AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-3: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 6/6 · 29/10/2026
Moat31
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 2/4 · Patents, integrated component manufacturing and realized product-cost improvements demonstrate meaningful capabilities. Explicit product interchangeability limits differentiation, while relative cost superiority and exclusion of competitors remain unproven. This supports a mixed structural position without establishing a durable moat.
durability · 1/4 · Lengthy qualifications and multi-year commitments provide some persistence. Historical excess capacity and approximately $155 million of unabsorbed manufacturing overhead in 2024, absent in 2025, demonstrate weak through-cycle protection. Current pricing gains do not yet establish lasting insulation from those pressures.
customer dependency · 1/4 · Purchase commitments and qualification requirements create limited friction, but largely interchangeable products provide direct evidence against strong customer lock-in. Historical customer concentration also leaves Western Digital exposed to a small buyer group. The evidence establishes supplier relationships more clearly than customer dependence on this particular supplier.
erosion resilience · 1/4 · Recent Cloud growth and cost improvements show recovery, but actual historical underutilization and current Consumer shipment losses following higher prices demonstrate fragile protection. Alternative storage competition adds prospective erosion risk; it is not treated as a demonstrated loss of the Cloud business.
Pricing power50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 3/4 · Average selling price per exabyte increased 9% in the April 2026 quarter and 5% over nine months. In the October 2026 quarter, Cloud pricing rose approximately 25%, attributed to an improved pricing environment. Consumer increases also reflect mix and caused demand softness, limiting generalization to durable pricing power.
retention · 2/4 · Substantial multi-period purchase commitments, extended commercial arrangements and growing Cloud shipments support continuing demand. This is indirect operating and contractual evidence rather than a measured retention rate. Product interchangeability and price-related Consumer volume losses prevent a stronger assessment of customer persistence.
margin resilience · 2/4 · GAAP gross margin rose from 38.8% in fiscal 2025 to 48.9% in fiscal 2026 and 57.8% in Q1 fiscal 2027. Cost, mix and pricing contributed. Historical unabsorbed overhead and excess-capacity impacts make the record mixed: strong expansion is demonstrated, but downside resilience remains weakly established.
contractual freedom · 1/4 · Customer price protection and incentives directly constrain effective pricing discretion; these deductions represented 9% of gross revenue in fiscal 2026. Long-term arrangements also commit delivery volumes. Actual pricing increases demonstrate some commercial flexibility, but unrestricted repricing, cancellation and cost-pass-through rights are not disclosed.
Predictability46
5 consecutive published annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 50.00
- Revenue growth volatility (pp)
- 27.89
- Positive FCF years (%)
- 60.00
- FCF margin volatility (pp)
- 13.47
- observedAnnualPeriods
- 5.00
Financial strength87
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, an original issuer-reported unadjusted EBIT reconciled to net income, income tax and signed net interest, or reported pretax profit plus reported gross interest expense. Reported EBIT is distinct from GAAP operating income and gross interest. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 100.00
- netDebtEbitGrade
- 100.00
- interestCoverageGrade
- 100.00
- currentRatioGrade
- 46.30
- Debt / FCF (x)
- 0.30
- Net debt / operating income (x)
- -0.12
- Interest coverage (x)
- 26.99
- Current ratio (x)
- 1.33
Capital allocation74
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income, an original issuer-reported unadjusted EBIT reconciled to net income, income tax and signed net interest, or EBIT calculated from reported pretax profit plus reported gross interest expense; the issuer-reported EBIT is distinct from GAAP operating income and gross interest; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. ROIC remains undefined for nonpositive invested capital; the explicit asset-return alternative does not change the ROIC chart. Missing financial inputs alone never trigger an alternative. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 24.03
- 3-year average dilution (%)
- -5.87
- 3-year average SBC / revenue (%)
- 2.21
- cashConversionGrade
- 0.00
Management69
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Fiscal 2026 operating cash flow of $3.929 billion, $418 million of net capital spending and completed debt redemptions support discipline; latest quarterly cash generation remains strong. Canceled capacity projects, transaction discounts and $1.00 billion of quarterly repurchases alongside rising outstanding shares make the allocation record mixed.
