A Business at a Glance
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WESTERN DIGITAL CORP
WDC
$186.8B
Mkt Cap
$519.80
-6.90%
WESTERN DIGITAL CORP (WDC) has a current P/E ratio of 48.6, compared to its historical median P/E of 26.8. The stock is currently considered Expensive based on its historical valuation range.
WESTERN DIGITAL CORP (WDC) has a 5-year average return on invested capital (ROIC) of 5.8%. This is below average and may indicate limited pricing power.
WESTERN DIGITAL CORP (WDC) has a market capitalization of $179.2B. It is classified as a large-cap stock.
Yes, WESTERN DIGITAL CORP (WDC) pays a dividend with a trailing twelve-month yield of 0.02%. The company also returns capital through share buybacks, with a buyback yield of 0.08%.
Based on historical P/E analysis, WESTERN DIGITAL CORP (WDC) appears expensive. The current P/E of 48.6 is 81% above its historical median of 26.8. The estimated fair value CAGR (P/E method) is 41.0%.
WESTERN DIGITAL CORP (WDC) operates in the Computer Storage Devices industry, within the Technology sector.
WESTERN DIGITAL CORP (WDC) reported annual revenue of $9.5 billion in its most recent fiscal year, based on SEC EDGAR filings.
Western Digital is a leading developer, manufacturer, and provider of hard disk drive (HDD) storage devices and solutions, serving cloud data centers, enterprise systems, edge computing, video surveillance, and consumer devices with reliable, cost-effective, high-capacity storage. The company operates across three primary end markets—Cloud (enterprise HDDs for data centers and tiered storage), Client (OEM and channel desktop/notebook solutions), and Consumer (external storage products sold through retail and channel routes)—leveraging a vertically integrated manufacturing model where it designs and produces substantially all recording heads and magnetic media in-house, with assembly and testing concentrated in Thailand, Malaysia, Philippines, China, and the United States. Western Digital's competitive positioning rests on its extensive intellectual property portfolio of approximately 4,500 active patents, innovation in areal density and magnetic recording technologies, global manufacturing footprint, and platform-based product architecture that enables cost efficiency and customer qualification leverage. The company's business model is characterized by high-volume, capital-intensive manufacturing with a focus on cost leadership and total cost of ownership advantages, particularly as HDDs remain the economical solution for mass storage in cloud environments despite competition from NAND flash and other storage technologies. International sales represent approximately 55% of revenue, with the company maintaining deep relationships with cloud service providers, computer manufacturers, OEMs, resellers, distributors, and retailers worldwide.
【AI-driven capacity demand surge】 Management expects agentic AI to drive a step-function increase in capacity-oriented storage demand, particularly in cloud and enterprise environments, as inference workloads account for roughly two-thirds of AI compute and generate substantial data requiring storage. The company anticipates strong demand and pricing environment visibility across cloud, consumer, and client businesses, with plans to have all major customers qualified on UltraSMR by the end of calendar 2027, positioning close to 60% of exabyte shipments on that technology by fiscal 2027 end. Western Digital is advancing next-generation ePMR and HAMR drives to deliver cutting-edge areal density improvements and performance innovation, with HAMR ramp anticipated in the first half of calendar 2027 following accelerated qualification timelines. The company expects to maintain capital expenditure as a percentage of revenue within the 4%-6% range on a run-rate basis even with HAMR ramp, while continuing disciplined free cash flow generation and capital returns to shareholders through share repurchases and dividend increases.
