Western Digital Q4 FY2025 earnings: cloud storage demand drives sharp profit rebound
Western Digital's hard-drive business swung back to solid profit as data centers kept buying storage for AI and cloud workloads.
| Q4 2025 | Reported |
|---|---|
| EPS | $0.75 |
| Revenue | $2.60B |
Figures as reported by the company to the SEC for the quarter ended June 27, 2025. Analyst estimates are not part of a filing, so no comparison to expectations is shown.
Key takeaways
- Revenue for the quarter ended June 27, 2025 came in at $2.61 billion, up 30% from a year earlier, and the company said both revenue and gross margin landed above the high end of its own guidance range.
- Net income rebounded sharply to $282 million, compared with just $39 million in the same quarter a year ago — a sign that pricing and demand for hard drives strengthened significantly.
- Cloud and data-center customers made up about 90% of revenue, reflecting how hyperscale companies are buying large volumes of storage to support AI training, inference and general data growth.
- Western Digital is now a standalone hard-drive company after completing the separation of its flash-memory business (SanDisk) in February 2025; that split included one-time accounting effects, which is part of why trailing-twelve-month profitability metrics (like net margin running higher than operating margin) look unusually elevated and shouldn’t be read as a normal ongoing run rate.
- For the full fiscal year, revenue reached $9.52 billion, up 51% from the prior year, as demand for higher-capacity nearline drives used in data centers continued to grow.
- The company strengthened its balance sheet during the quarter, cutting debt by $2.6 billion, starting its first-ever cash dividend, and announcing a $2.0 billion share buyback program.
- CEO Irving Tan said the company “executed well” in the quarter, crediting strong execution and free cash flow generation alongside the above-guidance results.
- Looking ahead, Western Digital guided for the next quarter (Q1 fiscal 2026) to revenue of about $2.7 billion, up roughly 22% year over year at the midpoint, with non-GAAP gross margin near 41.5% and non-GAAP earnings per share around $1.54.
Q4 2025 in context
| Metric | Jun 2025 | Jun 2024 | Change |
|---|---|---|---|
| Revenue | $2.6B | $2.0B | +30.0% |
| Net income | $282M | $39M | +623.1% |
| Free cash flow | $675M | $250M | +170.0% |
| Diluted EPS | $0.75 | $0.08 | +837.5% |
| Gross margin | 41.0% | 34.8% | +6.2 pts |
| Net margin | 10.8% | 1.9% | +8.9 pts |
Figures for the quarter ended Jun 2025 and the quarter ended Jun 2024, as reported to the SEC.
How the stock took it
Western Digital Corp closed at $76.07 on Aug 13, 2025, the last session before the report, and at $75.06 on Aug 15, 2025, the first session after it — -1.3% across the report.
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Sources: company report · earnings call