WDC · 8-K · 20260805PR053305
Operating Income and Margins
WESTERN DIGITAL CORP · 2026-08-05 · Importance 62 · Surprise 46 · No source text
Q4FY26 GAAP operating income rose 130% year over year to $1,563 million from $680 million and increased 31% sequentially from $1,190 million. GAAP operating margin expanded to 41.7% from 26.1% a year earlier and 35.7% in Q3FY26. Fiscal 2026 GAAP operating income increased 91% to $4,453 million, with operating margin rising to 34.5% from 24.5%.
Key facts
- GAAP Q4FY26 operating income: $1,563 million, up 130% year-over-year and up 31% sequentially source
- Non-GAAP Q4FY26 operating income: $1,655 million, up 126% year-over-year and up 29% sequentially source
- GAAP diluted net income attributable to common shareholders in Q4FY26: $3,195 million, up 1215% year-over-year and up 1% sequentially source
- GAAP diluted net income per common share in Q4FY26: $8.21, up 1125% year-over-year and flat sequentially source
- Non-GAAP diluted net income attributable to common shareholders in Q4FY26: $1,382 million, up 130% year-over-year and up 32% sequentially source
- Fiscal year 2026 GAAP operating income: $4,453 million, up 91% year-over-year source
- Non-GAAP diluted net income per common share in Q4FY26: $3.56, up 109% year-over-year and up 31% sequentially source
- GAAP Q4FY26 operating margin: 41.7%, up 1560 basis points year-over-year and up 600 basis points sequentially source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | positive | realized | +78.8% | GAAP diluted net income attributable to common shareholders in Q4FY26: $3,195 million, up 1215% year-over-year and up 1% sequentially |
| operating_income | positive | realized | +56.5% | Fiscal year 2026 GAAP operating income: $4,453 million, up 91% year-over-year |
| operating_income | positive | realized | +24.6% | Non-GAAP Q4FY26 operating income: $1,655 million, up 126% year-over-year and up 29% sequentially |
| operating_income | positive | realized | +23.6% | GAAP Q4FY26 operating income: $1,563 million, up 130% year-over-year and up 31% sequentially |
| net_income | positive | realized | +20.9% | Non-GAAP diluted net income attributable to common shareholders in Q4FY26: $1,382 million, up 130% year-over-year and up 32% sequentially |
| margin | positive | realized | +16.1% | Non-GAAP Q4FY26 operating margin: 44.2%, up 1610 basis points year-over-year and up 560 basis points sequentially |
| margin | positive | realized | +15.6% | GAAP Q4FY26 operating margin: 41.7%, up 1560 basis points year-over-year and up 600 basis points sequentially |
| margin | positive | realized | +10.0% | Fiscal year 2026 GAAP operating margin: 34.5%, up 1000 basis points year-over-year |
| net_income | negative | probable | -0.9% | Company expects Q1FY27 non-GAAP diluted net income per common share guidance to exclude items totaling approximately $70 million |
| net_income | positive | realized | — | GAAP net income from continuing operations for Q4FY26: $3,195 million |