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DWD Q4FY26 Financial Results Western Digital August 5 , 2026
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© 2026 Western Digital Corporation or its affiliates. All rights reserved. Disclaimers Forward-Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws, including statements regarding expectations for: the company's business outlook and financial performance for the fiscal first quarter of 2027 and beyond, and demand and market conditions for our products and growth opportunities. These forward-looking statements are based on management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Key risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements include: adverse global or regional conditions, including new or additional tariffs or trade restrictions; the company’s dependence on a limited number of qualified suppliers; the impact of long-term agreements; volatility in demand for the company’s products; the impact of business and market conditions, including inflation, increases in interest rates and an economic recession; the impact of competitive products and pricing; the company’s development and introduction of products based on new technologies and expansion into new data storage markets; risks associated with the company's use of artificial intelligence; risks associated with cost saving initiatives, restructurings, acquisitions, divestitures, mergers, joint ventures and the company’s strategic relationships; difficulties or delays in manufacturing or other supply chain disruptions; hiring and retention of key employees; the company’s debt and other financial obligations; changes to the company’s relationships with key customers; compromise, damage or interruption from cybersecurity incidents or other data system security risks; actions by competitors; any decisions to reduce or discontinue paying cash dividends or repurchasing shares of the company’s common stock; the company’s ability to achieve its greenhouse gas emissions reduction and other sustainability goals; the impact of international conflicts; risks associated with compliance with changing legal and regulatory requirements and the outcome of legal proceedings; and other risks and uncertainties listed in the company’s filings with the Securities and Exchange Commission (the “SEC”), including the company’s Annual Report on Form 10-K filed with the SEC on August 14, 2025 to which your attention is directed. Further information regarding these risks and uncertainties will also be included in the company's Annual Report on Form 10-K for the year ended July 3, 2026, which the company expects to file with the SEC on or about August 14, 2026. You should not place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the company undertakes no obligation to update or revise these forward-looking statements to reflect new information or events, except as required by law. Non-GAAP Measures This presentation includes references to non-GAAP financial measures. Reconciliations of the differences between the non-GAAP measures provided in this presentation to the comparable GAAP financial measures are included in the appendix and in the Investor Relations section of our website. We have not fully reconciled our non-GAAP financial measures guidance to the most directly comparable GAAP measures because material items that impact these measures are not in our control and/or cannot be reasonably predicted. Accordingly, a full reconciliation of the non-GAAP financial measures guidance to the corresponding GAAP measures is not available without unreasonable effort. Discontinued Operations The financial and operating results of Sandisk Corporation (“Sandisk”) subsequent to February 21, 2025 (the “Separation Date”) are no longer consolidated into Western Digital Corporation’s (“WD”) financial and operating results, and the historical results and financial position of Sandisk for all periods prior to the Separation Date have been reflected as discontinued operations in the accompanying financial information. 22
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© 2026 Western Digital Corporation or its affiliates. All rights reserved. Q4FY26 Highlights 33 REVENUE $3.75B NON -GAAP GROSS MARGIN 54.4% NON -GAAP OPERATING MARGIN 44.2% NON -GAAP EPS $3.56 FREE CASH FLOW $1.4B • Revenue at high end of guidance • Expanded non-GAAP gross margin by 1,310 bps Y/Y • Generated free cash flow margin of 34% • Non-GAAP EPS up 109% Y/Y - above guidance range • Started shipping next gen ePMR (up to 40TB/drive) CASH FLOW FROM OPERATIONS $1.3B
