Western Digital Q3 Earnings Surge, Dividend Announced

Western Digital reported strong fiscal third-quarter 2025 results, with non-GAAP earnings per share of $1.36, beating analyst expectations and marking a significant increase from the previous year. Revenue rose 31% year-over-year to $2.29 billion, driven by a 38% annual increase in the cloud segment, which now accounts for 87% of total revenue, despite a 5% sequential decline. Gross margins improved to nearly 40%, and operating income rose 36% sequentially. The company initiated a new quarterly cash dividend of $0.10 per share and completed the separation of its Flash business into the independent SanDisk Corporation. Shares surged on the earnings and dividend news, though the stock has underperformed the broader market this year. Looking forward, Western Digital remains optimistic, forecasting higher earnings and revenue next quarter and focusing on data growth and AI opportunities.