incentive alignment · 3/4 · Disclosed compensation links cash incentives to operating income and revenue, and equity to free cash flow, EPS and relative shareholder returns. Ownership guidelines, retention rules, transaction prohibitions and specified CEO holdings support alignment. Annual PSU targets, unvested RSUs counting toward ownership and incomplete performance cycles temper the assessment.
execution · 3/4 · Completed separation and debt redemptions, improved product costs, growing Cloud shipments and substantial cash generation demonstrate strong recent execution. Q1 fiscal 2027 GAAP operating income reached $2.046 billion. Management attribution is indirect because favorable demand and pricing contributed; Sandisk investment gains are not treated as operating execution.
governance · 3/4 · An independent chair, independence of all directors other than the CEO, regular independent executive sessions and an independent compensation committee establish substantive governance structures. Actual stockholder outreach and discussions demonstrate implementation. These disclosures support strong practices, while their effectiveness in preventing future capital-allocation or oversight failures remains unproven.
Evidence
We have a wide range of intellectual property (“IP”) assets, including patent portfolios containing approximately 4,700 active patents, covering groundbreaking data storage technologies, magnetic recording and other technology building blocks.
2026 10-K, filed August 14, 2026; Research and Technology · Filed 14/08/2026
We design and manufacture substantially all of the recording head and magnetic media in our HDD products, positioning us as an industry leader in innovations that drive higher areal density and superior performance.
2026 10-K; recording-head and magnetic-media manufacturing · Filed 14/08/2026
Our improvements in HDD capacity, which lower product costs over time, have been enabled largely through advancements in magnetic recording head and media technologies.
2026 10-K; capacity improvements and product costs · Filed 14/08/2026
In addition, because our products are designed to be largely interchangeable with competitors’ products, our demand forecasts may be impacted significantly by the strategic actions of our competitors.
2026 10-K; risk disclosure on product interchangeability · Filed 14/08/2026
We participate in a highly competitive industry that is subject to variations in average selling prices (“ASPs”) and demand, technological change and lengthy product qualifications, all of which can negatively impact our business.
2025 10-K, filed August 14, 2025; competition and product qualifications · Filed 14/08/2025
We also experience competition from other companies that produce alternative storage technologies such as flash memory, particularly in our legacy markets where we participate with our lower capacity, smaller form factor HDDs.
2025 10-K; alternative storage competition in legacy HDD markets · Filed 14/08/2025
The increase was largely due to an increased volume of shipments, a better cost structure on our newer generation products, a mix shift towards higher capacity drives and improved pricing.
2026 10-K; shipment, cost, mix and pricing drivers · Filed 14/08/2026
The increase also reflected charges for unabsorbed manufacturing overhead of approximately $155 million in 2024 which were not incurred in 2025.
2025 10-K; 2024 unabsorbed manufacturing overhead absent in 2025 · Filed 14/08/2025
The storage market has in the past experienced, and may in the future experience, periods of excess capacity leading to our factories running below the desired utilization levels, resulting in us taking underutilization charges, inventory write-downs and reductions in average selling prices (“ASPs”), all of which lead to negative impacts on our revenue and gross margins.
2026 10-K; historical excess capacity and prospective recurrence · Filed 14/08/2026
We have entered into long-term agreements with certain customers that commit us to deliver and our customers to purchase substantial volumes of products over multi-quarter or multi-year periods.
2026 10-K; long-term customer purchase and delivery commitments · Filed 14/08/2026
In response, customers are partnering with us earlier to support their future growth requirements and are extending the duration of their commercial arrangements, which improves our long-term visibility of demand.
2026 10-K; earlier customer engagement and extended commercial arrangements · Filed 14/08/2026
Cloud revenue, representing 88% of total revenue, increased by 54% for the three months ended October 2, 2026 from the comparable period in the prior year, driven by a more than 20% increase in exabytes shipped along with an approximately 25% increase in average selling price per exabyte.
