit attributable to shareholders for the first three quarters of 2026 to be between RMB 1.715 billion and RMB 1.815 billion, representing a year-over-year increase of 98.17% to 109.73%.
  • Western Digital's fiscal year 2026 annual report shows a net profit attributable to parent company shareholders of $9.298 billion, a 481% year-over-year increase.
  • Western Digital reports net profit of $3.172 billion for the third quarter of fiscal year 2026, a 320% year-over-year increase.
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