Western Digital's third quarter 2026 revenue surged 45% to $3.34 billion with gross margins exceeding 50%.

Western Digital reported fiscal third quarter 2026 revenue of $3.34 billion, up 45% year-over-year, with non-GAAP diluted EPS of $2.72. The results reflect strong growth across all end markets and significant margin expansion.

Key Highlights

• Revenue grew 45% year-over-year to $3.34 billion, with the company noting strong demand from all end markets, particularly for HDD storage related to AI workloads.
• Non-GAAP gross margin expanded by 1,040 basis points year-over-year to 50.5%, a key profitability milestone for the company.
• Management guided for fiscal fourth quarter revenue at a midpoint of $3.65 billion and non-GAAP EPS of approximately $3.25, suggesting continued momentum.
• The company generated strong free cash flow of $978 million during the quarter.