Western Digital Corporation Q4 FY2025 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Revenue was 2.6 billion dollars, up 30 percent year over year and above the high end of guidance. This growth was driven primarily by cloud demand and strong shipments of 26 terabyte CMR and 32 terabyte UltraSMR drives.
  • Non-GAAP gross margin was 41.3 percent, up 610 basis points year over year as the company continued shifting mix toward higher capacity drives.
  • Non-GAAP EPS was 1.66 dollars, up 22 percent sequentially and above guidance.
  • Western Digital delivered 190 exabytes in the quarter, up 32 percent year over year.
  • Cloud revenue was 2.3 billion dollars, representing 90 percent of total revenue and growing 36 percent year over year. Client and consumer revenue were each 5 percent of total revenue.

Operational and Strategic Highlights

  • Shipments of latest generation ePMR and UltraSMR drives exceeded 1.7 million units, more than doubling sequentially.
  • Progress toward HAMR product introduction continues; qualification stage with hyperscalers begins next, with ramp planned for the first half of calendar 2027.
  • Next-generation ePMR (28 terabyte CMR, 36 terabyte UltraSMR) will complete qualification in the first half of calendar 2026.
  • The company reports strong adoption of its Platforms business, driven by AI-native companies and Storage as a Service providers.

Continue Reading

Unlock the full AI-powered summary with key highlights, financial performance, and analyst Q&A.

Upgrade to Professional
Operator: Good afternoon, and thank you for standing by. Welcome to Western Digital's Fourth Quarter Fiscal 2025 Conference Call. [Operator Instructions] As a reminder, this call is being recorded. Now, I will turn the call over to Mr. Ambrish Srivastava, Vice President, Investor Relations. You may begin. Ambrish Srivastava: Thank you, and good afternoon, everyone. Joining me today are Irving Tan, Western Digital's Chief Executive Officer; and Kris Sennesael, Western Digital's Chief Financial Officer. Before we begin, please note that today's discussion will contain forward-looking statements based on management's current assumptions and expectations, which are subject to various risks and uncertainties. These forward-looking statements include expectations for our product portfolio, our business plans and performance, ongoing market trends and our future financial results. We assume no obligation to update these statements. Please refer to our most recent annual report on Form 10-K and our other filings with the SEC for more information on the risks and uncertainties that could cause actual results to differ materially from expectations. In our prepared remarks, our comments will be related to non-GAAP results on a continuing operations basis, unless stated otherwise. Reconciliations between the non-GAAP and comparable GAAP financial measures are included in the press release and other materials that are being posted in the Investor Relations section of our website at invest

Continue Reading

Unlock the full earnings call transcript with speaker labels and formatted dialogue.

Upgrade to Professional