| Metric | Target | Period |
|---|---|---|
| Gross margin | 51%-52% | Q4 FY2026 |
| Operating expenses | $385 million-$395 million | Q4 FY2026 |
Gross margin (Q4 FY2026): “Gross margin is expected to be in the range of 51%-52%”
Operating expenses (Q4 FY2026): “We expect operating expenses in the range of $385 million-$395 million”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2026 Earnings Call, Q3 FY2026 Earnings Call, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 0 | 9.5B | 6.3B | 6.3B | 18.8B | 16.9B |
| Net Income | 0 | 1.8B | -852M | -1.7B | 1.5B | 821M |
| EPS | $0.00 | $5.12 | $-2.61 | $-5.37 | $4.89 | $2.66 |
| Free Cash Flow | 0 | 1.3B | -781M | -1.2B | 758M | 752M |
| ROIC | - | 20.4% | -5.1% | -3.3% | 10.3% | 6.8% |
| Gross Margin | - | 38.8% | 28.1% | 22.2% | 31.3% | 26.7% |
| Debt/Equity | 0.00 | 0.89 | 0.69 | 0.64 | 0.57 | 0.81 |
| Dividends/Share | $0.00 | $0.10 | $0.00 | $0.00 | $0.00 | $0.00 |
| Operating Income | 0 | 2.3B | -403M | -548M | 2.4B | 1.2B |
| Operating Margin | 0.0% | 24.5% | -6.4% | -8.8% | 12.7% | 7.2% |
| ROE | 0.0% | 22.8% | -7.8% | -14.7% | 13.4% | 8.1% |
| Shares Outstanding | 345M | 359M | 326M | 318M | 316M | 309M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 15.1B | 14.6B | 13.0B | 19.1B | 20.6B | 16.6B | 16.7B | 16.9B | 18.8B | 6.3B | 6.3B | 9.5B | 0 |
| Gross Margin | 28.8% | 29.0% | 26.4% | 31.8% | 37.3% | 22.6% | 22.6% | 26.7% | 31.3% | 22.2% | 28.1% | 38.8% | N/A |
| R&D | 1.7B | 1.6B | 1.6B | 2.4B | 2.4B | 2.2B | 2.3B | 2.2B | 2.3B | 986M | 950M | 994M | 994M |
| SG&A | 761M | 788M | 997M | 1.4B | 1.5B | 1.3B | 1.2B | 1.1B | 1.1B | 807M | 726M | 568M | 568M |
| EBIT | 1.8B | 1.6B | 466M | 2.0B | 3.6B | 87M | 335M | 1.2B | 2.4B | -548M | -403M | 2.3B | 0 |
| Op. Margin | 11.8% | 11.1% | 3.6% | 10.2% | 17.5% | 0.5% | 2.0% | 7.2% | 12.7% | -8.8% | -6.4% | 24.5% | 0.0% |
| Net Income | 1.6B | 1.5B | 242M | 397M | 675M | -754M | -250M | 821M | 1.5B | -1.7B | -852M | 1.8B | 0 |
| Net Margin | 10.7% | 10.1% | 1.9% | 2.1% | 3.3% | -4.6% | -1.5% | 4.9% | 8.2% | -27.3% | -13.5% | 19.3% | 0.0% |
| Non-Recurring | 0 | 82M | 345M | 192M | 198M | 166M | 66M | 103M | 59M | 0 | 0 | 113M | 113M |
| Returns on Capital | |||||||||||||
| ROIC | 24.7% | 23.1% | 2.4% | 6.7% | 12.2% | 0.3% | 2.0% | 6.8% | 10.3% | -3.3% | -5.1% | 20.4% | N/A |
| ROE | 18.3% | 15.9% | 2.2% | 3.5% | 5.9% | -7.0% | -2.6% | 8.1% | 13.4% | -14.7% | -7.8% | 22.8% | 0.0% |
| ROA | 10.4% | 9.7% | 0.7% | 1.3% | 2.3% | -2.7% | -1.0% | 3.2% | 5.9% | -6.7% | -3.5% | 9.6% | 0.0% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 2.8B | 2.2B | 2.0B | 3.4B | 4.2B | 1.5B | 824M | 1.9B | 1.9B | -408M | -294M | 1.7B | 0 |
| Free Cash Flow | 2.2B | 1.6B | 1.4B | 2.9B | 3.4B | 671M | 177M | 752M | 758M | -1.2B | -781M | 1.3B | 0 |
| Owner Earnings | 1.4B | 966M | 638M | 915M | 1.8B | -571M | -1.1B | 368M | 625M | -1.6B | -1.2B | 975M | -716M |
| CapEx | 628M | 612M | 584M | 578M | 835M | 876M | 647M | 1.1B | 1.1B | 821M | 487M | 412M | 0 |
| Maint. CapEx | 1.2B | 1.1B | 1.2B | 2.1B | 2.1B | 1.8B | 1.6B | 1.2B | 929M | 828M | 568M | 451M | 451M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 193M | 0 | 0 | 0 | 0 |
| D&A | 1.2B | 1.1B | 1.2B | 2.1B | 2.1B | 1.8B | 1.6B | 1.2B | 929M | 828M | 568M | 451M | 451M |
