WDC · Western Digital · Q1 FY2027
Western Digital Accelerates Growth as Margins Widen
Revenue growth accelerated to 55.5% from 43.8%, and operating margin widened 1860 basis points to 46.7%.
- Published
- Oct 23, 2026
- Event
- Oct 22, 2026
- Quarter ended
- Oct 2, 2026
- Data as of
- Oct 23, 2026
Published becauseQuarterly results were reported; guidance was introduced (Oct 22, 2026).
The Blockhaven read
Western Digital's quarter moved in one direction: revenue growth accelerated to 55.5% from 43.8% and operating margin widened 1860 basis points to 46.7%. GAAP operating income rose 158.3% against 55.5% revenue growth, so profit grew faster than sales, with the wider margin accounting for the gap. A single quarter shows a direction, not yet a trend.
Latest reported quarter
13-week quarter · Earnings release filed Oct 22, 2026
RevenueGAAP
- Latest
- $4.38 billion
- Year ago
- $2.82 billion
- Change
- +55.5% (Up year over year)
Operating incomeGAAP
- Latest
- $2.05 billion
- Year ago
- $792 million
- Change
- +158.3% (Up year over year)
Net incomeGAAP
- Latest
- $1.78 billion
- Year ago
- $1.18 billion
- Change
- +50.5% (Up year over year)
Diluted EPSGAAP
- Latest
- $4.63
- Year ago
- $3.07
- Change
- +50.8% (Up year over year)
Operating margin (GAAP)Derived
- Latest
- 46.7%
- Year ago
- 28.1%
- Change
- +1860 bp (Up year over year)
Gross margin (GAAP)Derived
- Latest
- 57.8%
- Year ago
- 43.5%
- Change
- +1430 bp (Up year over year)
| Measure | Basis | Latest quarter | Year ago | Change |
|---|---|---|---|---|
| Revenue | GAAP | $4.38 billion | $2.82 billion | +55.5% (Up year over year) |
| Operating income | GAAP | $2.05 billion | $792 million | +158.3% (Up year over year) |
| Net income | GAAP | $1.78 billion | $1.18 billion | +50.5% (Up year over year) |
| Diluted EPS | GAAP | $4.63 | $3.07 | +50.8% (Up year over year) |
| Operating margin (GAAP) | Derived | 46.7% | 28.1% | +1860 bp (Up year over year) |
| Gross margin (GAAP) | Derived | 57.8% | 43.5% | +1430 bp (Up year over year) |
Revenue growth +55.5% against +43.8% in the prior quarter (year over year, GAAP).
Trend: Accelerating. Revenue growth accelerated, operating margin widened and GAAP operating income improved.
Guidance: Provided
- Fiscal Q2 2027 adjusted EPS: about $5.80 (non-GAAP)
GAAP unless labelled. Non-GAAP and company-defined measures are labelled.
What changed
- Revenue growth accelerated to 55.5% from 43.8%.
- Operating margin widened 1860 basis points year over year, to 46.7% from 28.1% (GAAP).
- GAAP operating income rose 158.3% year over year, with net income 50.5% and diluted EPS 50.8% moving the same way.
Why it matters
Operating income grew 158.3% on 55.5% revenue growth: the margin change accounts for the difference between the two rates.
Net income grew more slowly than operating income: the difference sits below the operating line.
Market reaction
At 8:15 AM ET on Oct 23, 2026, the quoted share price was down 2.9% from the prior close. This is a timed price observation, not an explanation of the move.
What to watch
- Operating margin at the next report against 46.7% this quarter: a further move in the same direction would confirm this reading, and a reversal would weaken it.
- Year-over-year revenue growth against 55.5% now and 43.8% before: holding above these levels would confirm the acceleration, and a slide back would weaken it.
Data and sources
Figures come from the company's SEC filings and its own 8-K earnings release, filed Oct 22, 2026. GAAP figures are labelled as such. Blockhaven used no outside forecasts, so no figure here is measured against market expectations.
Descriptive company facts. Not investment advice, a rating or a recommendation.