Q2 2025 Western Digital Corp Earnings Call Transcript
Key Points
- Western Digital Corp (WDC) reported a revenue of $4.3 billion for the second fiscal quarter, marking a 5% sequential increase and a 41% year-over-year growth.
- The HDD business achieved record gross margins and data center revenue hit an all-time high, driven by strong demand for nearline storage solutions.
- The company is in the final stages of separating its flash and HDD businesses, with key milestones like Form 10 filing and financing activities completed.
- Western Digital Corp (WDC) is strategically positioned to capitalize on long-term storage demand driven by the AI data cycle.
- The company has seen a 50% sequential growth in external SSD drive shipments, indicating strong consumer demand and successful product launches.
- The flash segment is facing temporary headwinds due to pricing pressure and oversupply, leading to a sequential decline in profitability.
- Gross margin for the fiscal second quarter was below guidance, impacted by pricing pressure in the flash segment.
- Western Digital Corp (WDC) anticipates a sequential revenue decline in the fiscal third quarter due to lower volume in both flash and HDD segments.
- The company is experiencing underutilization charges in the flash segment as it manages supply in response to ongoing inventory adjustments.
- There is a mid-cycle pause in the flash market, with expectations of continued pricing headwinds and lower bit shipments in the near term.
Good afternoon, and thank you for standing by. Welcome to Western Digital's Second Quarter Fiscal 2025 Conference Call. (Operator Instructions). As a reminder, this call is being recorded.
Now I will turn the call over to Mr. Peter Andrew. Vice President, Financial Planning and Analysis and Investor Relations. You may begin, sir.
Thank you, and good afternoon, everyone. Joining me today are David Goeckeler, Chief Executive Officer; and Wissam Jabre, Chief Financial Officer. Before we begin, let me remind everyone that today's discussion contains forward-looking statements based on management's current assumptions and expectations, and as such, does include risks and uncertainties.
These forward-looking statements include expectations for our product portfolio, our business plans and performance, the separation of our flash and HD businesses, ongoing market trends and our future financial results. We assume no obligation to update these
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