| CapEx/OCF | 22.3% | 27.3% | 29.5% | 16.8% | 19.9% | 56.6% | 78.5% | 60.4% | 59.7% | N/A | N/A | 24.4% | 0.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 259M | 396M | 464M | 574M | 593M | 147M | 595M | 0 | 0 | 0 | 0 | 44M | 0 |
| Dividend Yield | 1.6% | 2.0% | 3.9% | 4.0% | 3.3% | 1.4% | 5.1% | N/A | N/A | N/A | N/A | 0.2% | N/A |
| Share Buybacks | 816M | 970M | 60M | 0 | 591M | 563M | 0 | 0 | 0 | 0 | 0 | 149M | 149M |
| Buyback Yield | 4.0% | 6.2% | 0.5% | N/A | 2.9% | 3.5% | N/A | N/A | N/A | N/A | N/A | 0.6% | 0.1% |
| Stock-Based Comp | 156M | 162M | 191M | 394M | 377M | 306M | 308M | 318M | 326M | 318M | 295M | 265M | 265M |
| Debt Repayment | 2.5B | 125M | 2.3B | 11.7B | 17.1B | 181M | 982M | 886M | 3.6B | 1.2B | 2.1B | 2.1B | 2.1B |
| Balance Sheet | |||||||||||||
| Net Debt | -2.1B | -2.7B | 8.6B | 6.8B | 6.1B | 7.1B | 6.5B | 5.4B | 4.7B | 5.0B | 5.9B | 2.6B | 0 |
| Cash & Equiv. | 4.8B | 5.0B | 8.2B | 6.4B | 5.0B | 3.5B | 3.0B | 3.4B | 2.3B | 2.0B | 1.6B | 2.1B | N/A |
| Long-Term Debt | 2.3B | 2.1B | 13.7B | 12.9B | 11.0B | 10.2B | 9.3B | 8.5B | 7.0B | 5.9B | 5.7B | 2.5B | 2.5B |
| Debt/Equity | 0.33 | 0.28 | 1.52 | 1.15 | 0.97 | 1.06 | 1.00 | 0.81 | 0.57 | 0.64 | 0.69 | 0.89 | 0.00 |
| Interest Coverage | 38.9 | 32.9 | 1.8 | 2.3 | 5.4 | 0.2 | 0.8 | 3.7 | 7.9 | -1.8 | -1.0 | 6.5 | 6.5 |
| Equity | 8.8B | 9.2B | 11.1B | 11.4B | 11.5B | 10.0B | 9.6B | 10.8B | 12.3B | 11.0B | 10.8B | 5.3B | 0 |
| Total Assets | 15.5B | 15.2B | 32.9B | 29.9B | 29.2B | 26.4B | 25.7B | 26.1B | 26.3B | 24.5B | 24.2B | 14.0B | 0 |
| Total Liabilities | 6.7B | 6.0B | 21.7B | 18.4B | 17.7B | 16.4B | 16.1B | 15.4B | 14.0B | 12.7B | 13.1B | 8.5B | 8.5B |
| Intangibles | 454M | 332M | 5.0B | 3.8B | 2.7B | 8.0M | 941M | 442M | 213M | 80M | 78M | N/A | N/A |
| Retained Earnings | 8.1B | 9.1B | 8.8B | 8.6B | 8.8B | 7.4B | 6.7B | 7.5B | 9.0B | 7.6B | 6.8B | 762M | 762M |
| Working Capital | 4.9B | 5.3B | 5.6B | 6.7B | 6.2B | 4.7B | 4.6B | 4.9B | 4.2B | 2.5B | 2.0B | 438M | 438M |
| Current Assets | 8.7B | 8.5B | 12.6B | 11.1B | 10.6B | 8.5B | 9.0B | 9.8B | 9.5B | 7.9B | 8.1B | 5.9B | 5.9B |
| Current Liabilities | 3.8B | 3.2B | 6.9B | 4.3B | 4.5B | 3.8B | 4.4B | 4.9B | 5.2B | 5.4B | 6.1B | 5.4B | 5.4B |
| Per Share Data | |||||||||||||
| EPS | 5.05 | 4.67 | 0.76 | 1.34 | 2.20 | -2.58 | -0.84 | 2.66 | 4.89 | -5.37 | -2.61 | 5.12 | 0.00 |
| Owner EPS | 4.42 | 3.08 | 1.99 | 3.09 | 5.78 | -1.95 | -3.53 | 1.19 | 1.98 | -4.89 | -3.54 | 2.71 | -2.08 |
| Book Value | 27.61 | 29.40 | 34.81 | 38.54 | 37.58 | 34.10 | 32.09 | 34.99 | 38.98 | 34.47 | 33.14 | 14.78 | 0.00 |
| Cash Flow/Share | 8.79 | 7.15 | 6.19 | 11.60 | 13.71 | 5.29 | 2.77 | 6.15 | 5.95 | -1.28 | -0.90 | 4.71 | 1.31 |
| Dividends/Share | 0.81 | 1.36 | 1.51 | 2.00 | 2.00 | 0.50 | 1.50 | 0.00 | 0.00 | 0.00 | 0.00 | 0.10 | 0.00 |
| Shares Out. | 320.3M | 313.6M | 320.2M | 296.3M | 306.8M | 292.2M | 297.6M | 308.6M | 316.2M | 318.1M | 326.4M | 359.4M | 344.7M |
| Valuation | |||||||||||||
| P/E Ratio | 12.5 | 10.6 | 47.2 | 57.3 | 29.9 | N/A | N/A | 23.8 | 10.2 | N/A | N/A | 13.4 | N/A |
| P/FCF | 9.3 | 9.6 | 8.2 | 6.0 | 4.5 | 18.0 | 54.3 | 19.6 | 15.3 | N/A | N/A | 19.3 | N/A |
| EV/EBIT | 9.8 | 8.0 | 43.0 | 12.0 | 6.0 | 228.2 | 49.2 | 17.8 | 7.4 | N/A | N/A | 12.0 | N/A |
