Western Digital(US:WDC) 智通财经网·2025-10-30 23:41Core Viewpoint - Western Digital reported strong Q3 2025 results, exceeding analyst expectations in revenue, operating profit, and earnings per share, leading to a significant increase in stock price [1][2]. Financial Performance - Q3 revenue reached $2.82 billion, a year-over-year increase of 27.4%, surpassing analyst expectations of $2.74 billion by 2.8% [1]. - Adjusted earnings per share (EPS) were $1.78, exceeding the forecast of $1.58 by 12.9% [1]. - Adjusted operating profit was $856 million, above the expected $756.4 million, with an operating margin of 30.4%, exceeding expectations by 13.2% [1]. - Free cash flow improved significantly to $599 million, compared to a negative $61 million in the same quarter last year [1]. - Inventory turnover days increased to 80 days, up from 76 days in the previous quarter [1]. Market Environment - The CEO highlighted strong operational performance driven by growing demand for cloud data storage [2]. - Western Digital has experienced a decline in revenue over the past five years, averaging a 9.4% annual decrease, indicating relatively lower business quality compared to industry standards [2]. - The semiconductor industry is characterized by cyclical trends, necessitating preparedness for alternating periods of high growth and revenue contraction [2]. Future Outlook - Analysts project a 14.9% revenue growth for Western Digital over the next 12 months, indicating stronger momentum from new products and services [3]. - The rise of generative AI is expected to significantly impact large enterprises, with Western Digital gaining market attention despite being less known compared to giants like NVIDIA and AMD [3]. - Current inventory turnover days stand at 80, which is 34 days lower than the five-year average, suggesting no immediate signs of excessive inventory buildup [3].