Income Statement
Quarterly Data

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Western Digital Corp., consolidated income statement (quarterly data)

US$ in millions

3 months ended:	Dec 29, 2023	Sep 29, 2023	Jun 30, 2023	Mar 31, 2023	Dec 30, 2022	Sep 30, 2022	Jul 1, 2022	Apr 1, 2022	Dec 31, 2021	Oct 1, 2021	Jul 2, 2021	Apr 2, 2021	Jan 1, 2021	Oct 2, 2020	Jul 3, 2020	Apr 3, 2020	Jan 3, 2020	Oct 4, 2019	Jun 28, 2019	Mar 29, 2019	Dec 28, 2018	Sep 28, 2018	Jun 29, 2018	Mar 30, 2018	Dec 29, 2017	Sep 29, 2017
Revenue, net	3,032)	2,750)	2,672)	2,803)	3,107)	3,736)	4,528)	4,381)	4,833)	5,051)	4,920)	4,137)	3,943)	3,922)	4,287)	4,175)	4,234)	4,040)	3,634)	3,674)	4,233)	5,028)	5,117)	5,013)	5,336)	5,181)
Cost of revenue	(2,540)	(2,651)	(2,580)	(2,517)	(2,579)	(2,755)	(3,083)	(3,200)	(3,250)	(3,386)	(3,354)	(3,046)	(2,983)	(3,018)	(3,204)	(3,170)	(3,299)	(3,282)	(3,169)	(3,095)	(3,189)	(3,364)	(3,265)	(3,086)	(3,323)	(3,268)
Gross profit	492)	99)	92)	286)	528)	981)	1,445)	1,181)	1,583)	1,665)	1,566)	1,091)	960)	904)	1,083)	1,005)	935)	758)	465)	579)	1,044)	1,664)	1,852)	1,927)	2,013)	1,913)
Research and development	(444)	(431)	(458)	(476)	(523)	(552)	(598)	(572)	(575)	(578)	(598)	(555)	(535)	(555)	(546)	(563)	(578)	(574)	(523)	(544)	(539)	(576)	(577)	(602)	(629)	(592)
Selling, general and administrative	(198)	(207)	(231)	(242)	(250)	(247)	(266)	(281)	(279)	(291)	(297)	(287)	(265)	(256)	(269)	(281)	(298)	(305)	(299)	(353)	(309)	(356)	(352)	(376)	(381)	(364)
Employee termination, asset impairment, and other	(24)	(57)	(53)	(40)	(76)	(24)	(19)	(4)	(2)	(18)	4)	68)	(2)	(23)	(7)	(8)	(9)	(8)	(24)	(76)	(20)	(46)	(80)	(35)	(48)	(52)
Business separation costs	(36)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Operating expenses	(702)	(695)	(742)	(758)	(849)	(823)	(883)	(857)	(856)	(887)	(891)	(774)	(802)	(834)	(822)	(852)	(885)	(887)	(846)	(973)	(868)	(978)	(1,009)	(1,013)	(1,058)	(1,008)
Operating income (loss)	(210)	(596)	(650)	(472)	(321)	158)	562)	324)	727)	778)	675)	317)	158)	70)	261)	153)	50)	(129)	(381)	(394)	176)	686)	843)	914)	955)	905)
Interest income	12)	8)	9)	10)	3)	2)	2)	1)	1)	2)	1)	2)	2)	2)	2)	6)	8)	12)	14)	13)	15)	15)	14)	16)	14)	16)
Interest expense	(108)	(98)	(89)	(80)	(73)	(70)	(75)	(75)	(76)	(78)	(80)	(81)	(81)	(84)	(87)	(99)	(105)	(122)	(117)	(118)	(118)	(116)	(114)	(160)	(197)	(205)
Other income (expense), net	47)	4)	—)	13)	6)	(6)	22)	12)	(6)	2)	—)	11)	6)	9)	9)	(14)	7)	2)	10)	22)	8)	(2)	(14)	(898)	2)	(6)
Interest and other income (expense), net	(49)	(86)	(80)	(57)	(64)	(74)	(51)	(62)	(81)	(74)	(79)	(68)	(73)	(73)	(76)	(107)	(90)	(108)	(93)	(83)	(95)	(103)	(114)	(1,042)	(181)	(195)
Income (loss) before taxes	(259)	(682)	(730)	(529)	(385)	84)	511)	262)	646)	704)	596)	249)	85)	(3)	185)	46)	(40)	(237)	(474)	(477)	81)	583)	729)	(128)	774)	710)
Income tax (expense) benefit	(28)	(3)	15)	(43)	(61)	(57)	(210)	(237)	(82)	(94)	26)	(52)	(23)	(57)	(37)	(29)	(99)	(39)	277)	(104)	(568)	(72)	27)	189)	(1,597)	(29)
Net income (loss)	(287)	(685)	(715)	(572)	(446)	27)	301)	25)	564)	610)	622)	197)	62)	(60)	148)	17)	(139)	(276)	(197)	(581)	(487)	511)	756)	61)	(823)	681)
Cumulative dividends allocated to preferred shareholders	(14)	(15)	(15)	(9)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Net income (loss) attributable to common shareholders	(301)	(700)	(730)	(581)	(446)	27)	301)	25)	564)	610)	622)	197)	62)	(60)	148)	17)	(139)	(276)	(197)	(581)	(487)	511)	756)	61)	(823)	681)