Q1 FY2027 10-Q, filed October 23, 2026; Cloud revenue, exabytes and pricing for quarter ended October 2, 2026 · Filed 23/10/2026
Our top 10 customers accounted for 71% and 74%, respectively, of our net revenue for the three and nine months ended April 3, 2026, compared to 73% and 68%, respectively, of our net revenue for the three and nine months ended March 28, 2025.
April 2026 10-Q, filed May 1, 2026; top-ten customer revenue concentration · Filed 01/05/2026
The increase in average selling price per exabyte was due to an improved pricing environment.
Q1 FY2027 10-Q; Cloud average selling price driver · Filed 23/10/2026
Comparison of Three and Nine Months Ended April 3, 2026 to Three and Nine Months Ended March 28, 2025
Net Revenue
Net revenue increased by 45% for the three months ended April 3, 2026 from the comparable period in the prior year, driven by a 34% increase in exabytes sold and a 9% increase in average selling price per exabyte, both of which were driven by strong demand across all of our end markets.
April 2026 10-Q; quarterly revenue, exabyte volume and average selling price changes · Filed 01/05/2026
Net revenue increased by 33% for the nine months ended April 3, 2026 from the comparable period in the prior year, driven by a 26% increase in exabytes sold and a 5% increase in average selling price per exabyte.
April 2026 10-Q; nine-month revenue, exabyte volume and average selling price changes · Filed 01/05/2026
Consumer revenue, representing 5% of total revenue, increased by 19% for the three months ended October 2, 2026 from the comparable period in the prior year, which reflects an approximately 70% increase in average selling price per exabyte partially offset by an approximately 30% decrease in exabytes shipped.
Q1 FY2027 10-Q; Consumer revenue, pricing and exabyte shipment changes · Filed 23/10/2026
The decrease in exabytes shipped was driven by general softness in demand in these end markets as a result of the increased pricing levels.
Q1 FY2027 10-Q; demand softness attributed to increased pricing · Filed 23/10/2026
The increase in average selling price per exabyte was due to a shift in product mix to higher capacity drives and an improved pricing environment.
Q1 FY2027 10-Q; Consumer mix and pricing environment · Filed 23/10/2026
1
Western Digital Reports Fiscal First Quarter 2027 Financial Results
Q1FY27 Financial Highlights
($ in millions, except per share amounts)
GAAP
Q1FY27
Q4FY26
Q1FY26
Q/Q
Y/Y
Revenue
$4,381
$3,747
$2,818
+17%
+55%
Gross Margin
57.8%
54.1%
43.5%
+370 bps
+1430 bps
Operating Income
$2,046
$1,563
$792
+31%
+158%
Operating Margin
46.7%
41.7%
28.1%
+500 bps
+1860 bps
Diluted Net Income Attributable to Common Shareholders
$1,779
$3,195
$1,154
-44%
+54%
Diluted Net Income Per Common Share
Q1 FY2027 earnings release, filed October 22, 2026; GAAP quarterly financial highlights · Filed 22/10/2026
The following tables present reconciliations of our non-GAAP gross profit, non-GAAP operating income, non-GAAP EPS and adjusted free cash flow to the most directly comparable GAAP measures: (in millions, unaudited) Year Ended July 3, 2026 Year Ended June 27, 2025 Revenue $ 12,919 $ 9,520 Reconciliation of non-GAAP gross profit GAAP gross profit $ 6,311 $ 3,692 Stock-based compensation expense 33 34 Litigation matter — 19 Other 5 4 Non-GAAP gross profit $ 6,349 $ 3,749 GAAP gross margin(1) 48.9 % 38.8 % Non-GAAP gross margin(1) 49.1 % 39.4 % Reconciliation of non-GAAP operating income GAAP operating income $ 4,453 $ 2,334 Stock-based compensation expense 204 167 Litigation matter — (179) Business realignment charges (credits) 137 (6) Other 23 10 Non-GAAP operating income $ 4,817 $ 2,326 Western Digital 2026 Proxy Statement A-1 Proxy Summary Corporate Governance Matters Executive Officers Executive Compensation Equity Compensation Plan Information Stock Ownership Information Audit Committee Matters Additional Information Appendix A (in millions, unaudited) Year Ended July 3, 2026 Year Ended June 27, 2025 Reconciliation of non-GAAP EPS GAAP net income $ 9,424 Operating income adjustments 364 Gain on retained interest in Sandisk (6,498) Costs in connection with debt and equity transactions 907 Other 16 Income tax adjustments (270) Non-GAAP net income 3,943 Amount allocated to preferred shareholders (60) Non-GAAP diluted net income attributable to common shareholders $ 3,883 Diluted weighted average shares: GAAP 383 Benefit of shares related to capped call transactions (3) Non-GAAP 380 Diluted net income per common share GAAP $ 24.28 Non-GAAP $ 10.22 Reconciliation of adjusted free cash flow(2) Cash flows provided by operating activities $ 3,929 Purchases of property, plant and equipment, net (418) Free cash flow $ 3,511 Adjustments to free cash flow(2) 159 Adjusted free cash flow $ 3,670 (1)GAAP and non-GAAP gross margin are calculated by dividing GAAP and non-GAAP gross profit, respectively, by revenue.
