Western Digital 2025 Q3 Earnings Strong Performance with Net Income Surging 285.2%

Western Digital (WDC) reported its fiscal 2025 Q3 earnings on Apr 30th, 2025. The company exceeded expectations with significant revenue and net income growth, driven by heightened demand in cloud services and successful technological advancements. Western Digital also raised its guidance for the upcoming fiscal quarter, projecting continued revenue growth, supported by strong data center demand. The company's disciplined approach to capital expenditures and strategic hiring post-separation further underscores its commitment to sustainable growth.

Revenue

Western Digital's total revenue increased by 30.9% to $2.29 billion in 2025 Q3, compared to $1.75 billion in 2024 Q3.

Earnings/Net Income

Western Digital's EPS rose 317.1% to $1.46 in 2025 Q3 from $0.35 in 2024 Q3, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $520 million in 2025 Q3, marking 285.2% growth from $135 million in 2024 Q3. The EPS reflects a robust financial performance.

Price Action

The stock price of Western Digital has edged up 2.05% during the latest trading day, surged 16.34% during the most recent full trading week, and climbed 7.98% month-to-date.

Post-Earnings Price Action Review

The post-earnings impact on Western Digital's stock price has shown positive trends across various time frames, indicating potential for short-term price appreciation following earnings releases. Backtest results reveal win rates for revenue, net income, and EPS at 51.36%, 54.07%, and 57.26%, respectively. The maximum returns observed following earnings reports were 5.47% over 30 days. These data points suggest that investors may find opportunities for price gains in the wake of the company's earnings announcements.

CEO Commentary

Irving Tan, Chief Executive Officer, emphasized that Western Digital has a strong foundation and immense potential to harness the growing demand driven by AI and data. He noted the successful shipment of over 800,000 high-capacity drives and the swift qualification of HAMR technology with key hyperscale customers. Tan highlighted the importance of maintaining close collaboration with customers to ensure visibility in a complex supply chain. He expressed optimism about the business, citing robust demand from hyperscale customers and ongoing improvements in operational excellence, despite potential uncertainties in enterprise and retail segments due to tariffs.

Guidance

For the upcoming fiscal fourth quarter, Western Digital expects revenue in the range of $2.45 billion, plus or minus $150 million, with a gross margin between 40% and 41%. The company anticipates continued revenue growth driven by strong data center demand and plans to maintain a disciplined approach to capital expenditures while hiring critical positions post-separation.

Additional News

In recent weeks, Western Digital has completed the planned separation of its Flash business, forming a new company, Sandisk Corporation. Don Bennett has been appointed as the interim Chief Financial Officer following the departure of Wissam Jabre. Furthermore, Western Digital announced the introduction of a quarterly cash dividend program, with an initial dividend of $0.10 per share payable on June 18, 2025. These strategic moves reflect the company's focus on optimizing its business structure and enhancing shareholder value.