WESTERN DIGITAL CORPWDC
WESTERN DIGITAL CORP Financial Overview 2021–2025
Western Digital's decision to spin off its Flash business triggered a dramatic financial reset, highlighted by a 51% revenue surge in FY2025. By shedding the volatile memory market to focus exclusively on hard disk drives, the company has transformed into a specialized storage supplier positioned to capture rising data center demand.
The company's structural overhaul is clear when tracking its historical footprint. Total performance evolved from $16.9 billion in net revenue in FY2021 as a blended storage provider to a sharply focused $9.52 billion in net revenue in FY2025 following the corporate separation. This smaller footprint is heavily driven by enterprise demand, with Cloud segment revenue jumping 65% in FY2025 on the back of higher unit shipments and elevated average selling prices for high-capacity drives. The resulting cash generation allowed management to rapidly repair the balance sheet, paying down $2.78 billion in debt over the fiscal year.
With operations stabilized, Western Digital authorized a $2.0 billion share repurchase program and initiated a new quarterly cash dividend. At the close of FY2025, the market valued this streamlined operation at $63.29 per share, trading at 12.4x earnings.
Recent Developments (Q1 and Q2 2026)
Western Digital's operational momentum accelerated through Q2 2026, highlighted by revenue jumping 25% year-over-year to $3.017 billion. Top-line growth was fueled by a 22% increase in exabytes sold, which helped expand gross margins by 8 percentage points to 45.7%. Capital structure adjustments defined recent months, including the full redemption of 4.750% Senior Notes due 2026 and the mandatory conversion of Series A Preferred Stock. Additionally, leadership shifted with Brad Feller taking over as Chief Accounting Officer in November 2025.
Bulls point to the massive profitability windfall, with net income hitting $1.842 billion in Q2 2026 following a $1.103 billion mark-to-market gain from retained SanDisk equity. Conversely, bears argue that backing out this non-operating gain leaves a core business trading at a steep premium, valued at 48.9x earnings as of the January 29, 2026 reporting date.
What to watch: common stock dilution following the preferred shares conversion; gross margin stability if high-capacity drive pricing normalizes.
Rev
$9.52B
FY2025
NI
$1.89B
FY2025
EPS
$5.31
FY2025
OCF
$1.69B
FY2025
Year-over-year comparison from 10-K annual reports
Data from SEC Company Facts
Recent SEC Filings
WESTERN DIGITAL CORP 8-K Report, Rights Modification (Feb 18, 2026)
Western Digital Corporation (WDC) has announced the mandatory conversion of all outstanding shares of its Series A Convertible Perpetual Preferred Stock into shares of its Common Stock. This conversion was triggered on February 17, 2026, as per the terms outlined in the Certificate of Designations for the Preferred Stock, following the satisfaction of specific trading price conditions for the Common Stock. This event marks a significant shift in the Company's capital structure, effectively eliminating the preferred stock class and increasing the number of outstanding common shares. Investors should note that this conversion was pre-determined by the terms agreed upon at the time the preferred stock was issued in January 2023. The conditions for this mandatory conversion, specifically that the Common Stock's closing price exceeded 150% of the conversion price for at least 20 trading days within a 30-day period, have now been met.
WESTERN DIGITAL CORP 8-K Report, Corporate Update (Feb 9, 2026)
Western Digital Corporation (WDC) has announced the full redemption of its 4.750% Senior Notes due 2026. The company issued a conditional notice of redemption on January 5, 2026, followed by a formal notice from the Trustee on January 6, 2026. Importantly, WDC deposited the necessary funds to cover the principal and accrued interest on February 5, 2026, which has now satisfied and discharged its obligations under the associated indenture. This action effectively releases WDC and its guarantors from all liabilities related to these specific senior notes. Investors holding these Notes should have received or will receive their principal repayment along with any accrued interest up to the redemption date. The successful redemption and discharge indicate WDC's ability to manage its debt obligations and improve its capital structure by retiring an upcoming debt maturity.
WESTERN DIGITAL CORP 8-K Report, Financial Results (Jan 29, 2026)
Western Digital Corporation (WDC) filed an 8-K on January 29, 2026, to announce its financial results for the fiscal second quarter ended January 2, 2026. The press release containing these results, attached as Exhibit 99.1, provides investors with the company's performance data for the period. While the 8-K itself is a procedural filing, the attached press release is the critical document for understanding WDC's operational and financial standing during the quarter. Investors should carefully review the press release for details on revenue, profitability, segment performance (HDD and Flash), and any forward-looking guidance. This information will be crucial for assessing the company's current business trends, competitive position, and future prospects within the data storage market.
WESTERN DIGITAL CORP 8-K Report, Executive Changes (Nov 24, 2025)
Western Digital Corporation (WDC) filed an 8-K report detailing the outcomes of its Annual Meeting of Stockholders held on November 20, 2025. The most significant event for investors was the approval of the Amended and Restated 2005 Employee Stock Purchase Plan (ESPP), which increases the shares available for issuance by 8 million. This action indicates the company's continued commitment to equity-based compensation and employee ownership. Additionally, the filing confirms the election of eight directors to serve until the next annual meeting and the ratification of KPMG LLP as the independent registered public accounting firm for fiscal year 2026. The company also received advisory approval for named executive officer compensation. These votes reflect broad stockholder support for the company's governance and operational direction.
WESTERN DIGITAL CORP 8-K Report, Executive Changes (Nov 3, 2025)
Western Digital Corporation (WDC) announced a significant leadership change within its finance department through an 8-K filing. Effective November 14, 2025, Brad Feller has been appointed as the new Senior Vice President and Chief Accounting Officer, succeeding Gene M. Zamiska. Mr. Feller brings a diverse background in finance leadership roles across various technology companies, including previous experience at Marvell Semiconductor and Infinera. This appointment is accompanied by a comprehensive compensation package designed to attract and retain Mr. Feller. This includes a base salary of $425,000, a 75% target bonus opportunity, a $300,000 signing bonus with a clawback provision, and a substantial initial restricted stock unit (RSU) award valued at $1.5 million, vesting over time. He will also be eligible for future equity awards and participate in standard executive severance plans. Investors should note this transition as a key management update impacting the company's accounting oversight.
View all 8-K filings →