Western Digital Corporation stock research
FY2025 Q3
Western Digital (WDC) Gross Margin — Quarter Ended Mar 28, 2025
Revenue decreased sequentially while gross profit increased slightly, leading to an improvement in gross margin. The year-ago period presented a negative gross margin contrast, while this quarter shows a positive margin.
Gross margin takeaway
Quarter ended Mar 28, 2025 · FY2025 Q3
Revenue decreased sequentially while gross profit increased slightly, leading to an improvement in gross margin. The year-ago period presented a negative gross margin contrast, while this quarter shows a positive margin.
- Cost of revenue declined sequentially more than the decline in revenue, which supported gross profit growth.
- Compared with the prior quarter, revenue was lower but gross profit was slightly higher, and gross margin improved. Compared with the same quarter one year earlier, revenue, gross profit, and gross margin all improved meaningfully.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.8%
Gross profit
$912.0M
Revenue
$2.3B
Cost of revenue
$1.4B
Quarter-over-quarter change
+2.1 pts
Year-over-year change
+72.8 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 29, 2024 | -$1.5B | $485.0M | $1.2B | -33.0% |
| Sep 27, 2024 | $2.2B | $806.0M | $1.4B | 36.4% |
| Dec 27, 2024 | $2.4B | $907.0M | $1.5B | 37.7% |
| Mar 28, 2025 | $2.3B | $912.0M | $1.4B | 39.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 27, 2024
+2.1 pts
Year-over-year change
Mar 29, 2024
+72.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Cost of revenue declined sequentially more than the decline in revenue, which supported gross profit growth.
Compared with the prior quarter, revenue was lower but gross profit was slightly higher, and gross margin improved. Compared with the same quarter one year earlier, revenue, gross profit, and gross margin all improved meaningfully.
Monitor the relationship between cost of revenue and revenue trends to see if the cost efficiency persists.