Western Digital filed its 10-Q with the SEC, and its figures are now in our data. Revenue over the twelve months to Q1 2027 was $14.48 billion, which rose 43.0% on the year before. That growth rate was up 7.3 percentage points on the rate a quarter earlier.

Profitability

The trailing gross margin was 52.6%. The trailing operating margin was 39.4%, up 11.8 percentage points from a year earlier. The trailing net margin was 69.2%. Net income over the twelve months was $10.02 billion, which rose 288.7% on the year before.

Cash flow

Operating cash flow over the twelve months was $4.86 billion, up 108.7% on the year before. Capital spending was $572.0 million, or 3.9% of revenue. Free cash flow, operating cash flow less capital spending, was $4.29 billion, up 121.1% on the year before. Free cash flow was 29.6% of revenue (the free-cash-flow margin), up 10.5 percentage points from a year earlier.

Share count

The average diluted share count rose 5.8% over the year.

Against its own history

Today’s free-cash-flow margin of 29.6% is higher than 100% of the company’s own past quarterly readings, which have ranged from −132.1% to 27.2%. Today’s operating margin of 39.4% is higher than 100% of the company’s own past quarterly readings, which have ranged from −67.8% to 34.5%. Today’s twelve-month revenue growth rate of 43.0% is higher than 86% of the company’s own past quarterly readings, which have ranged from −93.5% to 867.4%.

Guidance

The company gave its fiscal second quarter of 2027 guidance for Revenue (year-over-year growth): 66% to 72%. The company gave its fiscal second quarter of 2027 guidance for Gross margin (adjusted): 60% to 61%. The company gave its fiscal second quarter of 2027 guidance for Operating expenses (adjusted): $400.0 million to $410.0 million. The company gave its fiscal second quarter of 2027 guidance for Interest and other expense, net (adjusted): $15.0 million.

What it means for value

In our model, growth 5 percentage points lower would lower the value by 23.7%, and 5 percentage points higher would raise it by 30.3%. A free-cash-flow margin 1 percentage point lower would lower it by 3.3%.

What to watch

The next filing will show whether the recent expansion in operating and net margins continues or stabilizes. It will also reveal if the high level of free cash flow generation relative to revenue persists. Finally, the report will provide updated details on the trajectory of diluted share count changes.