Western Digital beat Q2 FY26 estimates with 25% revenue growth and guides Q3 revenue up ~40% YoY.

Western Digital reported fiscal second-quarter revenue of $3.02 billion, up 25% year-over-year and ahead of the $2.94 billion consensus estimate. Non-GAAP EPS came in at $2.13, beating expectations of $1.93, driven by strong demand and margin expansion.

Key Highlights

• Revenue grew 25% YoY to $3.02 billion, while non-GAAP gross margin expanded significantly by 770 basis points to 46.1%, up from 38.4% in the prior-year quarter.
• The company delivered strong profitability with non-GAAP operating income rising 72% YoY to $1.02 billion, and generated $653 million in free cash flow for the quarter.
• For its fiscal third quarter, Western Digital projects revenue of approximately $3.2 billion at the midpoint, implying an acceleration to ~40% YoY growth, with non-GAAP EPS guided to $2.30.