Executive Summary
- Western Digital reported QQ2 2025 revenue of USD 4.2855 billion, up 23.95% year over year and 4.64% sequentially, underscoring a favorable demand backdrop for data storage products amid cloud and data-center expansion. Gross profit stood at USD 1.516 billion, yielding a gross margin of 35.38%, while operating income reached USD 0.852 billion and the company delivered a net income of USD 581 million (net margin 13.56%). Earnings per share were USD 1.68 (diluted USD 1.63). These results reflect meaningful margin stability and operating leverage within Western Digital’s storage portfolio.
Key Performance Indicators
QoQ: 14.82% | YoY:212.09%
QoQ: 17.85% | YoY:330.37%
QoQ: 20.00% | YoY:380.00%
Key Insights
Revenue: USD 4.285B, YoY +23.95%, QoQ +4.64%
Gross Profit: USD 1.516B, Gross Margin 35.38%, YoY +51.45%, QoQ -2.26%
Operating Income: USD 0.852B, Operating Margin 19.88%, YoY +212.09%, QoQ +14.82%
Net Income: USD 581M, Net Margin 13.56%, YoY +330.37%, QoQ +17.85%
EPS: USD 1.68 (undiluted), USD 1.63 (diluted); YoY EPS growth +380%, QoQ +20%
Cash Flow: Operating cash flow USD 403M; Free cash flow USD 287M; Net change in cash USD +586M; ending cash USD 2.291B
Liquidity & Balance Sheet: To...
Financial Highlights
Revenue: USD 4.285B, YoY +23.95%, QoQ +4.64%
Gross Profit: USD 1.516B, Gross Margin 35.38%, YoY +51.45%, QoQ -2.26%
Operating Income: USD 0.852B, Operating Margin 19.88%, YoY +212.09%, QoQ +14.82%
Net Income: USD 581M, Net Margin 13.56%, YoY +330.37%, QoQ +17.85%
EPS: USD 1.68 (undiluted), USD 1.63 (diluted); YoY EPS growth +380%, QoQ +20%
Cash Flow: Operating cash flow USD 403M; Free cash flow USD 287M; Net change in cash USD +586M; ending cash USD 2.291B
Liquidity & Balance Sheet: Total assets USD 25.456B; Total liabilities USD 13.111B; Total equity USD 12.346B; Net debt USD 5.075B; Cash and equivalents USD 2.291B
Efficiency & Working Capital: Current ratio 1.99; Quick ratio 1.27; CCC ~100.8 days (DSO 54.6 days, DIO 111.2 days, DPO 64.9 days)
Valuation & Returns: P/E ~6.68x; P/B ~1.29x; EV/EBITDA ~21.9x; Free cash flow yield and balance-sheet strength support long-run upside through deleveraging potential
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
4.29B |
23.95% |
4.64% |
| Gross Profit |
1.52B |
51.45% |
-2.26% |
| Operating Income |
852.00M |
212.09% |
14.82% |
| Net Income |
581.00M |
330.37% |
17.85% |
| EPS |
1.68 |
380.00% |
20.00% |
Key Financial Ratios
operatingProfitMargin
19.9%
operatingCashFlowPerShare
$1.17
freeCashFlowPerShare
$0.83
Management Commentary
Note: No earnings call transcript was provided in the dataset. As a result, management-specific quotes and transcript-driven themes could not be directly extracted. The analysis below synthesizes disclosed financials and the implied operating backdrop, with a qualitative outlook based on industry dynamics.
Forward Guidance
No formal quarterly or full-year guidance was included in the provided dataset. Given the secular tailwinds in data-center and cloud storage, the near-term trajectory for Western Digital will hinge on hyperscale capex timing, NAND/HDD pricing trends, and supply-chain stability. Investors should monitor: (1) data-center storage demand trends and enterprise HDD/SSD mix, (2) any cadence of price stabilization or pressure in enterprise storage, (3) management’s debt reduction or capital allocation plans, and (4) cash conversion and working-capital dynamics as storage demand cycles evolve.