Western Digital Corporation Common Stock Ex-distribution When-Issued

Strong FY26 performance with margin expansion + cash returns - Revenue $12.9B (+36% YoY); gross margin 49.1% (+970 bps); operating margin 37.3% (+1,290 bps). - EPS $10.22 (more than doubled); free cash flow (FCF) $3.5B (FCF margin ~27%). - Shareholder returns: $3.1B returned (notably $2.3M shares repurchased for ~$1.0B in Q4; plus dividend).

Q4 results beat guidance range; demand broad (exabytes up, pricing strong) - Q4 revenue $3.75B (+44% YoY); EPS $3.56 (+109% YoY); gross margin 54.4% (+1,310 bps YoY). - Deliveries: 231 exabytes (+22% YoY); nearline remained the main growth driver, supported by non-nearline. - Pricing: blended average price per TB rose “high teens” YoY (improved from high single digits prior quarter), reflecting their predictable pricing strategy and mix/capacity. - Cash/operations: operating cash flow $1.4B, FCF $1.3B in the quarter.

Outlook for Q1 FY27: strong sequential and YoY growth with continued high incremental margins - Forecast Q1 revenue $4.1B ± $100M (midpoint ~+45% YoY). - Gross margin 55%–56%; operating expenses $390M–$400M; tax rate ~17%. - Diluted EPS $4.00 ± $0.15 (based on non-GAAP 388M shares). - Management emphasized confidence that demand remains strong and that supply can grow exabytes without adding unit CapEx, aided by productivity/head/media automation.