Western Digital reported robust Q2 fiscal 2025 results with revenue soaring 41% year-over-year to $4.29 billion, driven by a 76% increase in HDD revenue and 13% growth in Flash revenue. Net income reached $594 million compared to a loss of $287 million in the prior year, while gross margin expanded significantly to 35.4% from 16.2%. Cloud revenue more than doubled to $2.35 billion on strong enterprise drive demand.The company's HDD segment saw exabytes sold increase 93% year-over-year, primarily from higher shipments of high-capacity enterprise drives, while Flash segment benefited from a 14% improvement in average selling prices. Operating expenses decreased 5% to $664 million, including a $113 million gain from the sale of a majority stake in its Shanghai manufacturing facility.Management announced plans to separate its HDD and Flash businesses into two independent public companies, with the distribution expected around February 21, 2025. The company maintained strong liquidity with $2.29 billion in cash and expects higher but disciplined capital investments in fiscal 2025 compared to 2024, while remaining below 2023 levels.

Western Digital reported robust Q2 fiscal 2025 results with revenue soaring 41% year-over-year to $4.29 billion, driven by a 76% increase in HDD revenue and 13% growth in Flash revenue. Net income reached $594 million compared to a loss of $287 million in the prior year, while gross margin expanded significantly to 35.4% from 16.2%. Cloud revenue more than doubled to $2.35 billion on strong enterprise drive demand.The company's HDD segment saw exabytes sold increase 93% year-over-year, primarily from higher shipments of high-capacity enterprise drives, while Flash segment benefited from a 14% improvement in average selling prices. Operating expenses decreased 5% to $664 million, including a $113 million gain from the sale of a majority stake in its Shanghai manufacturing facility.Management announced plans to separate its HDD and Flash businesses into two independent public companies, with the distribution expected around February 21, 2025. The company maintained strong liquidity with $2.29 billion in cash and expects higher but disciplined capital investments in fiscal 2025 compared to 2024, while remaining below 2023 levels.