- Western Digital reported fiscal Q1 2027 adjusted EPS of $4.64, beating the $4.08 analyst expectation, with revenue up 55% year over year to $4.38 billion versus $4.14 billion consensus.
- Q2 revenue guidance of $5.0 billion to $5.2 billion and adjusted EPS guidance of $5.60 to $6.00 exceeded analyst models; the $5.1 billion revenue midpoint sits about 12% above the $4.57 billion consensus.
- Non-GAAP gross margin expanded to 58.1% from 43.9% a year earlier, and operating margin reached 49.1%.
- The company raised its quarterly cash dividend 17% to $0.175 per share, payable Dec. 17 to holders of record as of Dec. 4.
- Shares initially rose about 4% on the results, then reversed sharply lower after the earnings call as management flagged rising input costs and higher capital expenditures.
- Management expects capex to average 4% to 6% of revenue over the next five years, running modestly higher over the next two years.
- Bloomberg Intelligence attributed a roughly three percentage point contraction in free cash flow margin to the tripling of fiscal first-quarter capital spending.
Quotes
“Fiscal 2027 is off to a strong start, with results exceeding expectations, driven by robust customer demand and disciplined execution”