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WD Reports Fiscal Third Quarter 2026 Financial Results
“WD started calendar year 2026 with great execution, driving strong sequential and year-over-year revenue growth in all our end markets, while expanding gross and operating margins. Gross margin exceeded 50%, reflecting our continued delivery of innovation across an expanding set of customers. Given our confidence in the durability of our business, we are also announcing a 20% increase in the quarterly cash dividend on the company’s common stock to $0.15 per share,” said Irving Tan, CEO of WD. “The demand drivers are clear: Virtually every AI workload, from training, inference, agentic AI to physical AI, creates data that is stored persistently and cost-efficiently on HDDs.”
Q3FY26 Highlights:
- Revenue of $3.34 billion, up 45% year-over-year
- GAAP gross margin of 50.2%; non-GAAP gross margin of 50.5%
- GAAP diluted EPS of $8.20; non-GAAP diluted EPS of $2.72
- Cash flow from operations of $1.12 billion; free cash flow of $978 million
- Q4FY26 revenue expected to be up 36% to 44% year-over-year
- Q4FY26 non-GAAP gross margin expected to be in the range of 51% to 52%
Business Outlook for Fiscal Fourth Quarter of 2026
“Our business continues to strengthen with visibility extending as we continue to build momentum across all our end markets, driven by innovation, strong customer engagements, and disciplined execution. We have also strengthened our balance sheet while deploying our robust free cash flow to drive shareholder returns,” said Kris Sennesael, CFO of WD. “For our fiscal fourth quarter of 2026, at the mid-point of the ranges provided in the table below, we expect revenues of $3.65 billion, non-GAAP gross margin of 51.5%, with non-GAAP EPS of $3.25.”
Dividend
WD’s Board of Directors declared a cash dividend of $0.15 per share of the company’s common stock, which will be paid on June 17, 2026 to stockholders of record as of the close of business on June 5, 2026.
