Q1 FY27 Earnings Beat and Strong Margin Expansion

WESTERN DIGITAL $WDC Q1’27 EARNINGS HIGHLIGHTS 🔹 Revenue: $4.38B (Est. $4.13B) 🟢; +55% YoY 🔹 Adj. EPS: $4.64 (Est. $4.07) 🟢; +161% YoY 🔹 GAAP EPS: $4.63 🔹 Adj. Gross Margin: 58.1%; +1,420 bps YoY Q2 FY27 Guide: 🔹 Revenue: $5.00B-$5.20B (Est. $4.57B) 🟢 🔹 Adj. EPS: $5.60-$6.00 (Est. $4.78) 🟢 🔹 Adj. Gross Margin: 60%-61% 🔹 Operating Expenses: $400M-$410M 🔹 Interest and Other Expense, Net: ~$15M 🔹 Tax Rate: ~17% 🔹 Diluted Weighted Average Shares: ~380M Cash Flow: 🔹 Operating Cash Flow: $1.60B 🔹 Free Cash Flow: $1.38B (Est. $1.54B) 🔴 Other Q1 Metrics: 🔹 Adj. Oper Income: $2.15B (Est. $1.9B) 🟢 🔹 Adj. Oper Margin: 49.1%; +1,870 bps YoY Capital Return: 🔹 Repurchases of Common Stock: $1.00B 🔹 Cash Dividend: $0.175/share; raised 17% Comments: 🔸 “Fiscal 2027 is off to a strong start, with results exceeding expectations, driven by robust customer demand and disciplined execution.”