Financial Data and Key Metrics Changes - Revenue for the second quarter of fiscal 2026 was $3 billion, up 25% year-over-year, driven by strong demand for Nearline drives [12] - Earnings per share (EPS) was $2.13, an increase of 78% year-over-year, exceeding guidance [15] - Gross margin improved to 46.1%, up 770 basis points year-over-year and 220 basis points sequentially [13][14] - Operating income was slightly above $1 billion, translating into an operating margin of 33.8% [14] Business Line Data and Key Metrics Changes - Cloud segment represented 89% of total revenue at $2.7 billion, up 28% year-over-year [13] - Client segment accounted for 6% of total revenue at $176 million, up 26% year-over-year [13] - Consumer segment represented 5% of revenue at $168 million, down 3% year-over-year [13] Market Data and Key Metrics Changes - The company shipped over 3.5 million units of its latest generation ePMR products, offering capacities up to 32 TB [12][8] - The company delivered 215 exabytes (EB) to customers, up 22% year-over-year [12] Company Strategy and Development Direction - The company is focusing on AI and cloud storage solutions, emphasizing high-capacity drives and partnerships with hyperscale customers [7][9] - A strategic investment in Qolab was announced to advance next-generation nanofabrication processes [10] - The company is hosting an innovation day to share updated roadmaps for HAMR and ePMR products [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued demand for storage solutions driven by AI and cloud growth [5][6] - The company anticipates revenue for Q3 fiscal 2026 to be around $3.2 billion, reflecting approximately 40% year-over-year growth [17] - Management highlighted a stable pricing environment and ongoing cost reductions, projecting further gross margin expansion [22][23] Other Important Information - The company returned $1.4 billion to shareholders through share repurchases and dividends since the launch of its capital return program [16] - The board approved a quarterly cash dividend of $12.50 per share, payable on March 18, 2026 [16] Q&A Session Summary Question: Gross margin guidance and durability of incremental margin - Management confirmed a gross margin of 46.1% and guidance of 47%-48%, with incremental margins around 75% [20][22] Question: Purchase orders and pricing strategy - Management indicated strong demand and stable pricing, with long-term agreements in place with top customers [27][28] Question: Customer engagement and contracts - The company has developed a customer-centric approach, resulting in longer-term contracts and improved relationships with hyperscale customers [34] Question: UltraSMR mix and gross margins - Management noted an increasing mix of UltraSMR drives, which are beneficial for both customers and profitability [42][43] Question: Yields and reliability of products - Yields on ePMR products are in the low 90s%, with positive feedback on reliability from customers [46] Question: HAMR roadmap and investments - The company has pulled in the HAMR qualification timeline and expects it to be neutral to accretive to gross margins once ramped [55][77] Question: Revenue per exabyte and mix changes - Revenue per exabyte is driven by strong demand from the cloud segment, with stable pricing trends [81] Question: Cost reductions and future expectations - Current cost reductions are around 10% year-over-year, with potential for further reductions as higher capacity drives are adopted [87]

Financial Data and Key Metrics Changes - Revenue for the second quarter of fiscal 2026 was $3 billion, up 25% year-over-year, driven by strong demand for Nearline drives [12] - Earnings per share (EPS) was $2.13, an increase of 78% year-over-year [15] - Gross margin improved to 46.1%, up 770 basis points year-over-year and 220 basis points sequentially [13][14] - Operating income was slightly above $1 billion, translating into an operating margin of 33.8% [14] Business Line Data and Key Metrics Changes - Cloud segment represented 89% of total revenue at $2.7 billion, up 28% year-over-year [13] - Client segment accounted for 6% of total revenue at $176 million, up 26% year-over-year [13] - Consumer segment represented 5% of revenue at $168 million, down 3% year-over-year [13] Market Data and Key Metrics Changes - The company shipped over 3.5 million units of its latest generation ePMR products, offering capacities up to 32 TB [12][8] - The company delivered 215 exabytes (EB) to customers, up 22% year-over-year [12] Company Strategy and Development Direction - The company is focusing on AI and cloud storage solutions, emphasizing higher density storage to meet growing demand [7][9] - Strategic investments include a partnership with Qolab to advance next-generation nanofabrication processes [10] - The company is hosting an Innovation Day to share updated roadmaps for HAMR and ePMR products [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued demand for storage solutions driven by AI and cloud growth [5][6] - The company anticipates revenue for Q3 fiscal 2026 to be $3.2 billion, reflecting approximately 40% year-over-year growth [17] - Management expects gross margin to be between 47%-48% in the next quarter [17] Other Important Information - The company returned $1.4 billion to shareholders through share repurchases and dividends since the launch of its capital return program [16] - The board approved a quarterly cash dividend of $12.50 per share, payable on March 18, 2026 [16] Q&A Session Summary Question: Gross margin durability and cost curve - Management indicated that the gross margin is expected to maintain a high incremental margin flow-through, with cost per terabyte decreasing by about 10% year-over-year [19][20][22] Question: Purchase orders and pricing strategy - Management confirmed that they have firm purchase orders with top customers through 2026 and established long-term agreements (LTAs) for 2027 and 2028, reflecting the value delivered to customers [26][27] Question: Customer engagement and contracts - The company has developed a customer-centric approach, deepening relationships with hyperscale customers, resulting in longer-term contracts [34][35] Question: UltraSMR mix and gross margins - The UltraSMR mix has crossed 50% and is expected to increase, positively impacting gross margins due to its software-based nature [41][43] Question: Yields and reliability - Yields on ePMR products are in the low 90s%, with good feedback on reliability, contributing to cost reductions as yields improve [46] Question: HAMR roadmap and customer interest - The company has pulled in the HAMR qualification timeline and is starting qualifications with multiple hyperscale customers [64][74] Question: Investments related to HAMR - Ongoing investments in HAMR are expected to be neutral to accretive to gross margins once ramped up [55][77] Question: Revenue per exabyte and mix changes - Revenue per exabyte is driven by strong demand from the cloud segment, with stable pricing trends [80][82] Question: Cost reductions and future expectations - Current cost reductions are about 10% year-over-year, with potential for increases as higher capacity drives are adopted [86]

