WESTERN DIGITAL CORP recently released its 10-Q report, providing a detailed insight into the company's financial performance. The company, headquartered in San Jose, California, is a leading developer, manufacturer, and provider of data storage devices and solutions based on hard disk drive (HDD) technology, serving various end markets including cloud, client, and consumer.
In the 10-Q, the company reported a significant increase in net revenue for the three and six months ended January 2, 2026, compared to the same periods in the prior year. For the three months ended January 2, 2026, net revenue increased by 25% to $3.017 billion, driven by a 22% increase in exabytes sold and a 2% increase in average selling price per exabyte. Similarly, for the six months ended January 2, 2026, net revenue increased by 26% to $5.835 billion, driven by a 23% increase in exabytes sold and a 3% increase in average selling price per exabyte.
The company's gross profit also saw a significant increase, rising by $473 million for the three months ended January 2, 2026, and $894 million for the six months ended January 2, 2026, compared to the same periods in the prior year. This was primarily due to an increased volume of shipments, a lower cost structure on newer generation products, and improved pricing on higher capacity drives.
Moreover, WESTERN DIGITAL CORP reported changes in operating expenses, with research and development expenses increasing by $64 million for the three months ended January 2, 2026, and $96 million for the six months ended January 2, 2026. Selling, general and administrative expenses remained relatively flat for the three months ended January 2, 2026 and decreased by $70 million for the six months ended January 2, 2026.
The company also highlighted the impact of the Separation of Business Units, which was completed on February 21, 2025, resulting in the creation of two independent public companies, with Western Digital continuing its existing HDD business and Sandisk Corporation holding the Flash business. This Separation was aimed at better positioning the company as a pure-play HDD company to execute innovative technology and product development, capitalize on unique growth opportunities, and maximize long-term shareholder value.
Additionally, WESTERN DIGITAL CORP addressed the macroeconomic conditions and outlook, emphasizing the increasing long-term demand for data storage in the cloud, which has benefited its HDD business. The company also highlighted the impact of changes in the United States trade policy, including increasing tariffs on imports, and its active monitoring of developments and exploration of opportunities to mitigate potential future tariff and retaliatory actions.
Today the company's shares have moved -0.27% to a price of $221.51. For more information, read the company's full 10-Q submission here.
