Western Digital (XSWX:WDC) Operating Income: CHF2,926 Mil (TTM As of Mar. 2026)


XSWX:WDC Western Digital Corp XSWX:WDC
60 GF Score
Price CHF450.90
GF Value CHF20.85
! 2 Warning Signs
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What is Western Digital Operating Income?

Western Digital XSWX:WDC -1.48% 60 Operating Income is CHF2,926 Mil as of Mar. 2026. GuruFocus rates XSWX:WDC with a GF Score™ of 60/100 and a GF Value™ of CHF20.85. The stock has 2 warning signs investors should review.

Western Digital's Operating Income for the three months ended in Mar. 2026 was CHF972 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was CHF2,926 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Western Digital's Operating Income for the three months ended in Mar. 2026 was CHF972 Mil. Western Digital's Revenue for the three months ended in Mar. 2026 was CHF2,627 Mil. Therefore, Western Digital's Operating Margin % for the quarter that ended in Mar. 2026 was 37.01%.

Western Digital's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Western Digital's annualized ROC % for the quarter that ended in Mar. 2026 was 44.65%. Western Digital's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 455.57%.

Western Digital  (XSWX:WDC) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Western Digital's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=3889.264 * ( 1 - 4.58% )/( (8578.628 + 8043.057)/ 2 )
=3711.1357088/8310.8425
=44.65 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=12440.406 - 1985.078 - ( 3221.867 - max(0, 4124.754 - 6001.454+3221.867))
=8578.628

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=11844.929 - 2011.552 - ( 2548.49 - max(0, 3650.71 - 5441.03+2548.49))
=8043.057

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Western Digital's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=10697.832/( ( (1874.309 + max(428.732, 0)) + (1906.841 + max(486.551, 0)) )/ 2 )
=10697.832/( ( 2303.041 + 2393.392 )/ 2 )
=10697.832/2348.2165
=455.57 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1342.777 + 1075.018 + 361.792) - (1985.078 + 0 + 365.777)
=428.732

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1491.146 + 1068.366 + 333.028) - (2011.552 + 0 + 394.437)
=486.551

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Western Digital's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=972.316/2627.22
=37.01 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Western Digital Operating Income Related Terms

Western Digital Operating Income Historical Data

* Premium members only.

The historical data trend for Western Digital's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Western Digital Operating Income Chart

Western Digital Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,064.85 2,361.47 -361.96 86.70 1,732.12

Western Digital Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 493.93 553.79 632.90 767.42 972.32
XSWX:WDC
60GF Score
Western Digital Corp XSWX:WDC
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Western Digital Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF2,926 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of CHF2,926 Mil mean?
Western Digital (XSWX:WDC) has a Operating Income of CHF2,926 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Western Digital and its competitors.
Is Western Digital's Operating Income too high?
Western Digital's current Operating Income is CHF2,926 Mil. Overall, Western Digital has a GF Score™ of 60/100, reflecting its overall financial health beyond just this single metric.
How does Western Digital's Operating Income compare to STX and ANET?
Western Digital's Operating Income of CHF2,926 Mil can be compared against companies in the Hardware industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Hardware company?
A good Operating Income depends on the Hardware industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Western Digital and its competitors. Western Digital's current Operating Income is CHF2,926 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Western Digital stock overvalued right now?
Western Digital (XSWX:WDC) has a current Operating Income of CHF2,926 Mil. The stock's GF Value™ is CHF20.85, compared to a current price of CHF450.90 — trading 2062.6% above its estimated fair value. The current Operating Income is CHF2,926 Mil. Western Digital's overall GF Score™ is 60/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Western Digital (XSWX:WDC), the current Operating Income is CHF2,926 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Western Digital (XSWX:WDC) Overvalued in 2026?

Based on GuruFocus' analysis, Western Digital stock appears to be overvalued. The current stock price of CHF450.90 is trading 2062.6% above its estimated GF Value™ of CHF20.85.

Key valuation signals for XSWX:WDC:

  • Operating Income: CHF2,926 Mil
  • GF Value™: CHF20.85 vs. price of CHF450.90 (2062.6% above fair value)
  • GF Score™: 60/100 with 2 warning signs

No single metric tells the full story. See the XSWX:WDC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Western Digital Business Description

Address 5601 Great Oaks Parkway, San Jose, CA, USA, 95119
Western Digital is a leading vertically integrated supplier of hard disk drives. The HDD market is a practical duopoly, with Western Digital and Seagate being the two largest players. Western Digital designs and manufactures its HDDs, with much of the manufacturing and workforce located in Asia. The primary consumers of HDDs are data centers.
60GF Score

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Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF450.90
Price
CHF20.85
GF Value