What does Western Digital do and what are its main business segments?

What is the market's earnings forecast for Western Digital next quarter?

Did Western Digital beat or miss consensus estimates last quarter?

What is Western Digital's gross profit margin?

What guidance did Western Digital's management provide for the next earnings period?

What were the key takeaways from Western Digital's earnings call?

What were the key takeaways from Western Digital’s earnings call?

What is Western Digital's latest dividend and current dividend yield?

**Key Takeaways:**
- **Revenue Surge**: $2.8B (+27% YoY), driven by hyperscale demand and 2.2M ePMR/UltraSMR units. 
- **Profitability Boost**: 43.9% gross margin (660bps YoY), with $599M free cash flow. 
- **Strategic Investments**: New test lab accelerates product development; HAMR qualification begins in H1 2026. 
- **Customer Confidence**: 5/7 hyperscale with FY26 POs, 1 with FY27 agreement, and 25% dividend increase. 
- **AI Growth Driver**: 23% exabyte CAGR expected, with HDDs retaining 80% of data center storage share.

**【CEO Summary Section】**
- **AI-Driven Demand Growth**: CEO highlights AI's role in driving data storage needs, citing a medical institution analyzing 7 billion images. 
- **Internal AI Adoption**: 10% productivity gains in manufacturing and 20% in firmware development through AI tools. 
- **Product Shipments**: 2.2 million ePMR/UltraSMR units (70 exabytes) in Q1, with 3 million+ expected in Q2. 
- **New Test Lab**: 25,600 sq.ft. facility for hyperscale customer collaboration, accelerating product qualification. 
- **Customer Commitments**: 5/7 hyperscale customers with FY26 POs, 1 with FY27 agreement, and HAMR qualification for 1 customer in H1 2026. 

**【CFO Financial Commentary】**
- **Revenue Performance**: $2.8B (27% YoY), driven by 31% YoY growth in cloud storage. 
- **Gross Margin**: 43.9% (660bps YoY improvement), benefiting from higher capacity mix and cost control. 
- **Free Cash Flow**: $599M, with $785M returned to shareholders via buybacks and a 25% dividend increase to $0.125/share. 
- **Q2 Guidance**: Revenue $2.9B (20% YoY), EPS $1.88, and gross margin 44-45%. 

**【Q&A Highlights】**
- **Supply-Demand Balance**: 89% of revenue from hyperscale, no seasonality; 2026 supply constrained, 2027+ ramp expected. 
- **HAMR Progress**: Qualification for 1 customer in H1 2026, targeting 3 by end of 2026; 28TB CMR/36TB UltraSMR ePMR in Q1 2026. 
- **Customer Agreements**: 5/7 hyperscale with FY26 POs, 1 with FY27 agreement; ASP stability in hyperscale, 10-15% channel impact from Sep price increase. 
- **AI Spend Impact**: HDDs retain 80% of data center storage share due to TCO advantages; 4-5% of AI CapEx allocated to storage. 
- **SanDisk Stake**: 7.5M shares remaining, plans to monetize by Feb 2026; proceeds may be used for debt reduction or growth investments.

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