Western Digital Corp. (NASDAQ: WDC) has reported its fiscal third quarter 2025 financial results, revealing a revenue of $2.29 billion, representing a 5% sequential decrease. Within this, cloud revenue decreased by 4%, client revenue decreased by 2%, and consumer revenue decreased by 13% compared to the previous quarter. The GAAP earnings per share (EPS) for the third quarter was $2.11, while non-GAAP EPS was $1.36.
In terms of year-over-year performance, the company's third quarter revenue increased by 31% compared to the same period in 2024. Gross margin for the quarter was reported at 39.8%, representing an increase of 10.2 percentage points compared to the third quarter of 2024.
Operating expenses for the quarter totaled $152 million, reflecting a significant decrease of 56% sequentially and 64% year-over-year. Operating income saw a substantial increase of 36% sequentially and an impressive 709% year-over-year, reaching $760 million.
The company's end market summary for the third quarter showed that cloud revenue represented 87% of total revenue, amounting to $2.0 billion, down 4% sequentially but up 38% year-over-year. Client revenue accounted for 6% of total revenue, amounting to $137 million, down 2% sequentially and year-over-year. Consumer revenue represented 7% of total revenue, amounting to $150 million, down 13% sequentially and 4% year-over-year.
Looking ahead, Western Digital anticipates its fiscal fourth quarter 2025 revenue to be in the range of $2.45 billion, with a non-GAAP EPS expected to be in the range of $1.45 +/* $0.20. The company also announced the adoption of a quarterly cash dividend program, declaring a cash dividend of $0.10 per share of the company’s common stock, payable on June 18, 2025 to shareholders of record as of June 4, 2025.
The investment community conference call to discuss these results and the company’s business outlook for the fiscal fourth quarter of 2025 has been scheduled to be broadcast live online today at 5:30 a.m. Pacific/8:30 a.m. Eastern.
The company's CEO, Irving Tan, noted the company's solid performance in achieving revenue at the high end of its guidance range and gross margin over 40%, emphasizing the exponential growth of data and the company's strategic positioning to meet customers’ mass storage needs.
For further details, the company’s earnings presentation is accessible online at investor.wdc.com. The market has reacted to these announcements by moving the company's shares 5.3% to a price of $42.78. For more information, read the company's full 8-K submission here.