2026 proxy, filed October 5, 2026; annual GAAP reconciliations, cash flows and gross-margin definition · Filed 05/10/2026
Consistent with standard industry practice, we have sales incentive and marketing programs that provide customers with price protection and other incentives or reimbursements that are recorded as a reduction to gross revenue.
2026 10-K; customer price protection and sales incentives · Filed 14/08/2026
For 2026, 2025 and 2024, these programs represented 9%, 10% and 11%, respectively, of gross revenue.
2026 10-K; incentive programs as percentage of gross revenue, fiscal 2026–2024 · Filed 14/08/2026
In February 2026, we executed a series of transactions pursuant to which we used 5.8 million shares of Sandisk common stock to further reduce our debt and fully redeem our previously outstanding 4.75% senior unsecured notes due 2026, 2.85% senior notes due 2029, 3.10% senior notes due 2032 and Term Loan A-3 through a tax-free exchange.
2026 10-K; completed February 2026 debt-for-equity exchange and debt redemptions · Filed 14/08/2026
In this regard, in 2024, the Company reassessed existing capacity development plans and made a decision to cancel certain projects, including projects to expand capacity in its Penang, Malaysia facility, resulting in the impairment of existing construction in progress, other assets and the recognition of a liability for certain contract termination costs.
2025 10-K; canceled 2024 capacity projects, impairment and termination costs · Filed 14/08/2025
As of October 2, 2026, there were 374 million shares issued and outstanding.
Q1 FY2027 10-Q; shares issued and outstanding at October 2, 2026 · Filed 23/10/2026
As of July 3, 2026, there were 364 million shares issued and 361 million shares outstanding, which was net of 3 million shares of treasury stock held at cost.
Q1 FY2027 10-Q; shares issued and outstanding at July 3, 2026 · Filed 23/10/2026
During the three months ended October 2, 2026, the Company repurchased 2.0 million shares under the Share Repurchase Program for a total cash cost of $1.00 billion.