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© 2026 Western Digital Corporation or its affiliates. All rights reserved. Growth Driven by Cloud and AI Workloads 44 Consumer Client Cloud 5% 6% 5% 6% 5%5% 5% 6% 5% 6% 90% 89% 89% 89% 89% $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 Q4FY25 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Consumer Client Cloud Revenue ($ Billions)
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© 2026 Western Digital Corporation or its affiliates. All rights reserved. Business Metrics 55 Revenue and Non-GAAP Gross Margin Exabytes 2,605 2,818 3,017 3,337 3,747 41.3% 43.9% 46.1% 50.5% 54.4% Q4FY25 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Revenue Non-GAAP Gross Margin 20 21 23 23 22 170 183 192 199 209 190 204 215 222 231 Q4FY25 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Non-Nearline Nearline See GAAP to Non-GAAP Reconciliations in the Appendix
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© 2026 Western Digital Corporation or its affiliates. All rights reserved. Non-GAAP Financial Results 6 Q4FY25 Q3FY26 Q4FY26 QoQ YoY Revenue $2,605 $3,337 $3,747 +12% +44% Gross Margin 41.3% 50.5% 54.4% +390 bps +1310 bps Operating Expenses $345 $397 $382 -4% +11% Operating Income $732 $1,287 $1,655 +29% +126% Operating Margin 28.1% 38.6% 44.2% +560 bps +1610 bps Diluted EPS $1.70 $2.72 $3.56 +31% +109% Cash Flow from Operations $746 $1,123 $1,389 +24% +86% Free Cash Flow $675 $978 $1,281 +31% +90% ($ Millions, except for EPS) See GAAP to Non-GAAP Reconciliations in the Appendix
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© 2026 Western Digital Corporation or its affiliates. All rights reserved. Non-GAAP Financial Results 7 FY25 FY26 YoY Revenue $9,520 $12,919 +36% Gross Margin 39.4% 49.1% +970 bps Operating Expenses $1,423 $1,532 +8% Operating Income $2,326 $4,817 +107% Operating Margin 24.4% 37.3% +1290 bps Diluted EPS $5.02 $10.22 +104% Cash Flow from Operations $1,691 $3,929 +132% Free Cash Flow $1,432 $3,511 +145% ($ Millions, except for EPS) See GAAP to Non-GAAP Reconciliations in the Appendix
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© 2026 Western Digital Corporation or its affiliates. All rights reserved. 8 Non-GAAP Revenue $4.1B +/- $100M Gross Margin 55% - 56% Operating Expenses $390M - $400M Interest and Other Expense, net ~ $15M Tax Rate ~ 17% Diluted EPS $4.00 +/- $0.15 Diluted Weighted Average Shares ~ 388M Guidance as shown is as of August 5, 2026 We provide earnings guidance on a non-GAAP basis because certain information necessary to reconcile such guidance to GAAP is difficult to estimate or cannot be allocated or quantified with certainty and is dependent on future events outside of our control. Please refer to the section titled "Non-GAAP Guidance" under "Discussion Regarding the Use of Non-GAAP Financial Measures" in our press release dated August 5, 2026 for additional information regarding the non-GAAP measures, including quantification of known expected adjustment items. Q1FY27 Guidance
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Appendix
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© 2026 Western Digital Corporation or its affiliates. All rights reserved. GAAP to Non-GAAP Reconciliations Q4FY25 Q1FY26 Q2FY26 Q3FY26 Q4FY26 FY25 FY26 GAAP Gross Profit $1,067 $1,227 $1,380 $1,676 $2,028 $3,692 $6,311 Stock-based compensation expense 8 9 8 9 7 34 33 Other 2 1 3 (1) 2 23 5 Non-GAAP Gross Profit $1,077 $1,237 $1,391 $1,684 $2,037 $3,749 $6,349 GAAP Gross Margin(1) 41.0 % 43.5 % 45.7 % 50.2 % 54.1 % 38.8 % 48.9 % Non-GAAP Gross Margin(1) 41.3 % 43.9 % 46.1 % 50.5 % 54.4 % 39.4 % 49.1 % GAAP Operating Expenses $387 $435 $472 $486 $465 $1,358 $1,858 Stock-based compensation expense (37) (44) (45) (44) (38) (133) (171) Litigation matter — — — — — 198 — Business realignment (charges) credits (1) (3) (52) (40) (42) 6 (137) Other (4) (7) (3) (5) (3) (6) (18) Non-GAAP Operating Expenses $345 $381 $372 $397 $382 $1,423 $1,532 GAAP Operating Income $680 $792 $908 $1,190 $1,563 $2,334 $4,453 Gross profit adjustments 10 10 11 8 9 57 38 Operating expense adjustments 42 54 100 89 83 (65) 326 Non-GAAP Operating Income $732 $856 $1,019 $1,287 $1,655 $2,326 $4,817 GAAP Operating Margin(1) 26.1 % 28.1 % 30.1 % 35.7 % 41.7 % 24.5 % 34.5 % Non-GAAP Operating Margin(1) 28.1 % 30.4 % 33.8 % 38.6 % 44.2 % 24.4 % 37.3 % GAAP Interest and Other Income (Expense), Net $(333) $545 $1,054 $2,169 $1,684 $(1,204) $5,452 (Gain) loss on retained interest in Sandisk 166 (611) (1,103) (2,734) (2,050) 772 (6,498) Costs in connection with debt and equity transactions 100 — — 545 362 100 907 Other 15 22 4 (4) (6) 18 16 Non-GAAP Interest and Other Income (Expense), Net $(52) $(44) $(45) $(24) $(10) $(314) $(123) ($ Millions, unaudited) 10
