Western Digital Corporation (WDC)

Western Digital topped expectations on both EPS and revenue, with preliminary results for the first fiscal quarter of 2027 (period ended October 2, 2026) reported October 22, 2026 showing revenue rose 55.5% to about $4.4 billion, up from roughly $2.8 billion a year ago. EPS of $4.64 topped the $4.11 estimate (+12.9%), while revenue of $4.381 billion topped the $4.144 billion estimate (+5.7%). Profitability metrics were elevated in the quarter, with gross margin at roughly 58% and operating margin around 47%, as gross profit came in near $2.5 billion and operating income was about $2.0 billion. Net income increased 50.5% to roughly $1.8 billion, compared with about $1.2 billion a year earlier. The company generated operating cash flow of about $1.6 billion, and it returned cash to shareholders through roughly $1.0 billion of share repurchases and about $56.0 million in dividends.