WDC WESTERN DIGITAL CORP

Overview and Growth

Fiscal 2026 results for WESTERN DIGITAL CORP combined $12.92B of revenue with net income of $9.42B and an operating cash inflow of $3.93B. The $12.92B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. The top line expanded 35.7% from $9.52B in fiscal 2025, increasing the company’s operating scale. The company reported diluted EPS of $24.28, adding a shareholder-level measure to the absolute income figures considered below. The per-share result recorded a 374.2% increase from fiscal 2025 diluted EPS of $5.12. Revenue equaled 0.93x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

Gross profit was $6.31B, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. The gross-profit relationship equaled 48.9% of revenue, quantifying the portion retained before operating expenses were recognized. Operations produced $4.45B of income after the reported operating expense base, before the remaining non-operating and tax effects. Relative to revenue, operating income represented 34.5%, showing how efficiently sales converted into operating profit. Net income came to $9.42B, completing the progression from revenue through gross and operating profitability to the final reported result. Net margin was 72.9%, meaning that this portion of revenue remained as net income after all recognized expenses. Pretax income was $9.90B, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. The pretax margin was 76.7%, relating income before taxes directly to revenue. The reported income-tax provision was $481.00M, the amount recognized between pretax income and the final net-income result. The effective relationship between income tax and positive pretax income was 4.9%, without assuming a statutory-rate comparison.

Liquidity and Capital Structure

The company held $13.86B of assets against $5.00B of liabilities and $8.86B of equity, revealing how the asset base was financed. The near-term balance sheet paired $5.63B of current assets with $4.24B of current liabilities at the reporting date. Current assets covered current liabilities by 1.33x, leaving a positive buffer for near-term obligations. Cash and equivalents totaled $1.58B, identifying the most liquid reported component available within the broader current-asset balance. Measured only with cash and equivalents, coverage of current liabilities was 37.2%, excluding receivables and other current assets. Total debt was $1.05B, establishing the amount of borrowing carried within the company’s capital structure. The debt-to-equity relationship was 0.12x, showing how much debt the company carried for each unit of book equity. The debt-to-assets relationship was 7.6%, comparing borrowing with the total asset balance. The liabilities-to-assets relationship was 36.1%, placing reported obligations against the full positive asset balance. Measured against total assets, cash and equivalents represented 11.4%, a balance-sheet composition measure rather than a liquidity forecast. Total assets were 1.0% lower than fiscal 2025 assets of $14.00B, measuring the company’s own balance-sheet change.

Cash Flow and Earnings Quality

The company reported $3.93B of operating cash flow, a cash inflow that shows the cash generated by operations. The operating-cash-flow-to-net-income relationship was 0.42x, comparing cash generated by operations with the bottom-line earnings result. The cash-flow statement records $418.00M of capital expenditures, the investment amount considered after operating cash generation. Capital spending absorbed 10.6% of operating cash flow, quantifying the share of cash from operations directed to investment. Free cash flow came to $3.51B, leaving a positive amount after capital expenditures. The free-cash-flow margin was 27.2%, measuring cash remaining after capital spending against revenue. Measured against total assets, free cash flow represented 25.3%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Jul 3, 2026. Analysis generated Oct 21, 2026.