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© 2026 Western Digital Corporation or its affiliates. All rights reserved. Q4FY25 Q3FY26 Q4FY26 FY25 FY26 GAAP Net Income from Continuing Operations $252 $3,205 $3,195 $1,643 $9,424 Amount allocated to preferred shareholders (9) (33) — (44) (126) GAAP Diluted Net Income from Continuing Operations Attributable to Common Shareholders $243 $3,172 $3,195 $1,599 $9,298 GAAP Net Income from Continuing Operations $252 $3,205 $3,195 $1,643 $9,424 Gross profit adjustments 10 8 9 57 38 Operating expense adjustments 42 89 83 (65) 326 Interest and other expense (income) adjustments 281 (2,193) (1,694) 890 (5,575) Income tax adjustments 32 (48) (211) (709) (270) Non-GAAP Net Income from Continuing Operations 617 1,061 1,382 1,816 3,943 Amount allocated to preferred shareholders (17) (13) — (48) (60) Non-GAAP Diluted Net Income from Continuing Operations Attributable to Common Shareholders $600 $1,048 $1,382 $1,768 $3,883 Diluted Weighted Average Shares GAAP 362 387 389 359 383 Benefit of shares related to capped call transactions(2) (9) (2) (1) (7) (3) Non-GAAP 353 385 388 352 380 Diluted Net Income from Continuing Operations per Common Share (EPS) GAAP $0.67 $8.20 $8.21 $4.45 $24.28 Non-GAAP $1.70 $2.72 $3.56 $5.02 $10.22 Cash Flows(3) Cash flows provided by operating activities $746 $1,123 $1,389 $1,691 $3,929 Purchases of property, plant and equipment, net (71) (145) (108) (407) (418) Activity related to Flash Ventures, net — — — 148 — Free Cash Flow $675 $978 $1,281 $1,432 $3,511 1. GAAP and non-GAAP gross margin, as well as GAAP and non-GAAP operating margin, are calculated by dividing GAAP and non-GAAP gross profit, as well as GAAP and non-GAAP operating income, respectively, by Revenue, net. 2. Beginning with the three months ended October 3, 2025, the company calculates non-GAAP diluted net income from continuing operations per common share based on non-GAAP diluted weighted average shares, which include the benefit of shares related to capped call transactions. Calculations of amounts presented for prior periods have been revised to conform. 3. Cash flows are presented on a consolidated basis and include the results of Sandisk through the Separation Date. ($ Millions, except per share amounts; unaudited) GAAP to Non-GAAP Reconciliations 11
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© 2026 Western Digital Corporation or its affiliates. All rights reserved. GAAP to Non-GAAP Reconciliations Footnotes This presentation contains certain financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”), referred to herein as “non-GAAP measures.” These non-GAAP measures are not alternatives for measures prepared in accordance with GAAP and may be different from similarly titled non-GAAP measures used by other companies. The company believes the presentation of these non-GAAP measures, when shown in conjunction with the corresponding GAAP measures, provides useful information to investors for measuring the company’s earnings performance and comparing it against prior periods. Specifically, the company believes these non-GAAP measures provide useful information to both management and investors as they exclude certain expenses, gains and losses that the company believes are not indicative of its core operating results or because they are consistent with the financial models and estimates published by many analysts who follow the company and its peers. As discussed further below, these non-GAAP measures exclude, as applicable, stock-based compensation expense; charges related to a litigation matter; business realignment (charges) credits; (gain) loss on retained interest in Sandisk; costs in connection with debt and equity transactions; income tax adjustments; and other adjustments. The company believes these measures, along with the related reconciliations to the GAAP measures, provide additional detail and comparability for assessing the company's results. These non-GAAP measures are some of the primary indicators management uses for assessing the company's performance and planning and forecasting future periods. