Western Digital CorporationWDC
NasdaqGS•Technology•Computer Hardware
Western Digital Corporation develops, manufactures, and sells data storage devices and solutions based on hard disk drive (HDD) technology in the United States, Asia, Europe, the Middle East, and Africa. The company offers internal HDDs, data center drives, data center platforms, external drives, portable drives, NAS for home and office, and accessories. It sells its data storage devices and solutions through its computer manufacturers, sales personnel, dealers, distributors, and retailers. The company has a collaboration with Open Quantum Design for the development of quantum error correction technology and related systems to advance reliable quantum computing. Western Digital Corporation was founded in 1970 and is headquartered in San Jose, California.
Western Digital Corporation (WDC) reported trailing twelve months revenue of $8.02B as of April 2026, a 44.5% decline year-over-year. Quarterly revenue reached $3.34B, reflecting a contraction in sales.
Western Digital Corporation generated $6.51B in TTM net income, with quarterly EBITDA of $1.29B. The operating margin expanded from 33.1% to 35.7%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (35.7%) and net margin (96.0%) indicates tight cost control with minimal non-operating drag. Net margin has improved from 22.7% a year ago, signaling stronger bottom-line efficiency.
WDC trades at a P/E of 15.5x (in line with broad market averages) and a P/S of 12.6x. The price-to-book ratio of 10.4x indicates a significant premium over book value.
The company generated $978.00M in free cash flow over the trailing twelve months, a 158.0% increase year-over-year, indicating cash generation ability. The balance sheet shows $15.04B in total assets with $1.58B in long-term debt against $9.68B in stockholders equity for a debt-to-equity ratio of 0.2, a conservative capital structure. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are expanding at ~21.6%, suggesting durable pricing power and cost discipline.
ROE averages 29.8% but has fluctuated — the competitive advantage may be cyclical or emerging.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
Revenue has been flat or declining over recent quarters, which may indicate eroding demand or competitive pressure.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~23.9% — no sign of cost or pricing stress.
FCF consistently trails net income (avg 1.4x) — earnings may be inflated by non-cash items or aggressive accounting.
D/E ratio is 0.2 — conservative capital structure with low financial risk.
TTM revenue has contracted 42.9% — significant decline indicating deteriorating demand.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares outstanding rose 3.6% — mild dilution. Compare to earnings growth to assess net per-share impact.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation