Hollsteen

Western Digital

We are a leading developer, manufacturer, and provider of data storage devices and solutions based on hard disk drive (“HDD”) technology.

10-K, Aug 14, 2026

Business

How does Western Digital make money?

Flash is 51.9% of revenue.

What is left of every $100?

Of every $100 in revenue, $73 is net income.

Where do customers sit?

The region figures in the latest annual report overlap (regions and countries mixed) and do not add up to total revenue, so no chart is shown (nothing estimated).

In the company’s words ›

“HDDs are critical components in the worldwide data infrastructure market, powering the AI-driven digital economy.”

“HDDs provide reliable, cost-effective, high-capacity storage needs for a wide range of applications, ranging from cloud data centers, enterprise storage systems, edge computing, and smart video to client and consumer devices.”

“At Western Digital, we believe that data storage provides the strategic foundation for the AI-driven data economy.”

Item 1 · Business · 10-K · 0001628280-26-057139 · filed Aug 14, 2026

Where did the growth actually come from?

Flash drove 96% of Western Digital’s growth.

Thesis

Why do people invest?

1 reason in the company’s own words.

  • Revenue +36%
    “Net revenue increased by 36% in 2026 compared to 2025, primarily driven by a 25% increase in exabytes sold and an 8% increase in ASPs per exabyte, both of which were driven by strong demand across all of our end markets.”

    Item 7 · MD&A · 10-K · 0001628280-26-057139 · filed Aug 14, 2026

    Number check (revenue): stated 36% matches stored growth (+35.7%, ±10%)

    Revenue: $12.9B FY2026 · +35.7% vs FY2025 · KPIs

KPIs

How fast is revenue growing?

Revenue grew 36% to $12.9B.

Did the growth reach the shareholder?

Per share, revenue grew 71.5%.

How profitable is it?

34.5% operating margin, up from 24.5%.

How much cash does it make, and where does it go?

Keeps $27 of every $100 as free cash.

How strong is the balance sheet?

$1.6B cash vs $1.1B debt.

Dependencies

How much revenue hangs on one customer?

One Western Digital customer: $2.1B.

Customers, suppliers, stakes and mentions ›

Only what filings state. Anonymous customers stay anonymous.

Largest customers (Western Digital annual report)

Customer A16% not named · FY2026 · share of total revenue
Customer B15% not named · FY2026 · share of total revenue
“For 2026, three customers accounted for 16%, 15%, and 13%, respectively, of our net revenue.”

10-K · 0001628280-26-057139 · filed Aug 14, 2026 · basis: filing text, verified verbatim

Suppliers named by Western Digital

No supplier among the covered companies is named in the filings.

Western Digital holds stakes in

Sandisk0.7% 13G/A · reported

Others name Western Digital

1 competitor mention (e.g. Seagate) · 2 other mentions (e.g. Fortinet, Sandisk) · 1 partner mention (e.g. Sandisk) in covered companies’ filings. Mentions, not confirmed relationships.

Risks

What could go wrong?

4 of 30 risk factors, one per theme.

  • Customer concentration
    “There is significant revenue concentration in our Cloud end market and among our top customers.”

    Item 1A · Risk Factors · 10-K · 0001628280-26-057139 · filed Aug 14, 2026

  • Supply chain and manufacturing
    “We are dependent on a limited number of qualified suppliers who provide critical services, materials or components, and a disruption in our supply chain could negatively affect our business.”

    Item 1A · Risk Factors · 10-K · 0001628280-26-057139 · filed Aug 14, 2026

  • Competition
    “If we do not properly manage technology transitions and product development and introduction, our competitiveness and operating results may be negatively affected.”

    Item 1A · Risk Factors · 10-K · 0001628280-26-057139 · filed Aug 14, 2026

  • Security, defects and outages
    “We are subject to risks related to product defects, which could result in product recalls or epidemic failures and could subject us to warranty, litigation or indemnification claims that exceed our expectations or estimates.”

    Item 1A · Risk Factors · 10-K · 0001628280-26-057139 · filed Aug 14, 2026

Who’s invested

Who owns more than 5%?

Vanguard Capital Management LLC holds 7.49%.

  • Vanguard Capital Management LLC7.49%

    13G · as of Mar 31, 2026 · filed Apr 30, 2026

  • Fmr LLC7.2%

    13G/A · as of Jun 30, 2026 · filed Aug 6, 2026

  • Jpmorgan Chase & Co5.3%

    13G/A · as of Mar 31, 2025 · filed Apr 22, 2025

  • BlackRock Inc.8.5% (then)

    13G/A · filed Jan 25, 2024 · older than 18 months, current position unknown

13F holders and insider trades ›

Largest institutional holders, 13F, quarter ending Jun 30, 2026

  • BlackRock, Inc.10.2%

    33.0M shares · 13F filed Aug 7, 2026 · share of 13F-reported

  • Fmr LLC8.0%

    26.0M shares · 13F filed Aug 13, 2026 · share of 13F-reported

  • Vanguard Capital Management LLC6.9%

    22.5M shares · 13F filed Aug 13, 2026 · share of 13F-reported

  • Jpmorgan Chase & Co5.2%

    17.0M shares · 13F filed Aug 12, 2026 · share of 13F-reported

  • Capital World Investors5.1%

    16.6M shares · 13F filed Aug 12, 2026 · share of 13F-reported

1,846 13F filers report positions. 13F covers managers with over $100M in US equities; it is not a full shareholder list, and shares are not a percentage of shares outstanding.

Insiders, last 12 months (Form 4, open market)

0 purchases · 224 sales · $74.9M sold

Grants, gifts and tax withholding counted separately · window Oct 14, 2025 – Oct 14, 2026

All metrics

All metrics · 33 SEC metrics, FY2017–FY2026
Income statement 10
MetricFY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024FY2025FY2026
Cost of revenue
D&A
Discontinued operationsnot reportednot reportednot reportednot reportednot reportednot reported
Gross profit
Income taxes
Interest expense
Net income
Operating income
Revenue
SG&A
Balance sheet 9
MetricFY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024FY2025FY2026
Cash and equivalents
Current liabilities
Current portion of long-term debt
Equity
Equity incl. NCI
Long-term debt
Total assets
Total debt calc.
Total liabilities & equity
Cash flow 7
MetricFY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024FY2025FY2026
Buybacksnot reported
Capex
Dividends
Free cash flow calc.
Interest paid
Operating cash flow
Stock-based compensation
Per share & shares 4
MetricFY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024FY2025FY2026
EPS basic
EPS diluted
Wtd. shares basic
Wtd. shares diluted
Other 3
MetricFY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024FY2025FY2026
Other income (incl. interest)
Pretax income
Total liabilities