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Western Digital Q1 2027 Earnings Call
Western Digital reports 69% revenue growth for Q2 as AI data boom lifts EPS 161% to $4.64.
In brief
Western Digital reports 69% revenue growth for Q2 as AI data boom lifts EPS 161% to $4.64. Western Digital guided to 69% revenue growth in Q2 2027 with EPS rising 161% to $4.64 amid AI data demand. Originally reported by BigGo Finance.
Q1 2027 Results
Western Digital delivered a blowout fiscal 2027 first quarter with revenue up 55% year-over-year to $4.4 billion.
EPS and Margin Boost
EPS jumped 161% to $4.64, gross margin expanded 1,420 basis points to 58.1%.
Q2 Revenue Guidance
Western Digital guided second-quarter revenue to $5.1 billion at the midpoint, a 69% year-over-year increase.
EPS Guidance
![[Western Digital Q1 2027 Earnings Call] Western Digital Guides to 69% Revenue Growth in Q2 as AI Data Boom Lifts EPS 161% to $4.64](https://img.biggo.com/TPujDN3jdZyXH5aD6KGkGHnqlQ_Ff2yLwQ4kXdxHZ50/fit/1720/0/sm/0/aHR0cHM6Ly9pbWcuYmdvLm9uZS9uZXdzLWltYWdlL2Vhcm5pbmdzX2NhcmQvMjAyNi0xMC9VU19XRENfMjAyNi0xMC0yMl8xNzkyNzA5OTQyLndlYnA.webp)
EPS of $5.80 ± $0.20 with gross margin of 60%-61%.
AI-Driven Demand
Management attributed strength to durable cloud and AI-driven demand, favorable pricing environment, and fast-ramping ePMR platform.
Pricing Power
Average price per terabyte rose 28% year-over-year, accelerating from high-teens growth in the prior quarter.
Cloud Revenue Surge
Cloud revenue, representing 88% of total revenue, rose 54% to $3.9 billion.
Client Revenue Growth
Client revenue more than doubled to $320 million, a 119% year-over-year increase.
Consumer Revenue Growth
Consumer revenue rose 19% to $193 million.
ePMR Platform
Western Digital's ePMR platform delivers up to 40 terabytes and is ramping faster than any prior transition.
HAMR Timeline
First-generation HAMR product completes qualifications with two hyperscale customers in Q1 2027, with volume shipments starting in H1 2027.
Demand Visibility
CEO Irving Tan said visibility extends to 2030-2031 for top seven customers with increasing demand signals.
Cost Per Terabyte
Cost per terabyte declined only 4%-5% in the September quarter, with management expecting less than 10% year-over-year decline.
Dividend Increase
The board raised the quarterly dividend 17% to $0.175 per share, payable December 17, 2026.
Here's the gist
Western Digital guided to 69% revenue growth in Q2 2027 with EPS rising 161% to $4.64 amid AI data demand.
