Western Digital Leads Wave of Earnings Beats With Revenue Up 55% and Blowout Q2 Guidance

Western Digital delivered a commanding first quarter of fiscal 2027, posting revenue of $4.38 billion against estimates of $4.13 billion, a 55% year-over-year increase. Adjusted EPS came in at $4.64, beating the $4.07 consensus by $0.57 and rising 161% from the prior year. Adjusted gross margin expanded 1,420 basis points to 58.1%, while adjusted operating margin surged 1,870 basis points to 49.1%, generating $2.15 billion in adjusted operating income. The company attributed results to robust customer demand and disciplined execution. Western Digital also repurchased $1.0 billion in common stock and raised its quarterly cash dividend 17% to $0.175 per share.

The guidance for Q2 FY27 was the standout, with revenue projected at $5.0 billion to $5.2 billion versus the $4.57 billion estimate, and adjusted EPS of $5.60 to $6.00 against a $4.78 consensus. Adjusted gross margin is guided to 60% to 61%, with operating expenses of $400 million to $410 million. Operating cash flow for Q1 reached $1.60 billion and free cash flow was $1.38 billion, the latter slightly below the $1.54 billion estimate.

Bloom Energy also posted a dramatic quarter, with Q3 revenue of $1.24 billion surging 138% year-over-year and beating the $1.05 billion estimate. Adjusted EPS of $0.94 topped the $0.68 consensus, and adjusted operating income of $285.7 million far exceeded the $214 million estimate. The company raised its full-year FY26 revenue outlook to $4.40 billion to $4.60 billion, well above the prior $4.1 billion estimate, and lifted adjusted EPS guidance to $3.10 to $3.40 from the $2.73 consensus. Bloom also disclosed it had been added to the S&P 500.

Newmont reported Q3 FY26 revenue of $6.36 billion, up 15% year-over-year and above the $6.31 billion estimate, with adjusted EPS of $2.20 beating the $2.11 consensus. The gold miner produced 1.30 million attributable ounces at a realized price of $4,317 per ounce and an all-in sustaining cost of $1,454 per ounce. Free cash flow of $1.91 billion missed the $3.36 billion estimate, and adjusted net income of $2.31 billion fell short of the $2.47 billion forecast. Newmont returned $1.9 billion to shareholders since its last call, including $1.6 billion in buybacks, with $2.8 billion of repurchase authorization remaining. The company flagged a planned $1.95 billion payment to Barrick expected in Q4, before which its net cash position stands at $3.2 billion. A full-funds investment decision on the Red Chris Block Cave is expected in early 2027, and the Tanami Expansion 2 is now targeted for commercial production in the first half of 2027.

Among other reporters, RingCentral posted Q3 revenue of $676 million, beating the $667 million estimate, with adjusted EPS of $1.33 topping $1.28. The company raised its full-year revenue guidance to $2.65 billion to $2.66 billion and announced the launch of plugins for ChatGPT and Claude, including MCP connectors. TTM Technologies reported Q3 revenue of $1.20 billion, up 60% year-over-year, with adjusted EPS of $1.46 versus a $1.25 estimate and a book-to-bill ratio of 2.13. The company issued FY27 guidance of $6.5 billion to $6.75 billion in revenue. MaxLinear posted Q3 revenue of $218.1 million, up 72%, with infrastructure revenue growing 210%, and guided Q4 revenue to $240 million to $260 million against a $221 million estimate. Deckers missed Q2 revenue estimates at $1.48 billion versus $1.51 billion expected but beat on EPS at $2.31 due in part to a $46 million tariff refund benefit, while its full-year revenue outlook of $5.70 billion to $5.73 billion came in below the $5.88 billion consensus.