Investment Rating - The report assigns a positive outlook for Western Digital (WDC), indicating strong performance driven by AI-related demand and robust customer agreements [1][2]. Core Insights - In FY2025Q4, Western Digital achieved Non-GAAP revenue of $2.605 billion, a year-over-year increase of 30% and a quarter-over-quarter increase of 14%, exceeding guidance [2][7]. - The Non-GAAP gross margin was reported at 41.3%, up 6.1 percentage points year-over-year and 1.2 percentage points quarter-over-quarter, significantly above company guidance [2][7]. - The company has secured long-term purchase orders with major clients, ensuring strong demand through FY2026 [2][3]. Summary by Sections Overall Performance - FY2025Q4 Non-GAAP revenue reached $2.605 billion, with a Non-GAAP gross margin of 41.3% and a Non-GAAP net profit of $600 million, up from $487 million in the previous quarter [2][7]. Inventory - The inventory turnover days for FY2025Q4 were 76 days, with an inventory value of $1.3 billion [10]. Revenue by End Market - Cloud revenue was $2.329 billion, accounting for 90% of total revenue, with a year-over-year growth of 36% [11]. - Client revenue was $14 million, showing a modest growth of 2% year-over-year [11]. - Consumer revenue was $136 million, down 12% year-over-year due to decreased product prices and shipment volumes [11]. Business Progress - The company delivered 190 exabytes of data, a 32% increase year-over-year, driven by strong nearline shipments and sales of high-capacity hard drives [17]. - 90% of the business is focused on cloud services, with significant contributions from large-scale clients [3][17]. FY2026Q1 Guidance - The company expects a revenue midpoint of $2.7 billion for FY2026Q1, with a Non-GAAP gross margin forecasted between 41% and 42% [4][18]. - Operating expenses are anticipated to slightly increase to a range of $370 million to $380 million [4][18].