Western Digital Corporation

Western Digital Corporation managed to exceed Wall Street’s revenue and earnings expectations. Total revenue for the quarter reached $2.75 billion, indicating a 3% sequential increase but a 26% decline year-over-year, with a non-GAAP loss per share at $1.76. The expansive opportunity in the cloud sector, propelled by ongoing infrastructure expansion and high-speed networks, positions Western Digital favorably. The standout feature in the consumer end market is the robust performance of the SanDisk brand and high-performance SSDs for gaming enthusiasts. In HDD, the industry-leading 26-terabyte UltraSMR drive achieved remarkable success, becoming the highest near-line volume runner in just two quarters. Demand in consumer and client sectors exceeded expectations, while cloud demand for both hard drive and flash products remained subdued. As the company moves forward, the flash business anticipates a modest bit and ASP improvement, coupled with a decline in underutilization charges, driving sequential revenue and gross margin improvement. In HDD, expectations include higher nearline shipments, seasonal demand in the consumer end market, and ongoing value-based price efforts, fostering sequential revenue and gross margin improvement throughout fiscal year 2024. Western Digital’s strategic choices and execution against its HDD product roadmap position it for profitable growth in the years ahead.