Financial Data and Key Metrics Changes - Revenue for Q2 2026 was $3 billion, up 25% year-over-year, driven by strong demand for Nearline drives [10] - Earnings per share (EPS) was $2.13, an increase of 78% year-over-year [12] - Gross margin improved to 46.1%, up 770 basis points year-over-year and 220 basis points sequentially [11] - Operating income was slightly above $1 billion, translating into an operating margin of 33.8% [11] - Operating cash flow for the quarter was $745 million, with capital expenditures of $92 million, resulting in free cash flow of $653 million [12] Business Line Data and Key Metrics Changes - Cloud segment represented 89% of total revenue at $2.7 billion, up 28% year-over-year [11] - Client segment accounted for 6% of total revenue at $176 million, up 26% year-over-year [11] - Consumer segment represented 5% of revenue at $168 million, down 3% year-over-year [11] Market Data and Key Metrics Changes - The company shipped over 3.5 million units of its latest generation ePMR products, offering capacities up to 32 TB [10][11] - The demand for higher capacity storage solutions is driven by the growth of AI and cloud technologies [5][6] Company Strategy and Development Direction - The company is focusing on increasing drive areal density and accelerating HAMR and ePMR roadmaps to meet customer demands [5][6] - A strategic investment in Qolab was announced to advance next-generation nanofabrication processes [9] - The company is hosting an innovation day to share updated roadmaps for HAMR and ePMR products [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for storage solutions driven by AI and cloud growth [4][5] - The company anticipates revenue for Q3 2026 to be $3.2 billion, reflecting approximately 40% year-over-year growth [14] - Gross margin is expected to be between 47%-48% for the next quarter [14] Other Important Information - The company returned $1.4 billion to shareholders through share repurchases and dividends since the launch of its capital return program [13] - A quarterly cash dividend of $12.50 per share was approved, payable on March 18, 2026 [13] Q&A Session Summary Question: Gross margin guidance and durability of incremental margin - Management confirmed a stable pricing environment and effective cost control, leading to an expected gross margin of 47%-48% [16][18] Question: Purchase orders and pricing strategy - Management highlighted the value delivered to customers and the stable pricing environment, allowing for better economics in long-term agreements [24][26] Question: Customer engagement and contracts - The company has developed a customer-centric approach, resulting in longer-term contracts and improved relationships with hyperscale customers [31][33] Question: UltraSMR mix and gross margins - The UltraSMR mix has crossed 50% and is expected to increase, positively impacting gross margins due to its software-based nature [38][40] Question: Yields and reliability of ePMR products - Yields on ePMR products are in the low 90s%, with positive feedback on reliability from customers [44] Question: HAMR roadmap and investments - The qualification process for HAMR has been pulled forward, with expectations of neutral to accretive gross margins once ramped [53][70] Question: Revenue per exabyte and mix changes - Revenue per exabyte is driven by strong demand from cloud customers, with stable pricing contributing to growth [78]

Core Insights - Western Digital forecasts third-quarter revenue above Wall Street estimates, indicating strong demand for hard drives and flash storage for AI servers driving growth [1] Company Summary - The company is experiencing increased demand for its products, particularly in the AI server market, which is expected to contribute significantly to revenue growth [1]

每经AI快讯，1月30日消息，西部数据第二财季营收30.2亿美元，同比增长25%；经调整每股收益2.13美 元，同比增长78%。西部数据盘后涨超2%。 ...

Core Insights - The data storage company reported a profit of $1.84 billion, which was significantly enhanced by the growth of artificial intelligence [1] Company Performance - The profit figure of $1.84 billion indicates a strong financial performance for the company, driven by advancements in artificial intelligence [1]

Q2FY26 Financial Results Western Digital January 29, 2026 2 WESTERN DIGITAL CORPORATION © 2026 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED Disclaimers Forward-Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws, including statements regarding expectations for: the company's business outlook and financial performance for the fiscal third quarter of 2026 and beyond, and demand and market conditions for our products and gr ...

