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Mar 28, 2025
Western Digital Q3 2025 Earnings Report
Western Digital reported strong Q3 2025 results with revenue hitting the top end of guidance and a significant increase in profitability.
Key Takeaways
Western Digital delivered a solid quarter with $2.29B in revenue and over $750M in net income, aided by higher gross margins and strength in the cloud segment.
Revenue reached $2.29B, up 31% year-over-year.
Net income surged to $755M on a GAAP basis.
Gross margin expanded to over 40%.
The company adopted a new quarterly dividend program at $0.10 per share.
Forward Guidance
Western Digital expects Q4 FY25 revenue between $2.3B and $2.6B, with non-GAAP EPS of $1.25 to $1.65, maintaining strong margins and cost discipline.
Positive Outlook
- Revenue guidance midpoint of $2.45B suggests sequential growth.
- Non-GAAP EPS expected to grow to $1.45 +/- $0.20.
- Gross margin projected to remain strong between 40.0% and 41.0%.
- Operating expenses expected to decline further on a non-GAAP basis.
- Dividend program initiation reflects confidence in cash flow generation.
Challenges Ahead
- Consumer and Client segments showing sequential and annual declines.
- Uncertainty in geopolitical and tariff environments may impact performance.
- Lower nearline HDD bit shipments affecting cloud sequential revenue.
- Significant unrealized loss on retained interest in Sandisk ($606M).
Historical Earnings Impact
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Avg. Return Before/After Earnings
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