# Western Digital (WDC) Forecast Calculator

Interactive five-year financial forecast and DCF for Western Digital. Adjust revenue growth, margins, capex, and WACC to update revenue, free cash flow, and enterprise value.

- Canonical: https://finamodel.com/companies/western-digital/forecast
- Industry: Technology
- Forecast start year: 2026

## Historical data

| Year | Revenue | Free cash flow | EBITDA | Net income |
|---:|---:|---:|---:|---:|
| 2021 | 16569000000 | 671000000 | 1899000000 | -754000000 |
| 2022 | 16736000000 | 177000000 | 1901000000 | -250000000 |
| 2023 | 16922000000 | 752000000 | 2432000000 | 821000000 |
| 2024 | 18793000000 | 758000000 | 3320000000 | 1546000000 |
| 2025 | 6255000000 | -1229000000 | 280000000 | -1684000000 |

## Frequently asked questions

### What is Western Digital's primary business focus after the SanDisk spin-off?

Following the 2025 spin-off of its Flash memory division, Western Digital operates as a pure-play hard disk drive (HDD) powerhouse. The company provides critical mass storage infrastructure for hyperscale cloud providers, enterprise servers, and consumer electronics, competing in a consolidated duopoly.

### What are the main revenue drivers for Western Digital's HDD business?

Western Digital's revenue is primarily driven by its Cloud segment, which accounts for approximately 88-90% of its total revenue. The company is positioned to capitalize on the AI-driven data center storage supercycle, with international sales also representing a significant portion of its total revenue.

### What is Western Digital's typical capital expenditure as a percentage of revenue?

For its pure-play HDD business, Western Digital typically incurs capital expenditure ranging from 4-7% of its revenue. A significant portion of this capex, roughly 60%, is growth-oriented, funding major programs like the transition to Heat-Assisted Magnetic Recording (HAMR) technology.

### How does Western Digital's asset-heavy business model impact its cost structure?

Western Digital's asset-heavy manufacturing business model results in immense operating leverage due to high fixed costs associated with fabrication facilities. While variable material costs also contribute, the substantial fixed asset base is a key characteristic of its cost structure.

### What is Western Digital's net working capital profile, and why is it positive?

Western Digital typically maintains a positive net working capital, representing 10-15% of its revenue. This positive working capital profile is essential for funding significant inventory builds, which are necessary to meet the demands of hyperscaler deployments.

### Where can I find a financial model for Western Digital's post-spin-off HDD business?

A comprehensive equity valuation and scenario planning Excel model for Western Digital's pure-play HDD business is available for download. This model provides forecasts through FY2030 and focuses on the company's ability to capitalize on the AI-driven data center storage supercycle.