The financial performance of Western Digital Corp. from September 2017 through December 2023 is characterized by significant cyclicality and volatility in both top-line revenue and bottom-line profitability. A pattern of expansion and contraction is evident, with the company experiencing severe margin compression in the most recent periods.

Revenue Trends: Revenue exhibited a cyclical trajectory, beginning at approximately 5.18 billion USD in September 2017. A notable contraction occurred in 2019, with values dipping to a low of 3.63 billion USD in June 2019. A recovery followed, peaking at 5.05 billion USD in October 2021. However, a steep downward trend emerged throughout 2022 and 2023, reaching a nadir of 2.67 billion USD in June 2023 before a modest recovery to 3.03 billion USD by December 2023.
Gross Profitability and Margin Analysis: Gross profit has fluctuated in tight correlation with revenue but with higher volatility. In late 2017, gross profit margins were robust, exceeding 36%. During the 2019 downturn, gross profit fell sharply to 465 million USD. While profitability recovered in 2021, reaching 1.66 billion USD in October 2021, it collapsed in 2023. In June 2023, gross profit plummeted to 92 million USD, representing a severe erosion of the cost-of-revenue efficiency.
Operating Expense Management: Operating expenses have remained relatively stable compared to the volatility of revenue. Research and development expenses generally fluctuated between 431 million USD and 629 million USD, while selling, general, and administrative expenses trended gradually downward from a high of 381 million USD in December 2017 to 198 million USD in December 2023. This stability in fixed costs created significant operating leverage, which amplified losses during periods of revenue decline.
Operating and Net Income Performance: Operating income reflects extreme swings, shifting from gains of 955 million USD in December 2017 to losses of 650 million USD in June 2023. Net income attributable to common shareholders shows similar volatility, with substantial losses appearing in December 2017, 2019, and throughout most of 2023. The most severe period of losses occurred between March 2023 and September 2023, where net losses exceeded 500 million USD per quarter, although the loss narrowed to 301 million USD by December 2023.
Non-Operating Items and Tax Impact: Interest expenses have trended generally lower over the long term, moving from 205 million USD in September 2017 to 108 million USD in December 2023. Tax benefits and expenses have been inconsistent, with a massive one-time tax expense of 1.59 billion USD in December 2017 significantly impacting net income for that period.

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Western Digital Corp. (NASDAQ:WDC)

Income StatementQuarterly Data

Income Statement
Quarterly Data