Western Digital's first quarter 2027 results beat expectations as non-GAAP gross margins hit record 58.1%

Western Digital reported first quarter fiscal 2027 results that significantly exceeded analyst estimates on both the top and bottom lines. Driven by robust customer demand for storage infrastructure and disciplined technology transitions, the company achieved a 55% year-over-year revenue increase and a record non-GAAP gross margin.

Key Highlights

• Non-GAAP gross margin expanded to 58.1%, outperforming management's prior guidance range of 55% to 56%.
• Revenue reached $4.38 billion, representing 55% year-over-year growth and a 17% sequential increase from the previous quarter.
• Strong liquidity and execution supported a 17% increase in the quarterly cash dividend to $0.175 per share, backed by $1.38 billion in free cash flow.