Q1 FY2027 10-Q; actual quarterly share repurchases · Filed 23/10/2026
Property, plant and equipment, net
2,586
2,476
Goodwill
4,321
4,321
Other non-current assets
1,464
1,430
Total assets
$
14,239
$
13,861
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
1,855
$
1,774
Accrued expenses
675
690
Accrued compensation
469
551
Income taxes payable
304
173
Debt, current
789
1,052
Total current liabilities
4,092
4,240
Other liabilities
799
757
Total liabilities
4,891
4,997
Total shareholders’ equity
9,348
8,864
Total liabilities and shareholders’ equity
$
14,239
$
13,861
6
WESTERN DIGITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions; unaudited)
Three Months Ended
October 2,
2026
October 3,
2025
Cash flows from operating activities
Net income
$
1,779
$
1,182
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization
104
88
Stock-based compensation
79
53
Deferred income taxes
(30)
55
Gain on retained interest in Sandisk
—
(611)
Other non-cash operating activities, net
3
4
Changes in:
Accounts receivable, net
(206)
131
Inventories
(269)
(101)
Accounts payable
52
248
Other assets and liabilities, net
92
(377)
Net cash provided by operating activities
1,604
672
Cash flows from investing activities
Q1 FY2027 earnings release; dated cash-flow table including operating cash generation · Filed 22/10/2026
Purchases of property, plant and equipment, net
(227)
(73)
Strategic investments and other, net
2
16
Net cash used in investing activities
(225)
(57)
Cash flows from financing activities
Employee stock plans, net
Q1 FY2027 earnings release; continuation of cash-flow table, net purchases of property, plant and equipment · Filed 22/10/2026
PAY MIX CEO FY26 OTHER NEOs FY26 7% 10% 50% 33% 13% 13% 37% 37% Base Salary Target Bonus Annual PSUs Annual RSUs Base Salary Target Bonus Annual PSUs Annual RSUs 17% 83% 26% 74% Annual Long-Term Incentive Annual Long-Term Incentive 44 2026 Proxy Statement Western Digital Proxy Summary Corporate Governance Matters Executive Officers Executive Compensation Equity Compensation Plan Information Stock Ownership Information Audit Committee Matters Additional Information Appendix A FISCAL 2026 COMPENSATION ELEMENTS Compensation Element Characteristics Purpose Performance Link/ Key Benchmark Base Salary lFixed compensation lAttracts, retains and motivates premier executive talent lCompensates executive officers for sustained individual performance lCompetitive with market and industry practices lAdjusted for experience, responsibility, potential and performance Short-Term Incentives (“STI”) lAnnual performance-based cash incentive compensation lMotivates executive officers to drive annual growth and financial performance lEncourages accountability by rewarding achievement of corporate and individual performance objectives lFocuses our executive officers on value creation through achievement of corporate and individual performance objectives that drive our ability to create value for stockholders lNon-GAAP operating income (70% weighting) lRevenue (30% weighting) lIndividual performance modifier (+/- 20%) tied to specific individual performance goals lIndividual performance modifier does not increase award payout if non-GAAP operating income is below threshold lIncludes ESG measures lSTI payouts are capped at 200% of target PSUs lVariable performance-based equity compensation lThree-year performance period with annual performance targets lAnnual achievements averaged to determine payout lEncourages accountability by rewarding achievement of long-term (over a three-year period) corporate and market-based performance objectives lFocuses our executive officers on value creation through achievement of financial objectives that drive our ability to create long-term value for stockholders lAdjusted Free Cash Flow (50%) lNon-GAAP EPS (50%) lThree-year relative Total Shareholder Return (“TSR”) modifier (+/-10%) lIf absolute TSR performance is negative, the relative TSR modifier may not increase the PSU payout and can only be used to decrease such payout lPSU financial metrics payout capped at 200% of target RSUs lVariable service-based equity compensation lVests with respect to 25% after one year and 6.25% quarterly thereafter lProvides alignment with stockholder interests by focusing executive officers on long-term value creation lProvides retention value lValue based on stock price performance * Blue text indicates new for fiscal 2026 In addition to the elements outlined above, we also provide our executive officers with limited perquisites and certain other indirect benefits, as described in the section below entitled “—Other Program Features and Policies.”
2026 proxy; fiscal 2026 compensation elements and performance measures · Filed 05/10/2026
FY2026 FY2027 FY2028 Three-Year Average Payout % (0%-200%) TBD Fiscal 2026 - 2028 PSU Awards One-Year Adjusted Free Cash Flow and non-GAAP EPS Payout 200% One-Year Adjusted Free Cash Flow and non-GAAP EPS Payout TBD One-Year Adjusted Free Cash Flow and non-GAAP EPS Payout TBD Three-Year Relative TSR Modifier (+/-10%) Two-Year Average Payout % (0%-200%) TBD Fiscal 2026 - 2027 CEO Grant One-Year Adjusted Free Cash Flow and non-GAAP EPS Payout 200% One-Year Adjusted Free Cash Flow and non-GAAP EPS Payout TBD Two-Year Relative TSR Modifier (+/-10%) The actual number of units to be earned from these awards will be determined by averaging the achievement levels over the entire two- or three-year performance cycle subject to the applicable payout percentage cap.
