Western Digital revenue rose 55% year over year as cloud storage demand and improved pricing lifted fiscal first-quarter results. The company also projected another sharp revenue increase for the December quarter.

Western Digital revenue and margins accelerate

Revenue increased to $4.381 billion from $2.818 billion in the quarter ended October 2. It also rose 17% from the preceding quarter, according to Western Digital’s October 22 results.

GAAP operating income climbed 158% to $2.05 billion. The operating margin widened to 46.7% from 28.1% a year earlier.

GAAP diluted earnings increased 51% to $4.63 per share. Non-GAAP earnings rose 161% to $4.64 per share, reflecting the stronger revenue and margin mix.

Western Digital revenue outlook points higher

Management forecast fiscal second-quarter revenue of $5.1 billion, plus or minus $100 million. That range would represent year-over-year growth of 66% to 72%.

Western Digital expects a 60% to 61% non-GAAP gross margin. Its non-GAAP earnings outlook is $5.80 per share, plus or minus $0.20.

The company attributed recent momentum to exabyte growth and improved pricing. That backdrop connects storage demand to the wider AI infrastructure cycle described in Fusion Market News’ APAC chip supply-chain report.

Cash flow supports a higher dividend

Operating cash flow reached $1.60 billion, while free cash flow was $1.38 billion. The company defined free cash flow as operating cash flow minus net capital spending.

The board raised the quarterly dividend 17% to $0.175 per share. Payment is scheduled for December 17 to shareholders of record on December 4.

Storage infrastructure remains central to expanding AI workloads. Fusion Market News has also examined OpenAI’s Habitat storage system and the recent Nasdaq AI-sector selloff.

The release date was October 22, while the reported quarter ended October 2. Investors should separate that reporting date from the period covered by the results.

Sharron Kendi is a seasoned crypto market analyst and writer with over three years of experience decoding blockchain trends, price movements, and market dynamics. She holds a Bachelor’s Degree in Commerce (Finance) from Kenyatta University, blending a solid academic foundation with a sharp eye for technical analysis and a deep understanding of on-chain data. Her work delivers clear, data-driven insights that empower investors to navigate the fast-evolving digital asset space with confidence.