Western Digital Corporation (WDC) Earnings Review

The Read

Western Digital Corporation has reported, and this is the earnings review: what the quarter delivered against the Street's expectations, and what it means for the underlying business. Actual EPS landed at $3.56 against the $3.30 consensus — a surprise of 7.87% — on revenue of $3.75B versus a $3.70B estimate.

An earnings print only matters if it connects to the durable trend. The trailing-twelve-month revenue change is 13.36% while the TTM EPS change is 409.57%, so the rest of this review tests whether the quarter reinforced that direction across cash flow, margins, and the forward setup rather than simply clearing a bar.

Current compounder snapshot · WDC

Live supporting context; not part of the article's frozen 2026-08-14 evidence snapshot.

Save WDC Revenue growth consistency — vs the 20%+ bar over 10Y to favoritesShare on X: WDC Revenue growth consistency — vs the 20%+ bar over 10Y — opens x.com in a new tab

Western Digital CorporationWDC

3Y5Y10Y

RevenueEPSOp cash flowEBITDAFCF

Score

32/100

10Y CAGR

-0.1%

Median YoY

2.9%

YoY volatility

σ 28.2pp· choppy

Quarters ≥ 20%

12 of 40

Negative quarters

19

Valuation vs own 10Y history

P/S 15.6x · 10Y median 0.9x · 98th percentile · as of Aug 17, 2026

How this score is computed

• Quarters at or above 20%: 12 of 40 → 12 of 40 pts
• Steadiness (typical swing 28.2pp) → 4.9 of 25 pts
• Pace (median 2.9% YoY) → 0 of 20 pts
• Latest quarter (43.8% YoY) → 15 of 15 pts
• Score: 32 of 100

Annualized revenue (TTM) · by quarter, last 40

tgmcharts.com

Quarterly YoY revenue growth vs the 20% line

tgmcharts.com

P/S multiple vs its 10Y median

tgmcharts.com

WDC compounder charts →All consistent compounders →

The Quarter Reported

Start with the scorecard. Western Digital Corporation posted EPS of $3.56 against the $3.30 analysts modeled, an EPS surprise of 7.87%, while revenue of $3.75B compared with the $3.70B consensus for a revenue surprise of 1.27%.

The two surprises together say more than either alone, because a revenue-led result is more durable than one carried by a tax item or a share-count effect on EPS. This section treats the print as a data point about execution against expectations; whether it changed the thesis is decided by the trend lines and the forward outlook below.

Revenue And Earnings Direction

The TTM revenue change of 13.36% is most useful beside the net income change of 404.50%. When sales and earnings move apart, the review shifts from a growth story to a margin story. The EPS change of 409.57% then shows what the latest reporting cycle actually delivered per share after buybacks and mix.

Cash Flow Conversion

Cash conversion is the honesty check on the earnings line. The free-cash-flow change of 151.84% either confirms the EPS result or challenges it, and an earnings review is incomplete when it reports a beat or miss without asking whether cash generation moved the same way.

Margin Quality

Margin quality decides whether the revenue base is becoming more profitable. Operating margin is 34.89%, gross margin is 48.85%, and net margin is 72.95%. The margin chart belongs here because this is the section that explains why earnings can diverge from sales after a print.

Forward Outlook

The market trades on the next quarter, not the last one. Consensus models $3.76 in EPS and $4.13B in revenue for the coming quarter, with the next report due October 29, 2026. The forward setup is what turns a backward-looking print into a thesis: a result paired with a soft forward bar reads very differently from one paired with a rising one.

Comparing the just-reported quarter against that forward estimate is one way to test whether expectations are catching up to the business or running ahead of it. The TTM revenue change of 13.36% is the reference point; estimate uncertainty and reporting-basis differences remain limitations.

Valuation Reset

Valuation resets with every print. The market is paying 20.50x trailing earnings and the free-cash-flow yield is 1.68%. A quarter matters most when the valuation has not already priced every improvement in advance, so the multiple is the lens that decides how much the surprise should move the view.

Bull/Bear Case

The bull case is that revenue, earnings, cash flow, and margins moved together this quarter while the valuation at 20.50x remains explainable against the forward setup. The bear case is a split between reported earnings and cash generation, or a forward bar that asks too much of the next print. The case work sits before the final read so the review does not end as a recap.

Final Read

The earnings review is useful only when the print, the trend lines, cash conversion, margin quality, the forward outlook, and the valuation reset tell a coherent story. The source snapshot is dated August 14, 2026. This TGMCharts Research note uses reported fundamentals, linked source pages, and chart exhibits only — a structured read on the reported quarter, not a forecast or personalized investment advice.