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Western Digital Corporation WDC reported third-quarter fiscal 2025 non-GAAP earnings of $1.36 per share, which surpassed the Zacks Consensus Estimate of $1.17. The company reported earnings of 63 cents per share in the prior-year quarter. Management anticipated fiscal third-quarter non-GAAP earnings per share to be between 90 cents per share and $1.20. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Revenues of $2.29 billion surged 31% year over year, beating the Zacks Consensus Estimate of $2.24 billion. The upside resulted from increasing demand momentum across Cloud end markets. On a sequential basis, revenues decreased 5%. For third-quarter fiscal 2025, the company expected non-GAAP revenues in the range of $3.75-$3.95 billion.
On Feb. 21, 2025, Western Digital completed the separation of its HDD and Flash businesses into two independent, publicly traded companies, each with a specific focus on its respective market. With a deep understanding of memory and storage technology, the new SanDisk is ready to meet market demands. It is well-equipped to take advantage of AI opportunities while maximizing the value of its products for both consumers and businesses.
Despite geopolitical tensions and changing trade dynamics, data continues to grow rapidly. For large-scale storage, HDDs remain the most reliable and cost-effective option. With a broad range of storage solutions, WDC is well-placed to support growing data needs.
Western Digital Corporation Price, Consensus and EPS Surprise
Western Digital Corporation price-consensus-eps-surprise-chart | Western Digital Corporation Quote
In response to the results, shares of WDC jumped 6.35% in the pre-market trading on April 30. In the past year, shares have declined 40.6% compared with the Zacks Computer-Storage Devices industry’s fall of 39.5%.
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Quarter in Detail
Revenues from the Cloud end market (87% of total revenues) climbed 38% year over year to $2 billion, fueled by strong year-over-year growth in both revenues (+38%) and bit shipments (+32%), highlighting the demand for scalable and cost-effective storage. The cloud segment fell 4% sequentially, primarily due to a 6% drop in nearline bit shipments, though this was partly offset by a 5% increase in Cloud pricing per unit.
Revenues from the Client end market (6%) were down 2% year over year and sequentially to $137 million due to lower unit shipments.
Revenues from the Consumer end market (7%) were down 4% year over year to $150 million and decreased 13% on a sequential basis due to lower unit shipments and pricing erosion.