Fri, May 2, 8:41 PM (16 days ago)
**Western Digital Corporation (WDC) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $2.29B (Q1 2025) vs. $1.75B (Q1 2024), a 31% increase. - **Gross Profit:** $912M (Q1 2025) vs. $519M (Q1 2024), a 76% increase. - **Operating Income:** $760M (Q1 2025) vs. $94M (Q1 2024), a 709% increase. - **Net Income:** $520M (Q1 2025) vs. $135M (Q1 2024), a 285% increase. **Profit Margins:** - **Gross Margin:** 39.8% (Q1 2025) vs. 29.6% (Q1 2024). - **Operating Margin:** 33.1% (Q1 2025) vs. 5.4% (Q1 2024). **Cash Flow:** - **Operating Cash Flow:** $945M (Q1 2025) vs. -$660M (Q1 2024). - **Investing Cash Flow:** $220M (Q1 2025) vs. $31M (Q1 2024). - **Financing Cash Flow:** $430M (Q1 2025) vs. $506M (Q1 2024). **Earnings Changes:** - **EPS (Basic):** $1.46 (Q1 2025) vs. $0.35 (Q1 2024). - **EPS (Diluted):** $1.42 (Q1 2025) vs. $0.34 (Q1 2024). **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by a 4% increase in units sold and a 23% increase in pricing. - **Gross Margin Improvement:** Due to higher product shipments, improved pricing, and favorable product mix. - **Operating Expenses:** R&D expenses remained consistent, while SG&A expenses decreased by 39%. - **Interest and Other Expense:** Increased due to an unrealized loss on retained interest in Sandisk. **Trends & Uncertainties:** - **Macroeconomic Conditions:** Tariffs and trade restrictions may impact costs and demand. - **Market Conditions:** Improved supply-demand dynamics in HDD, driving revenue growth. - **Future Operations Impact:** Continued focus on digital transformation and AI data-cycle. **Key Developments:** - **Separation of Business Units:** Completed on February 21, 2025, creating two independent public companies. - **Tax Resolution:** Settled IRS matters for years 2008 through 2015, with no remaining liability. - **Cash Dividend Program:** Authorized on April 29, 2025, with a $0.10 per share dividend declared.