Western Digital Corporation Q2 2026 Earnings Recap

Western Digital reported exceptional financial performance in Q2 FY2026, with revenues soaring 25% year-over-year to $3 billion, largely propelled by strong demand in the AI-driven data economy.

Key Takeaways

• Earnings per share rose to $2.13, exceeding guidance and reflecting a 78% year-over-year increase.
• Revenue from the cloud segment comprised 89% of total sales, showcasing a 28% growth, primarily from high-capacity nearline drives.
• Gross margin improved significantly to 46.1%, driven by a product mix shift towards higher capacity solutions and effective cost management.
• Over 215 exabytes of data were delivered, a 22% increase year-over-year, indicating robust demand for their latest storage technologies.
• The company has secured long-term purchase agreements with key customers, reinforcing confidence in its capability to meet future exabyte storage needs.