Western Digital(US:WDC) 美股IPO·2025-11-01 03:40Core Viewpoint - Western Digital (WDC) reported strong Q1 FY2026 earnings, exceeding analyst expectations in revenue, operating income, and earnings per share, driven by increased demand for AI and cloud data storage [1][3][10] Financial Performance - Revenue for Q1 FY2026 reached $2.818 billion, a 27% year-over-year increase, surpassing market expectations of $2.73 billion [3][19] - Non-GAAP earnings per share were $1.78, exceeding analyst forecasts by 12.9% [3][19] - Gross margin improved to 43.9%, up 660 basis points year-over-year, reflecting a shift towards higher-capacity drives and effective cost control [4][20] - Operating income was $856 million, with an operating margin of 30.4%, indicating strong operational efficiency [4][20] Market Dynamics - Approximately 90% of Western Digital's sales come from cloud storage customers, highlighting the growing demand for scalable data storage driven by AI applications [5][10] - The company has experienced five consecutive quarters of revenue growth, suggesting a positive shift in the storage industry cycle [5][10] - Analysts project a 14.9% revenue growth for Western Digital over the next 12 months, indicating strong momentum for new products and services [8] Strategic Initiatives - Western Digital plans to increase hard drive prices to address strong demand and has established an AI-focused testing lab to better serve enterprise clients [7][10] - The company has secured long-term purchase orders from its top seven customers, ensuring visibility into future demand [16][19] - The transition to higher-capacity drives is being accelerated, with over 2.2 million units of the latest ePMR products shipped in the last quarter [10][19] Future Outlook - For Q2 FY2026, Western Digital expects revenue of approximately $2.9 billion and earnings per share of $1.88, both above analyst expectations [10][22] - The company anticipates continued strong free cash flow generation and has increased its dividend by 25% to $0.125 per share, reflecting confidence in long-term business strength [10][22] - The ongoing demand for AI-driven data infrastructure is expected to sustain growth, despite macroeconomic uncertainties [18][22]