Western Digital Corp
XMUN:WDC
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
W
|
Western Digital Corp
XMUN:WDC
|
US |
Western Digital Corp
Western Digital makes data storage products that hold and move digital files. Its main products are hard disk drives, solid-state drives, and flash memory products sold under brands such as Western Digital and SanDisk. These products are used in computers, game consoles, external drives, data centers, and other devices that need reliable storage. The company sells to a mix of customers: cloud and enterprise data centers, computer and device makers, retailers, and consumers. It makes money by selling storage hardware and related components through original equipment manufacturers, distributors, and retail channels. In plain terms, Western Digital earns revenue every time a customer buys the drives or memory inside a system, or a finished storage product off the shelf. What makes Western Digital different is its role in the storage layer of the tech stack. It sits between chip makers and end users, turning memory and drive technology into products that store huge amounts of data at low cost or with fast access speeds. That makes it a key supplier for both large-scale data infrastructure and everyday consumer storage.
Western Digital makes data storage products that hold and move digital files. Its main products are hard disk drives, solid-state drives, and flash memory products sold under brands such as Western Digital and SanDisk. These products are used in computers, game consoles, external drives, data centers, and other devices that need reliable storage.
The company sells to a mix of customers: cloud and enterprise data centers, computer and device makers, retailers, and consumers. It makes money by selling storage hardware and related components through original equipment manufacturers, distributors, and retail channels. In plain terms, Western Digital earns revenue every time a customer buys the drives or memory inside a system, or a finished storage product off the shelf.
What makes Western Digital different is its role in the storage layer of the tech stack. It sits between chip makers and end users, turning memory and drive technology into products that store huge amounts of data at low cost or with fast access speeds. That makes it a key supplier for both large-scale data infrastructure and everyday consumer storage.
Strong quarter: Western Digital reported revenue of $3.3 billion, up 45% year over year, and EPS of $2.72, nearly double last year, with both above the high end of guidance.
Margins expanded: Gross margin reached 50.5%, helped by better mix, stronger pricing and tight cost control, while operating margin rose to 38.6%.
AI demand thesis: Management said training, inferencing, agentic AI and physical AI are all increasing persistent data storage needs, supporting its view that long-term exabyte growth can exceed 25% CAGR.
Outlook improved: Q4 revenue is guided to $3.65 billion plus/minus $100 million, with gross margin of 51% to 52% and EPS of $3.25 plus/minus $0.15.
Capital return: The board approved a 20% dividend increase to $0.15 per share, and the company said it will keep returning excess free cash flow through dividends and buybacks.
