What it does
Western Digital states that it develops, manufactures and provides data storage devices and solutions based on hard disk drive (HDD) technology. Its portfolio is sold under the Western Digital and WD brands and serves Cloud, Client and Consumer end markets. The company says its HDDs are used in cloud data centers, enterprise storage systems, edge computing, smart video, desktop and notebook devices, and external consumer storage. It designs and manufactures substantially all recording heads and magnetic media used in its HDD products, while relying on external suppliers for remaining components and materials.
Source: Western Digital Corporation Form 10-K for fiscal 2026, Item 1 — sec.gov
How it makes money
The company sells HDD products across Cloud, Client and Consumer markets. Cloud sales include high-capacity enterprise HDDs for public and private cloud environments, enterprise customers, cloud data centers and smart video systems. Client sales include HDD solutions for OEM and channel customers across desktop and notebook devices. Consumer sales consist of external HDD storage products sold globally through retail and channel partners. Western Digital says it sells through hyperscale cloud service providers, neoclouds, computer manufacturers and OEMs, resellers, distributors and retailers, including under long-term agreements with certain customers.
Source: Western Digital Corporation Form 10-K for fiscal 2026, Item 1 — sec.gov
Customers and geography
Western Digital states that it sells worldwide to cloud service providers, neoclouds, computer manufacturers and OEMs, resellers, distributors and retailers. For 2026, three customers accounted for 16%, 15%, and 13%, respectively, of net revenue. The filing states that international sales represented 60% of net revenue in 2026; these include sales to foreign subsidiaries of U.S. companies but exclude sales to U.S. subsidiaries of foreign companies. Sales and marketing teams are located across the Americas, Asia Pacific, Europe and the Middle East. The company also uses long-term agreements with certain customers.
Source: Western Digital Corporation Form 10-K for fiscal 2026, Item 1 — sec.gov
Competition
The filing describes the data storage industry as competitive and states that Western Digital faces competition from manufacturers of storage products, storage systems and solutions, directly or indirectly. It names Seagate Technology Holdings plc and Toshiba Electronic Devices & Storage Corporation as HDD competitors. It also identifies NAND flash suppliers that provide and enable alternative storage technologies, as well as storage systems and solutions providers, without naming those companies. The company states that technology transitions, customer requirements and competitors’ product offerings or cost structures can affect its ability to compete.
Source: Western Digital Corporation Form 10-K for fiscal 2026, Item 1 and Item 1A — sec.gov
Key risks
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Loss of revenue from Cloud or other key customers could harm operating results; the filing cites significant revenue concentration in the Cloud end market and among top customers.
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Failure to manage technology transitions and product development and introduction could negatively affect competitiveness and operating results.
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Dependence on a limited number of qualified suppliers for critical services, materials or components could make supply-chain disruption harmful to the business.
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Long-term agreements expose the company to execution, financial and market risks.
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Product defects could lead to recalls or epidemic failures, warranty, litigation or indemnification claims.
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Adverse global or regional conditions, including trade restrictions and geopolitical tensions, could harm the business.
Source: Western Digital Corporation Form 10-K for fiscal 2026, Item 1A — sec.gov
People and operations
At the end of 2026, Western Digital employed approximately 40,000 people worldwide. Its workforce spans 24 countries, with approximately 88% in Asia Pacific, approximately 11% in the Americas, and less than 1% in Europe, the Middle East and Africa. The company’s vertically integrated assembly and test operations are concentrated in Thailand, Malaysia, the Philippines, China and California. It states that sales variability is largely dependent on buying patterns of large Cloud customers and their data-center buildouts, and that its business is also affected by industry cyclicality and macroeconomic factors.
Source: Western Digital Corporation Form 10-K for fiscal 2026, Item 1 — sec.gov