Key insights
- Western Digital (WDC) reported first-quarter fiscal 2027 results that surpassed analyst expectations for both earnings and revenue, driven by robust demand for its storage products. The company also provided an upbeat outlook for the second quarter, forecasting revenue and earnings above consensus estimates. Despite the strong performance, the stock's initial gains were erased due to a broader selloff in AI stocks.
Investing.com -- Western Digital Corp. (NASDAQ: WDC) shares initially surged about 4% in after-hours trading following stronger-than-expected quarterly results and upbeat guidance, but subsequently erased the gains as selling in AI stocks continued, extending the sector’s intraday slump.
The storage maker reported adjusted earnings of $4.64 per share for the first quarter of fiscal 2027, beating analyst expectations of $4.08. Revenue climbed 55% year over year to $4.38 billion, topping the $4.14 billion consensus estimate, as demand for its storage products remained robust.
The outlook was even stronger. Western Digital forecast second-quarter revenue of $5.0 billion to $5.2 billion, putting the midpoint of $5.1 billion 12% above analyst expectations of $4.57 billion. Adjusted earnings are expected to reach $5.60 to $6.00 per share, with the $5.80 midpoint exceeding the $4.82 consensus by about 20%.
“Fiscal 2027 is off to a strong start, with results exceeding expectations, driven by robust customer demand and disciplined execution,” CEO Irving Tan said.
Non-GAAP gross margin expanded to 58.1% from 43.9% a year earlier, while operating margin reached 49.1%. Adjusted earnings per share surged 161% year over year, Tan said.
The company generated $1.60 billion in operating cash flow and $1.38 billion in free cash flow during the quarter.
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