2026 proxy; incomplete PSU cycles and annual achievement levels · Filed 05/10/2026
Position
Minimum Ownership Requirement
Chief Executive Officer
6 x Salary
Other Executive Officers
3 x Salary
Executive officers must achieve ownership of the required market value of shares within five years of becoming subject to the guidelines.
2026 proxy; executive ownership thresholds and compliance period · Filed 05/10/2026
Common stock (including shares held indirectly in a trust or by family members living in the same household), unvested RSUs, deferred stock units and common stock beneficially owned by the executive officer count towards the requirement, but PSUs and shares the officer has a right to acquire through exercising stock options (whether or not vested) are not counted.
2026 proxy; securities eligible for executive ownership requirements · Filed 05/10/2026
Any executive officer who has not met the applicable requirement following the compliance period must retain 50% of shares acquired through vesting of equity awards until compliance is achieved.
2026 proxy; executive equity retention requirement following compliance period · Filed 05/10/2026
No hedging, pledging or short-sale or derivative transactions by executive officers or directors.
2026 proxy; executive and director transaction prohibitions · Filed 05/10/2026
Tan’s holdings include 209,000 shares held in a personal investment company and 112,500 shares held in a trust through an investment company.
2026 proxy; specified CEO holdings through investment company and trust · Filed 05/10/2026
The responsibilities of our Chair of the Board include the following: lLeads our Board in oversight of management and company strategy lCalls and chairs Board and stockholder meetings lSets meeting schedules and agendas lFacilitates communication among directors and with management between meetings lConvenes executive sessions of independent directors lRepresents our company in communications with stockholders and other stakeholders as appropriate Executive Sessions All members of our Board of Directors, other than our CEO, are independent.
2026 proxy; independent chair responsibilities and current board independence · Filed 05/10/2026
In order to assure that our independent directors are not inappropriately influenced by management, the independent directors meet without management in executive sessions led by our independent Chair of the Board in conjunction with each regularly scheduled meeting of our Board, and otherwise as deemed necessary by our Chair of the Board or our other independent directors.
2026 proxy; independent director executive sessions · Filed 05/10/2026
All members of the committee during fiscal 2026 were independent directors and none of them were our employees or former employees or had any relationship with us requiring disclosure of certain transactions with related persons under SEC rules.
2026 proxy; fiscal 2026 compensation committee independence · Filed 05/10/2026
Year-Round Stockholder Engagement In fiscal 2026, as part of our regular stockholder engagement program, we contacted stockholders representing approximately 65% of our shares of common stock outstanding and conducted calls with stockholders representing approximately 32% of our shares of common stock outstanding, including separate discussions with both the passive and active investment teams of certain investors.
2026 proxy; actual fiscal 2026 stockholder engagement · Filed 05/10/2026
In the previous fiscal year, on February 21, 2025, we completed the Separation to create two independent public companies, with WD continuing our existing HDD business and Sandisk, formerly a wholly-owned subsidiary of the Company, operating the Flash business.
2026 10-K; completed February 21, 2025 business separation · Filed 14/08/2026
34
Table of Contents
Beginning in the three months ended October 2, 2026, we updated our methodology for identifying customers for purposes of revenue concentration disclosure.
Q1 FY2027 10-Q; effective period of customer concentration methodology change · Filed 23/10/2026
Under the updated methodology, concentrations are attributed to the ultimate end customer when products are purchased on its behalf by distributors, contract manufacturers, or other resellers (collectively referred to as “intermediary purchasers”), rather than being attributed to such intermediary purchasers.
Q1 FY2027 10-Q; attribution to ultimate end customers under revised methodology · Filed 23/10/2026
In connection with these transactions, the company recognized costs primarily related to discounts given to the counterparties of the transaction.
Q1 FY2027 earnings release; transaction costs primarily related to counterparty discounts · Filed 22/10/2026
