Western Digital Corporation (WDC)

Gross profit margin

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Gross profit	US$ in thousands	3,692,000	2,945,000	1,887,000	5,874,000	4,521,000
Revenue	US$ in thousands	9,520,000	13,003,000	12,318,000	18,793,000	16,922,000
Gross profit margin		38.78%	22.65%	15.32%	31.26%	26.72%

June 30, 2025 calculation

Gross profit margin = Gross profit ÷ Revenue
= $3,692,000K ÷ $9,520,000K
= 38.78%

The gross profit margin of Western Digital Corporation has demonstrated notable fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. Specifically, the margin increased from 26.72% in 2021 to a peak of 31.26% in 2022, indicating an improvement in the company's ability to control cost of goods sold relative to revenue during this period. However, this upward trend was subsequently reversed, with the gross profit margin declining sharply to 15.32% in 2023, suggesting a deterioration in gross profitability potentially due to increased costs, pricing pressures, or a combination of factors impacting margin sustainability.

Following this decline, the gross profit margin experienced a partial recovery, rising to 22.65% in 2024, which may reflect strategic adjustments or operational improvements. Despite this rebound, the margin did not return to the peak levels seen in 2022, remaining below its previous high. The most recent data indicates a substantial increase to 38.78% in 2025, representing a significant improvement in gross profitability and surpassing all prior recorded margins within the period examined.

Overall, the gross profit margin of Western Digital Corporation has exhibited volatility, with periods of improvement interspersed by sharp declines. The increase to 38.78% in 2025 suggests a potential turnaround or enhanced efficiency in managing costs relative to sales, whereas the prior declines highlight challenges faced during earlier years that impacted gross profitability.