Sector: Technology|Industry: Computer Hardware|Market Cap: $22.15B|Employees: 51K
Western Digital is a leading developer, manufacturer, and provider of data storage devices and solutions based on both hard disk drive and NAND flash technologies. The company's broad portfolio of technology and products addresses multiple end markets, including cloud, client, and consumer. Western Digital has a strong market position and competitive advantages through its differentiated innovation engine, extensive customer relationships, and efficient manufacturing supply chains. The company has a global presence with operations in various regions.
Western Digital reported a 31% increase in net revenue YoY, reaching $2.294 billion, primarily driven by a 4% increase in units sold and a 23% increase in pricing. The Cloud segment saw a 38% revenue increase, reflecting a 14% increase in units sold and an 18% increase in average selling price per unit, stemming from data center expansions.
Gross profit increased by $393 million YoY, primarily due to higher product shipments and improved pricing. Gross margin increased by approximately 10 percentage points year over year, mainly due to improved pricing, with approximately 1 percentage point of the increase due to the unabsorbed manufacturing overhead costs incurred in the prior year period but not incurred in the current period.
The company recognized an unrealized loss of $606 million on its retained interest in Sandisk, based on the mark-to-market value as of March 28, 2025. This loss significantly impacted total interest and other expense, net, and consequently reduced net income from continuing operations.