Financial Performance - Revenue for Q2FY26 was $3.02 billion, representing a 25% increase year over year[5] - GAAP gross margin improved to 45.7%, up 800 basis points from 37.7% in Q2FY25[6] - Operating income reached $908 million, a 62% increase compared to $560 million in Q2FY25[6] - Diluted net income per common share for Q2FY26 was $4.73, a 272% increase from $1.27 in Q2FY25[6] - Net income for the three months ended January 2, 2026, was $1,842 million, a significant increase from $594 million in the same period last year, representing a growth of 210%[26] - GAAP gross profit for the three months ended January 2, 2026, was $1,380 million, compared to $1,227 million for the previous quarter, reflecting a 12.5% increase[28] - Non-GAAP gross profit for the same period was $1,391 million, up from $1,237 million, indicating a growth of 12.4%[28] - The company reported a GAAP operating income of $908 million for the three months ended January 2, 2026, compared to $792 million in the previous quarter, marking a 14.6% increase[28] - Non-GAAP diluted net income from continuing operations attributable to common shareholders was $807 million for the three months ended January 2, 2026, compared to $655 million in the previous quarter, reflecting a growth of 23.2%[30] Cash Flow and Dividends - Free cash flow for the quarter was $653 million, with over 100% returned to shareholders through share repurchases and dividends[4] - Free cash flow for the six months ended January 2, 2026, was $1,252 million, significantly higher than $321 million in the same period last year[30] - The company declared a cash dividend of $0.125 per share, payable on March 18, 2026[9] - Cash and cash equivalents at the end of the period were $1,975 million, down from $2,291 million at the end of the previous quarter[26] Future Guidance - For Q3FY26, revenue is expected to be approximately $3.2 billion, reflecting a 40% year-over-year growth at the mid-point[7] - Non-GAAP gross margin guidance for Q3FY26 is projected at 47.5%[7] Operational Insights - The company continues to focus on high-capacity drives to meet growing data center demand in the AI-driven data economy[4] - The company’s GAAP operating margin for the three months ended January 2, 2026, was 30.1%, compared to 28.1% in the previous quarter[28] - The company’s net cash provided by operating activities for the three months ended January 2, 2026, was $745 million, compared to $672 million in the previous quarter, an increase of 10.8%[30] - The company reported a net cash used in financing activities of $703 million for the three months ended January 2, 2026, compared to a minimal usage of $1 million in the previous quarter[26] Non-GAAP Measures and Adjustments - Non-GAAP gross margin guidance excludes stock-based compensation expense, totaling approximately $10 million[43] - Non-GAAP operating expenses guidance excludes stock-based compensation and other expenses, totaling approximately $40 million to $50 million[43] - Non-GAAP diluted net income per common share guidance excludes items totaling $50 million to $60 million[43] - Non-GAAP diluted weighted average shares include the benefit of 2 million shares from capped call transactions related to convertible senior notes due 2028[43] - Income tax adjustments reflect differences between GAAP and non-GAAP tax rates due to excluded items and non-recurring items[38] - Free cash flow is defined as cash flows from operating activities less capital expenditures, considered useful for strategic opportunities[40] - Business realignment charges may occur to align operations with market demand or achieve cost synergies, deemed not indicative of underlying performance[35] - The company recognizes expenses related to litigation matters that do not reflect operating results and are not indicative of business performance[34] - Adjustments to non-GAAP guidance may include unanticipated changes in GAAP effective tax rates and other non-recurring items[42] - Non-GAAP measures are provided to enhance understanding of underlying business performance and are not reconciled to GAAP due to unpredictability[41]

西部数据第二财季营收30.2亿美元，分析师预期29.6亿美元。 预计第三财季营收31亿-33亿美元，预计 资本开支3.8亿-3.9亿美元。 风险提示及免责条款 市场有风险，投资需谨慎。本文不构成个人投资建议，也未考虑到个别用户特殊的投资目标、财务状况或需要。用户应考虑本文中的任何 意见、观点或结论是否符合其特定状况。据此投资，责任自负。 ...

Group 1 - Western Digital Corporation (NASDAQ:WDC) is a key player in the data storage market, providing various solutions including hard drives and data center platforms [2] - The company has seen significant stock performance, with shares increasing over 200% since a recent purchase, driven by a memory shortage linked to AI data center investments [2] - Major competitors in the memory market, including Micron, Seagate, and Sandisk, have also reported substantial stock increases, with Sandisk more than doubling in value since the beginning of the year [1][2] Group 2 - Despite the strong performance of WDC, some analysts suggest that certain AI stocks may present greater upside potential and lower downside risk [3] - The memory cycles in the data storage industry are noted to be historically short and volatile, prompting some investors to scale down their positions in WDC [2]