$WDC

WESTERN DIGITAL CORP

CIK:0000106040|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions	12 Months Ended
	Jul. 03, 2026	Jun. 27, 2025	Jun. 28, 2024
Income Statement [Abstract]
Revenue, net	$ 12,919	$ 9,520	$ 6,317
Cost of revenue	6,608	5,828	4,544
Gross profit	6,311	3,692	1,773
Operating expenses:
Research and development	1,161	994	950
Selling, general and administrative	551	568	726
Litigation matter	0	(198)	291
Business realignment charges (credits)	146	(6)	209
Total operating expenses	1,858	1,358	2,176
Operating income (loss)	4,453	2,334	(403)
Interest and other income (expense):
Interest income	51	45	33
Interest expense	(165)	(357)	(414)
Gain (loss) on retained interest in Sandisk	6,498	(772)	0
Costs in connection with debt-for-equity exchange	(545)	(100)	0
Costs in connection with convertible notes transactions	(108)	0	0
Costs in connection with equity-for-equity exchanges	(254)	0	0
Other income (expense), net	(25)	(20)	45
Total interest and other income (expense), net	5,452	(1,204)	(336)
Income (loss) before taxes	9,905	1,130	(739)
Income tax expense (benefit)	481	(513)	26
Net income (loss) from continuing operations	9,424	1,643	(765)
Net income (loss) from discontinued operations, net of taxes	0	246	(33)
Net income (loss) from continuing operations	$ 9,424	$ 1,889	$ (798)
Basic:
Continuing operations - basic (in dollars per share)	$ 26.92	$ 4.61	$ (2.51)
Discontinued operations - basic (in dollars per share)	0	0.70	(0.10)
Net income (loss) per share - basic (in dollars per share)	26.92	5.31	(2.61)
Diluted:
Continuing operations - diluted (in dollars per share)	24.28	4.45	(2.51)
Discontinued operations - diluted (in dollars per share)	0	0.67	(0.10)
Net income (loss) per share - diluted (in dollars per share)	$ 24.28	$ 5.12	$ (2.61)

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Jul. 03, 2026	Jun. 27, 2025	Jun. 28, 2024
Cash flows from operating activities
Net income	$ 9,424	$ 1,889	$ (798)
Adjustments to reconcile net income (loss) to net cash provided by operations:
Depreciation and amortization	375	451	568
Stock-based compensation	204	265	295
Deferred income taxes	129	(745)	(161)
Gain on disposal of assets	0	(2)	(87)
Non-cash asset impairment	35	2	158
Gain on business divestiture	0	(113)	0
Gain (loss) on retained interest in Sandisk	(6,498)	772	0
Costs in connection with debt-for-equity exchange	545	100	0
Costs in connection with convertible notes transactions	108	0	0
Costs in connection with equity-for-equity exchanges	254	0	0
Other non-cash operating activities, net	11	103	38
Changes in:
Accounts receivable, net	(541)	79	(568)
Inventories	(218)	(409)	356
Accounts payable	385	307	244
Accounts payable to related parties	0	(39)	21
Accrued expenses	(31)	(366)	197
Income taxes payable	(627)	348	(474)
Accrued compensation	144	(46)	259
Other assets and liabilities, net	230	(905)	(342)
Net cash provided by (used in) operating activities	3,929	1,691	(294)
Cash flows from investing activities
Purchases of property, plant and equipment	(418)	(412)	(487)
Proceeds from the sale of property, plant and equipment	0	5	195
Net proceeds from business divestiture	0	401	0
Notes receivable issuances to Flash Ventures	0	(266)	(243)
Notes receivable proceeds from Flash Ventures	0	239	482
Distribution from Flash Ventures	0	175	0
Strategic investments and other, net	(11)	8	26
Net cash provided by (used in) investing activities	(429)	150	(27)
Cash flows from financing activities
Issuance of stock under employee stock plans	64	77	80
Taxes paid on vested stock awards under employee stock plans	(376)	(113)	(88)
Purchase of capped calls	0	0	(155)
Proceeds from convertible preferred stock, net of issuance costs	0	0	(5)
Repurchases of common stock	(2,592)	(149)	0
Dividends paid to common shareholders	(174)	(44)	0
Dividends paid to preferred shareholders	(10)	0	0
Settlement of convertible notes transactions	(1,220)	0	0
Debt issuance and equity transaction costs	(6)	(73)	(36)
Repurchases of debt	0	0	(505)
Repayment of debt	(1,664)	(2,094)	(2,104)
Proceeds from debt	1,946	2,150	3,000
Cash transferred to Sandisk related to Separation	0	(1,366)	0
Net cash provided by (used in) financing activities	(4,032)	(1,612)	187
Effect of exchange rate changes on cash	(3)	6	(10)
Net increase (decrease) in cash and cash equivalents	(535)	235	(144)
Cash and cash equivalents, beginning of year	2,114	1,879	2,023
Cash and cash equivalents, end of year	1,579	2,114	1,879
Supplemental disclosure of cash flow information:
Cash paid for income taxes	734	789	920
Cash paid for interest	$ 169	$ 367	$ 396

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jul. 03, 2026	Jun. 27, 2025
Current assets:
Cash and cash equivalents	$ 1,579	$ 2,114
Accounts receivable, net	2,026	1,486
Inventories	1,511	1,291
Retained interest in Sandisk	0	354
Other current assets	518	611
Total current assets	5,634	5,856
Non-current assets:
Property, plant and equipment, net	2,476	2,343
Goodwill	4,321	4,319
Other non-current assets	1,430	1,484
Total assets	13,861	14,002
Current liabilities:
Accounts payable	1,774	1,266
Accrued expenses	690	719
Income taxes payable	173	800
Accrued compensation	551	407
Current portion of long-term debt	1,052	2,226
Total current liabilities	4,240	5,418
Non-current liabilities:
Long-term debt	0	2,485
Other liabilities	757	559
Total liabilities	4,997	8,462
Commitments and contingencies (Notes 8, 9 and 16)
Convertible preferred stock	0	229
Shareholders’ equity:
Common stock	4	3
Additional paid-in capital	961	4,621
Accumulated other comprehensive income	23	20
Retained earnings	9,998	762
Treasury stock	(2,122)	(95)
Total shareholders’ equity	8,864	5,311
Total liabilities, convertible preferred stock and shareholders’ equity	$ 13,861	$ 14,002