WDC revenue +36% to $12.9B, net income +399% to $9.42B on AI-driven demand; $2.6B buyback

Filed August 14, 2026 · Period ending July 3, 2026 · Compared to 10-K Aug 14, 2025 · ~2 min read

Key Changes

• high

  Net income surged 399% to $9.42B (diluted EPS +374% to $24.28) while operating income rose 91% to $4.5B—the $7.3B divergence came from a $6.5B mark-to-market gain on retained Sandisk shares, fully monetized by year-end through equity-for-equity exchanges.

  MD&A: Sandisk mark-to-market gain verify on EDGAR →
• high

  Cloud end market now 89% of revenue (top 10 customers 73%, three customers each >10%); company warns hyperscale customers could lower AI infrastructure investment as generative AI evolves unpredictably.

  Risk Factors: Cloud concentration verify on EDGAR →
• high

  Long-term supply agreements with customers lock in pricing and volumes over multi-quarter/multi-year periods, preventing the company from capitalizing on favorable market conditions and exposing it to execution risk (manufacturing shortfalls, supply-chain disruptions) and customer nonperformance risk.

  Risk Factors: Long-term supply agreements verify on EDGAR →