Western Digital (WDC) risk factors: FY2026 10-K

1. Loss of revenue from Cloud or other key customers could harm our operating results.new
2. If we do not properly manage technology transitions and product development and introduction, our competitiveness and operating results may be negatively affected.
3. We are dependent on a limited number of qualified suppliers who provide critical services, materials or components, and a disruption in our supply chain could negatively affect our business.
4. Long-term agreements expose us to certain execution, financial, and market risks, which could be significant.new
5. We are subject to risks related to product defects, which could result in product recalls or epidemic failures and could subject us to warranty, litigation or indemnification claims that exceed our expectations or estimates.
6. The loss of our key management, staff and skilled employees or the inability to hire and develop new employees could negatively impact our business prospects.
7. Failure to successfully execute on strategic initiatives including acquisitions, divestitures or cost saving measures may negatively impact our future results.
8. Our strategic relationships subject us to risks and uncertainties that could harm our business.

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1. Adverse global or regional conditions could harm our business.
2. Changes in U.S. trade policy and the impact of tariffs and retaliatory actions may have a material adverse effect on our business and results of operations.Tariffs
3. Our industry is subject to variations in demand, pricing and competitive factors, which can negatively impact our business.new
4. Our operations, and those of certain of our suppliers and customers, are subject to substantial risk of damage or disruption.
5. We may be adversely affected by the risks, challenges, and evolving regulatory landscape associated with the use of AI in our operations, product development, and business practices.newAI
6. We have historically experienced variability in our sales and cyclicality in our industry, which could cause our operating results to fluctuate. In addition, accurately forecasting demand is difficult, which could harm our business.reworded
7. The compromise, damage or interruption of our technology infrastructure, information systems or products by cybersecurity incidents, data security breaches, other security problems, design defects, information system failures or other events could have a material negative impact on our business.Cybersecurity

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1. Our incurrence of additional debt may negatively impact our liquidity, restrict our operations and ability to respond to business opportunities, and increase our vulnerability to adverse economic and industry conditions.reworded
2. Tax matters may materially affect our financial position and results of operations.
3. If the completed Separation of Sandisk were to fail to qualify as a transaction that is generally tax-free for U.S. federal income tax purposes, we and our stockholders could be subject to significant tax liabilities.new
4. Any decisions to reduce or discontinue paying cash dividends to our stockholders or the repurchase of our shares of common stock pursuant to our previously announced share repurchase program could cause the market price for our common stock to decline.
5. Fluctuations in currency exchange rates as a result of our international operations may negatively affect our operating results.
6. Increases in our customers’ credit risk could result in credit losses and term extensions under existing contracts with customers with credit losses could result in an increase in our operating costs.

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1. We are subject to laws, rules and regulations relating to the collection, use, sharing and security of data, including personal data, and our failure to comply with these laws, rules and regulations could subject us to proceedings by governmental entities or others and cause us to incur penalties, significant legal liability, or loss of customers, loss of revenue and reputational harm.
2. We are and may continue to be involved in litigation, investigations and governmental proceedings, which may be costly, may divert the efforts of our key personnel and could result in adverse court rulings, fines or penalties, which could materially harm our business.reworded
3. The nature of our industry and its reliance on IP and other proprietary information subjects us and our suppliers, customers and partners to the risk of significant litigation.
4. Our reliance on IP and other proprietary information subjects us to the risk that these key components of our business could be copied by competitors.
5. We are and may in the future be subject to state, federal and international legal and regulatory requirements, such as environmental, labor, health and safety, trade and public company reporting and disclosure regulations, customers’ standards of corporate citizenship and industry and coalition standards, such as those established by the Responsible Business Alliance (“RBA”), and compliance with those regulations and requirements could cause an increase in our operating costs and failure to comply may harm our business.
6. Our aspirations, disclosures and actions related to environmental, social and governance (“ESG”) matters expose us to risks that could adversely affect our reputation and performance.
7. The exclusive forum provisions in our Bylaws could limit our stockholders’ ability to bring a claim in a judicial forum that it finds favorable for disputes with the company or its directors, officers or other employees.

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Headings in the FY2025 10-K with no match this year.

1. We are subject to risks related to the separation of Sandisk, our former Flash business, into an independent public company.
2. 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.
3. Loss of revenue from the Cloud end market or a key customer, or consolidation among our customer base, could harm our operating results.