Western Digital Corporation (WDC)
Pretax margin
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 1,790,000 | 1,545,000 | 1,649,000 | 649,000 | -661,000 | -1,493,000 | -2,200,000 | -2,326,000 | -1,560,000 | -319,000 | 472,000 | 1,503,000 | 2,123,000 | 2,208,000 | 2,195,000 | 1,634,000 | 927,000 | 516,000 | 313,000 | 188,000 |
| Revenue (ttm) | US$ in thousands | 13,279,000 | 14,438,000 | 15,601,000 | 14,348,000 | 13,003,000 | 11,911,000 | 11,257,000 | 11,332,000 | 12,318,000 | 14,174,000 | 15,752,000 | 17,478,000 | 18,793,000 | 19,185,000 | 18,941,000 | 18,051,000 | 16,922,000 | 16,289,000 | 16,327,000 | 16,618,000 |
| Pretax margin | 13.48% | 10.70% | 10.57% | 4.52% | -5.08% | -12.53% | -19.54% | -20.53% | -12.66% | -2.25% | 3.00% | 8.60% | 11.30% | 11.51% | 11.59% | 9.05% | 5.48% | 3.17% | 1.92% | 1.13% |
June 30, 2025 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,790,000K ÷ $13,279,000K
= 13.48%
The pretax margin of Western Digital Corporation has exhibited significant variability over the specified periods. From September 30, 2020, through December 31, 2021, the pretax margin demonstrated a consistent upward trend, rising from 1.13% to a peak of 11.59%. This pattern suggests that the company was improving its operating efficiency or benefiting from favorable market conditions during this period, resulting in increased profitability before taxes.
However, beginning in early 2022, the pretax margin experienced a notable decline. By March 31, 2022, it had slightly decreased to 11.51%, and further reductions continued into the second half of 2022, reaching 8.60% by September 30, 2022, and dropping sharply to 3.00% by December 31, 2022. This decline indicates potential challenges affecting the company's profitability, such as increased costs, competitive pressures, or shifts in market dynamics.
The trend worsened in 2023, with the pretax margin turning negative for four consecutive quarters. It registered at -2.25% in March 2023 and declined further to -12.66% in June 2023 and -20.53% in September 2023. The negative margins suggest that the company was incurring losses before taxes during this period, likely reflecting operational struggles, product pricing pressures, or significant external or internal disruptions.
By December 2023, the negative trend persisted at -19.54%, although a partial recovery was observed in 2024. In the first quarter of 2024, the margin improved to -12.53%, and continued into the second quarter with a slight improvement to -5.08%. The third quarter of 2024 marked a positive turnaround, with the pretax margin returning to 4.52%, and the trend of recovery persisted in subsequent periods, reaching 10.57% in December 2024 and further rising to 10.70% in March 2025 and 13.48% in June 2025.
Overall, the pretax margin trajectory of Western Digital Corporation delineates a period of robust profit growth during 2020 and early 2021, followed by a significant decline into losses during 2023. The subsequent recovery indicates a potential stabilization or improvement in operational conditions, with margins moving back into positive territory by late 2024 and into 2025.
Peer comparison
Jun 30, 2025