Can Western Digital's Strong FCF Sustain Buybacks and Dividends?

Western Digital ended fiscal 2026 with $3.51 billion in free cash flow and a net cash position of $500 million, returning $3.1 billion to shareholders through dividends and buybacks. The company expects Q1 fiscal 2027 revenue of $4.1 billion with non-GAAP EPS of $4.00. Competitors Seagate and SanDisk also demonstrated strong profitability and cash generation, with expanding margins and continued shareholder return programs.