| Price/Book | 2.3 | 1.7 | 1.0 | 2.0 | 1.8 | 1.6 | 1.3 | 1.8 | 1.3 | 1.2 | 1.5 | 4.8 | N/A |
| Price/Sales | 1.1 | 1.3 | 0.9 | 1.0 | 1.2 | 0.8 | 0.9 | 1.0 | 0.9 | 1.0 | 2.1 | 1.9 | N/A |
| FCF Yield | 10.8% | 10.4% | 12.3% | 12.6% | 16.7% | 4.2% | 1.4% | 3.9% | 4.9% | -9.2% | -5.0% | 5.0% | N/A |
| Market Cap | 20.3B | 15.6B | 11.4B | 22.7B | 20.2B | 16.0B | 12.7B | 19.5B | 15.3B | 13.3B | 15.7B | 25.4B | 179.2B |
| Avg. Price | 50.32 | 61.91 | 37.31 | 48.29 | 58.95 | 35.12 | 38.98 | 41.97 | 41.80 | 28.68 | 43.34 | 49.59 | 519.80 |
| Year-End Price | 63.27 | 49.74 | 35.66 | 58.00 | 49.72 | 41.30 | 32.26 | 47.83 | 36.68 | 31.65 | 51.40 | 68.85 | 519.80 |
WESTERN DIGITAL CORP passes 4 of 9 quality checks, suggesting mixed fundamentals.
WESTERN DIGITAL CORP trades at 48.6x trailing earnings, compared to its 15-year median P/E of 26.8x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 76.4x vs a median of 16.6x. The company's 5-year average ROIC is 5.8% with a gross margin of 29.4%. Total shareholder yield () is 0.1%. At current prices, the estimated annualized return to fair value is +9.4%.
WESTERN DIGITAL CORP (WDC) has a net profit margin of 19.3%. This is a healthy margin.
WESTERN DIGITAL CORP (WDC) generated $1.3 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
WESTERN DIGITAL CORP (WDC) has a debt-to-equity ratio of 0.89. This indicates moderate leverage.
WESTERN DIGITAL CORP (WDC) reported earnings per share (EPS) of $5.12 in its most recent fiscal year.
WESTERN DIGITAL CORP (WDC) has a return on equity (ROE) of 22.8%. This indicates the company generates strong returns for shareholders.
WESTERN DIGITAL CORP (WDC) has a 5-year average gross margin of 29.4%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 18 years of financial data for WESTERN DIGITAL CORP (WDC), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
WESTERN DIGITAL CORP (WDC) has a book value per share of $14.78, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects agentic AI to drive a step-function increase in capacity-oriented storage demand, particularly in cloud and enterprise environments, as inference workloads account for roughly two-thirds of AI compute and generate substantial data requiring storage. The company anticipates strong demand and pricing environment visibility across cloud, consumer, and client businesses, with plans to have all major customers qualified on UltraSMR by the end of calendar 2027, positioning close to 60% of exabyte shipments on that technology by fiscal 2027 end. Western Digital is advancing next-generation ePMR and HAMR drives to deliver cutting-edge areal density improvements and performance innovation, with HAMR ramp anticipated in the first half of calendar 2027 following accelerated qualification timelines. The company expects to maintain capital expenditure as a percentage of revenue within the 4%-6% range on a run-rate basis even with HAMR ramp, while continuing disciplined free cash flow generation and capital returns to shareholders through share repurchases and dividend increases.
Based on recent SEC filings and earnings calls, WESTERN DIGITAL CORP (WDC) has provided the following forward guidance: Gross margin: 51%-52% (Q4 FY2026); Operating expenses: $385 million-$395 million (Q4 FY2026).