NASDAQ$WDC

Western Digital Corporation · Q2 2025 earnings

Q2 2025 earnings · · After market close · Investor relations

Briefing

Reported a sequential revenue increase driven by Cloud and Consumer segments, with strong HDD performance offsetting Flash pricing pressures.

Western Digital reported fiscal second quarter 2025 results with revenue of $4.29 billion, a 5% increase sequentially. GAAP EPS was $1.63 and Non-GAAP EPS was $1.77. The company anticipates fiscal third quarter revenue to be between $3.75 billion and $3.95 billion.

  • Second quarter revenue reached $4.29 billion, marking a 5% sequential increase.
  • GAAP EPS for the second quarter stood at $1.63, while Non-GAAP EPS was $1.77.
  • Cloud revenue experienced a 6% sequential growth, while Client revenue decreased by 3% sequentially, and Consumer revenue increased by 14% sequentially.
  • The company expects fiscal third quarter 2025 revenue to range from $3.75 billion to $3.95 billion.

Headline financials

Total Revenue

$4.29B

Previous: $3.03B+41.3%
EPS (adj)

$1.77

Previous: -$0.93+290.3%
Capital Expenditures

-$212M

Previous: -$274M+22.6%
Free Cash Flow

$291M

Previous: -$561M+151.9%
Net Income

$594M

Previous: -$287M+307.0%
Operating Income

$852M

Previous: -$210M+505.7%
Gross Profit

$1.52B

Previous: $492M+208.1%
R&D Expense

$502M

Previous: $444M+13.1%
Stock-Based Comp

$77M

Previous: $72M+6.9%

Revenue & EPS history

Western Digital · Revenue · Quarterly

$4.29B

Q2 2025+41.3%vs Q2 2024
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Western Digital expects fiscal third quarter 2025 revenue to be in the range of $3.75 billion to $3.95 billion and Non-GAAP EPS in the range of $0.90 to $1.20.

Tailwinds

  • Revenue expected to be between $3.75 billion and $3.95 billion.
  • Gross margin expected to be between 31.0% and 33.0% (GAAP).
  • Gross margin expected to be between 31.5% and 33.5% (Non-GAAP).
  • Operating expenses expected to be between $790 million and $810 million (GAAP).
  • Operating expenses expected to be between $700 million and $720 million (Non-GAAP).

Headwinds

  • Interest and other expense, net expected to be approximately $100 million.
  • Tax rate is expected to be between 14.0% and 16.0% (Non-GAAP).
  • Diluted earnings per share expected to be between $0.90 and $1.20 (Non-GAAP).
  • Diluted shares outstanding expected to be approximately 358 million.
  • Unspecified charges excluded from Non-GAAP gross margin, operating expenses and diluted earnings per share, cannot be further allocated or quantified with certainty.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2025

Historical avgQ2 2025

-0.7%

Avg return

Earnings day

-0.5%

Avg return

5 days after

+2.9%

Avg return

30 days after

51%

36 / 71 earnings

Positive

+23.6%

Q4 2012

Best reaction

-17.7%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+1.6%+12.7%+28.7%
Q2 2026-11.4%-3.2%+0.5%
Q1 2026+14.4%+15.9%+18.2%
Q3 2025+8.0%+10.9%+26.9%
Q2 2025+4.7%+1.6%+3.1%
Q1 2025+4.3%+2.5%-0.3%
Q4 2024-4.2%-9.8%+3.8%
Q3 2024+2.6%+1.8%+7.6%
Q2 2024+0.3%+0.2%-3.4%
Q1 2024+3.0%+10.4%+21.4%
Q4 2023+2.0%+3.4%+1.2%
Q3 2023+0.4%-1.3%+19.6%
Q2 2023-2.1%-2.2%-13.2%
Q1 2023+0.6%+1.2%+5.8%
Q4 2022-4.7%-4.5%-16.5%
Q3 2022+6.0%+23.3%+24.4%
Q2 2022-8.6%-3.7%-3.0%
Q1 2022-5.7%-0.8%+4.1%
Q4 2021+1.4%+2.2%-7.2%
Q3 2021+0.0%-4.7%+6.6%
Q2 2021+6.1%+8.9%+28.8%
Q1 2021-5.5%-8.2%+13.7%
Q4 2020-16.7%-16.5%-14.7%
Q3 2020-15.2%-15.5%-7.0%
Q2 2020-1.9%+2.5%-16.8%
Q1 2020-17.7%-12.5%-19.8%
Q4 2019-1.9%-6.8%+1.2%
Q3 2019+0.4%-0.2%-22.1%
Q2 2019+14.7%+13.1%+31.6%
Q1 2019-15.6%-21.0%-9.6%
Q4 2018-5.9%-7.2%-15.6%
Q3 2018-5.9%-7.1%+0.5%
Q2 2018+3.0%+0.1%+2.5%
Q1 2018-0.2%+2.3%+6.3%
Q4 2017-8.6%-7.8%-2.9%
Q3 2017+5.3%+3.2%+6.4%
Q2 2017+3.2%+4.2%-1.8%
Q1 2017+11.1%+9.0%+14.8%
Q4 2016-11.1%-15.7%-12.2%
Q3 2016-11.3%
Q2 2016+9.8%
Q1 2016+1.0%
Q4 2015+11.2%
Q3 2015-3.1%
Q2 2015-1.1%
Q1 2015+3.0%
Q4 2014-0.9%
Q3 2014-5.9%
Q2 2014-2.0%
Q1 2014+3.6%
Q4 2013-6.3%
Q3 2013-1.2%
Q2 2013+0.9%
Q1 2013-1.3%
Q4 2011-1.8%
Q4 2012+23.6%
Q3 2012-12.1%
Q2 2012+6.5%
Q1 2012-3.6%
Q3 2011-3.1%
Q2 2011-2.1%
Q1 2011-1.5%
Q4 2008+2.2%
Q4 2010+2.2%
Q3 2009-2.8%
Q3 2010-2.8%
Q2 2010+0.6%
Q1 2009+0.3%
Q1 2010+0.3%
Q4 2009+0.3%
Q2 2009+0.3%

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