Western Digital Corporation has released its financial results for the fiscal third quarter of 2025, showcasing a revenue of $2.29 billion, signifying a 5% decrease compared to the previous quarter. The downturn in revenue was attributed to declines across various segments: Cloud revenue dipped by 4%, Client revenue by 2%, and Consumer revenue experienced a substantial 13% drop.
Financial Performance Overview
For the third quarter, the company’s GAAP earnings per share (EPS) were reported at $2.11, while the Non-GAAP EPS was $1.36. Looking forward, fiscal fourth quarter 2025 revenue is projected to fall between $2.45 billion, with a variance of plus or minus $150 million. Non-GAAP EPS is anticipated to be around $1.45, with a margin of error of $0.20.
Dividend Announcement
The Board of Directors has approved a quarterly cash dividend program, declaring a cash dividend of $0.10 per share. This payment will be distributed to shareholders on June 18, 2025, with a record date of June 4, 2025.
Segment Performance Analysis
During this quarter, the breakdown of revenue by segment was as follows:
- Cloud: Contributed 87% of total revenue at $2.0 billion, down 4% sequentially but up 38% year-over-year. The decline was influenced by a 6% reduction in nearline bit shipments, although pricing per unit increased by 5%. Year-over-year growth was fueled by a 38% rise in revenue and a 32% increase in bit shipments.
- Client: Accounted for 6% of total revenue, equating to $137 million, down 2% both sequentially and year-over-year, primarily due to decreased unit shipments.
- Consumer: Represented 7% of total revenue at $150 million, reflecting a 13% sequential decline and a 4% year-over-year decrease, mainly due to lower unit shipments and pricing adjustments.
Cash Flow and Financial Position
Western Digital reported an operating cash inflow of $508 million by the end of the quarter, with total cash and cash equivalents amounting to $3.48 billion.
Operational Insights
Irving Tan, CEO of Western Digital, emphasized the company’s robust execution during the quarter, achieving revenues at the high end of guidance and maintaining a gross margin of over 40%. He highlighted the company’s strategic advantage in a challenging economic climate, focusing on the increasing demand for data storage solutions.
Separation Update
On February 21, 2025, Western Digital completed the separation of its Flash business unit, now operating as Sandisk Corporation. From this date onward, Sandisk’s financial results will not be included in Western Digital’s consolidated financial statements, and prior results will be categorized as discontinued operations.
Future Outlook
The company remains committed to enhancing shareholder value through its new dividend program, which is subject to market conditions and corporate considerations. Future dividends may be suspended or discontinued at the discretion of the board.
For further details on the financial results, stakeholders can access the earnings presentation and other relevant documents on the company’s investor webpage.