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. As described above, the company excludes the following items from its non-GAAP measures: Stock-based compensation expense. Because of the variety of equity awards used by companies, the varying methodologies for determining stock-based compensation expense, the subjective assumptions involved in those determinations, and the volatility in valuations that can be driven by market conditions outside the company’s control, the company believes excluding stock-based compensation expense enhances the ability of management and investors to understand and assess the underlying performance of its business over time and compare it against the company’s peers, a majority of whom also exclude stock-based compensation expense from their non-GAAP results. Litigation matter. In previous periods, the company had recognized expenses related to a judgment in a patent litigation matter, which consistedof an award of damages, interest, estimated plaintiff legal costs and other charges. A portion of these expenses were reversed upon a subsequent settlement with the plaintiff. The company believes these charges and subsequent reversals do not reflect the company’s operating results and that they are not indicative of the underlying performance of its business. Business realignment (charges) credits. From time to time, in order to realign the company’s operations with anticipated business needs or to achieve cost synergies from the integration of acquisitions, the company may incur charges in connection with actions to terminate employees, impair assets or otherwise restructure its operations and may recognize credits related to charges previously incurred. These (charges) credits are inconsistent in amount and frequency, and the company believes they are not indicative of the underlying performance of its business. (Gain) loss on retained interest in Sandisk. The company retained an ownership interest in Sandisk at the time of the separation and has recognized (gains) losses on the mark-to-market adjustment of Sandisk shares. The company believes these adjustments do not reflect the company’s operating results and are not indicative of the underlying performance of its business. Costs in connection with debt and equity transactions. In connection with the company’s actions to monetize its retained interest in Sandisk and reduce its debt, it completed a number of transactions, including a debt-for-equity exchange, equity-for-equity exchanges, and the private settlement of a portion of our convertible note obligations. In connection with these transactions, the company recognized costs primarily related to a discount given to the counterparty of the transaction. The company believes these costs do not reflect the company’s operating results and are not indicative of the underlying performance of its business. Income tax adjustments. Income tax adjustments represent the difference between income taxes based on a forecasted annual GAAP tax rate and a forecasted annual non-GAAP tax rate, which have been adjusted to account for the tax effects of items excluded from non-GAAP pre-tax income as well as the tax effects of non-recurring and period-specific tax items. These adjustments are excluded because the company believes that they are not indicative of the underlying performance of its ongoing business. Other adjustments. From time to time, the company records costs, charges, and benefits that the company believes are not a part of the ongoing operation of its business. The resulting expense or benefit is inconsistent in amount and frequency. As described above, the company also presents the following non-GAAP financial measures: Non-GAAP diluted weighted average shares. Beginning with the three months ended October 3, 2025, the company calculates non-GAAP diluted net income from continuing operations per common share based on non-GAAP diluted weighted average shares and has also adjusted the prior year periods to conform to the new presentation. Management uses non-GAAP diluted weighted average shares to evaluate — in addition to the potential dilution due to the outstanding restricted stock units and the dilution from the 2028 convertible notes that are included in GAAP diluted weighted average shares — the benefit expected to be provided by existing capped call transactions entered into in connection with the 2028 convertible notes to offset the dilutive impact of the convertible notes, up to their capped limit. In periods where the quarterly average stock price per share exceeds the conversion price of the 2028 convertible notes, non-GAAP diluted weighted average shares includes the anti-dilutive impact of the company's capped call transactions, up to the then- applicable capped call price per share. Free cash flow. Free cash flow is defined as cash flows provided by operating activities less purchases of property, plant and equipment, net, and the pre-separation activity related to Flash Ventures, net. The company considers free cash flow generated in any period to be a key indicator of the underlying health of the business. 12