WESTERN DIGITAL CORPWDC
WESTERN DIGITAL CORP Financial Overview 2021–2025
Updated Jul 10, 2026Western Digital’s 65% surge in Cloud segment revenue during FY2025 proves that shedding its legacy Flash memory unit was a highly lucrative pivot. By spinning off Sandisk and operating as a pure-play hard disk drive (HDD) manufacturer, the company has successfully transformed from a cyclical hardware conglomerate into a focused infrastructure engine directly levered to data center expansions.
The corporate separation completely reshaped the company's financial profile, with overall net revenue shifting from a combined $16.9 billion in FY2021 to $9.52 billion in FY2025 as a standalone HDD operation. This leaner footprint allowed Western Digital to capture significant pricing power from higher-capacity drives, driving total FY2025 revenue up 51% year-over-year. Management aggressively repaired the balance sheet alongside this operational recovery, eliminating $2.78 billion in debt throughout FY2025 while initiating a new quarterly cash dividend and authorizing a $2.0 billion share repurchase program.
Despite the fundamental turnaround and sudden influx of capital returns, the market assigned a relatively conservative premium to the restructured business. At the close of FY2025, the newly streamlined stock traded at $63.29, reflecting a 12.4x price-to-earnings multiple on $5.12 in per-share earnings.
Recent Developments (Q2 and Q3 2026)
Western Digital accelerated its growth through Q3 2026, overhauling its capital structure and liquidating its retained Sandisk interest. Revenue jumped 45% year-over-year in Q3 2026, building on a 25% expansion to $3.017 billion in Q2 2026. Gross margins expanded by 10 percentage points year-over-year in the third quarter, driven by cloud demand that now constitutes 89% of sales.
Management utilized a $2.73 billion gain on Sandisk holdings in Q3 2026 to retire senior notes due in 2026, 2029, and 2032. The company also converted all Series A preferred stock, exchanged $858.4 million in convertible notes for equity, and added Manuvir Das to the Board in May 2026. Bulls see this margin expansion and debt retirement cementing a highly profitable pure-play infrastructure business. Conversely, the stock appears richly valued at 84.3x earnings as of the Q3 2026 report, leaving little room for error.
What to watch: the impact of recent equity exchanges on share dilution; sustainability of cloud demand for high-capacity enterprise drives.
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
All WDC Financial Metrics(60)
Income Statement
Balance Sheet
- Cash & ST Investments
- Total Assets
- Current Assets
- Cash
- Short-Term Investments
- Receivables
- Inventory
- Prepaid & Other
- PP&E
- Goodwill
- Intangibles
- Other Non-current
- Total Liabilities
- Current Liabilities
- Accounts Payable
- Accrued Liabilities
- Short-Term Debt
- Long-Term Debt
- Other Non-current Liab.
- Equity
- Retained Earnings
- Accumulated OCI
- APIC
- Treasury Stock
- Total L&E
- Shares Outstanding
Cash Flow
Recent SEC Filings
WESTERN DIGITAL CORP 8-K/A Report, Unregistered Securities Sale (Aug 27, 2026)
Western Digital Corporation (WDC) has filed an amendment to its prior 8-K, providing an update on the previously announced exchange transactions involving its 3.00% Convertible Senior Notes due 2028. The company has confirmed that approximately $191.0 million aggregate principal amount of these notes will be exchanged for a combination of cash and shares of WDC common stock. This filing specifically discloses the exact number of common shares to be issued, which was not finalized at the time of the initial report.
WESTERN DIGITAL CORP 8-K Report, Unregistered Securities Sale (Aug 26, 2026)
Western Digital Corporation (WDC) announced on August 26, 2026, that it has entered into private exchange agreements with certain holders of its 3.00% Convertible Senior Notes due 2028. These agreements involve the exchange of approximately $191.0 million in aggregate principal amount of these notes for a combination of cash and WDC common stock. This move is designed to reduce the company's outstanding convertible debt. The exchange will involve approximately $192.7 million in cash, covering the principal and accrued interest on the exchanged notes. Additionally, a certain number of WDC common stock shares, referred to as "Exchange Shares," will be issued. The number of these shares will be determined based on the remaining conversion value of the notes, calculated using the volume-weighted average price of WDC's stock on the transaction date. The transactions are expected to conclude on or after September 2, 2026, pending the fulfillment of standard closing conditions.
WESTERN DIGITAL CORP 8-K Report, Financial Results (Aug 5, 2026)
Western Digital Corporation (WDC) announced its financial results for the fiscal fourth quarter and full year ended July 3, 2026, via an 8-K filing on August 5, 2026. The filing primarily serves to attach the press release detailing these results, which is incorporated by reference. Investors should refer to the attached press release (Exhibit 99.1) for specific financial performance metrics, including revenue, profitability, and any forward-looking guidance. While the 8-K itself does not contain the detailed financial figures, its purpose is to officially disclose the company's performance for the reporting period. The information contained within the press release is crucial for understanding WDC's current financial health, operational achievements, and strategic direction as it concludes its fiscal year. Investors are advised to review the press release thoroughly for a comprehensive understanding of the company's performance and outlook.
WESTERN DIGITAL CORP 8-K Report, Corporate Update (Jun 11, 2026)
Western Digital Corporation (WDC) announced on June 11, 2026, that it has entered into private exchange agreements with institutional investors to divest a significant portion of its Sandisk Corporation (Sandisk Stock) holdings. The company plans to exchange approximately 1,038,681 shares of Sandisk Stock for shares of its own common stock. This strategic move suggests a potential shift in Western Digital's focus, possibly towards simplifying its capital structure or divesting non-core assets. Investors should monitor the final exchange ratio, which will be determined by the volume-weighted average prices of both Sandisk Stock and WDC common stock over a three-day period ending June 18, 2026, as this will impact the dilution to existing WDC shareholders.
WESTERN DIGITAL CORP 8-K/A Report, Unregistered Securities Sale (Jun 8, 2026)
Western Digital Corporation (WDC) has filed an amendment to its previous 8-K filing to disclose the exact number of shares of common stock to be issued in private exchange transactions for its 3.00% Convertible Senior Notes due 2028. These transactions, previously announced on June 3, 2026, involve the exchange of approximately $858.4 million aggregate principal amount of these Notes for a combination of cash and WDC's common stock. This amendment clarifies the equity component of the deal, which was previously undisclosed due to a stock price measurement period.
View all 8-K filings →