Western Digital reported better-than-expected results and announced a dividend increase. Revenue for the first quarter of fiscal 2027 was $4.38 billion, with EPS of $4.86, and the dividend was increased to $0.175 per share.
Against a backdrop of demand for cloud and AI storage, Western Digital's latest results showed solid revenue from continuing operations, with results exceeding prior guidance. Revenue came to $4.38 billion, while basic earnings per share (EPS) came to $4.86. The company announced a 17% increase in its dividend to $0.175 per share as part of efforts to enhance shareholder returns.
The second-quarter outlook points to revenue growth and improved non-GAAP profitability. Execution of the roadmap toward HAMR and cost management have been cited as the basis for the company's competitive advantage. Stable per-terabyte pricing and a shift in product mix toward high-capacity drives are expected to support margins during the transition period.
Analysts have presented a forecast of $31.9 billion in revenue and $16 billion in profit by 2029, with annual revenue expected to expand by approximately 35.2%. A fair value estimate indicating approximately 84% upside for the share price has also been cited, focusing attention on the direction of the company's future valuation.
Another view places greater emphasis on capital intensity, with more conservative assumptions of $30.2 billion in revenue and $14.6 billion in profit by 2029. The material encourages comparison and consideration of these conflicting views.