Western Digital Corporation stock research
FY2026 Q3
Western Digital (WDC) Gross Margin — Quarter Ended Apr 3, 2026
Revenue and gross profit both increased, while cost of revenue also rose but at a slower rate, leading to an improved gross margin. The current quarter's gross margin is higher than both the immediate prior quarter and the same quarter a year earlier.
Gross margin takeaway
Quarter ended Apr 3, 2026 · FY2026 Q3
Revenue and gross profit both increased, while cost of revenue also rose but at a slower rate, leading to an improved gross margin. The current quarter's gross margin is higher than both the immediate prior quarter and the same quarter a year earlier.
- The increase in gross profit outpaced the increase in revenue, and cost of revenue grew at a slower pace than revenue, which together lifted the gross margin.
- Compared with the immediately preceding quarter, gross margin improved as revenue and gross profit were higher while cost of revenue rose modestly. Relative to the same quarter one year earlier, all metrics were higher and gross margin strengthened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
50.2%
Gross profit
$1.7B
Revenue
$3.3B
Cost of revenue
$1.7B
Quarter-over-quarter change
+4.5 pts
Year-over-year change
+10.5 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 28, 2025 | $2.3B | $912.0M | $1.4B | 39.8% |
| Oct 3, 2025 | $2.8B | $1.2B | $1.6B | 43.5% |
| Jan 2, 2026 | $3.0B | $1.4B | $1.6B | 45.7% |
| Apr 3, 2026 | $3.3B | $1.7B | $1.7B | 50.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 2, 2026
+4.5 pts
Year-over-year change
Mar 28, 2025
+10.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The increase in gross profit outpaced the increase in revenue, and cost of revenue grew at a slower pace than revenue, which together lifted the gross margin.
Compared with the immediately preceding quarter, gross margin improved as revenue and gross profit were higher while cost of revenue rose modestly. Relative to the same quarter one year earlier, all metrics were higher and gross margin strengthened.
Monitor the relationship between revenue growth and cost of revenue growth, as the margin improvement depends on cost of revenue increasing at a slower rate than revenue.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Western Digital Corporation (WDC) | 50.2% |