Canadian Halal Investor.

NASDAQ Shariah screener · October 2026

Is Western Digital Corporation (WDC) Halal?

PASS

Western Digital Corporation · NASDAQ: WDC · Technology

The short answer

Yes — Western Digital (WDC) passes this Shariah stock screen. Since the February 21, 2025 separation of its Flash business into the independent SanDisk Corporation (trading separately as SNDK since February 24, 2025), WDC is a pure-play hard disk drive maker — data storage hardware for cloud, PC and consumer markets — with no haram segments disclosed in its 10-K. Its FY2026 10-K (filed August 14, 2026) shows total debt of $1,052M, about 0.63% of its ~$167.0B market cap ($462.56 share price, October 1, 2026), far below the ~33% ceiling; and interest income of $51M, about 0.39% of FY2026 revenue ($12,919M), below the 5% ceiling. Third-party coverage is thin: Zoya's public WDC page is self-contradictory (inconclusive), no Musaffa or ShariaPortfolio WDC pages surfaced, though the Shariah-screened Wahed Dow Jones Islamic World ETF held WDC shares as of November 2024. This is a factual screen, not a religious ruling — consult a qualified scholar for personal rulings.

Gate 1 — Business activity: PASS

Western Digital Corporation (NASDAQ: WDC) — San Jose, California — describes itself in its FY2026 10-K (Item 1, "Business") as "a leading developer, manufacturer, and provider of data storage devices and solutions based on hard disk drive ("HDD") technology." On February 21, 2025 (the "Separation Date"), WDC completed the separation of its Flash business unit into Sandisk Corporation (which began independent Nasdaq trading as SNDK on February 24, 2025), and post-spin WDC reports a single reportable segment. Revenue by end market (FY2026): Cloud $11,490M (~89%) — public/private cloud and enterprise customers; Client $726M — OEM and channel HDDs for desktops and notebooks; Consumer $703M — retail external/portable drives, NAS for home and office. WDC designs and manufactures substantially all of its own recording heads and magnetic media (ePMR, OptiNAND, UltraSMR, HAMR roadmap). Business-screen implication (factual): the 10-K discloses no alcohol, gambling, weapons, tobacco, pork, adult entertainment, or interest-based finance segments — pure data-storage hardware. Gate 1 passes. Facts only.

Gate 2 — Debt and cash: PASS

Per WDC's FY2026 Form 10-K (filed August 14, 2026; SEC CIK 106040; balance sheet as of July 3, 2026), total interest-bearing debt was $1,052M — current portion of long-term debt $1,052M + non-current long-term debt $0. Against a market cap of about $166.98B (361,000,000 shares outstanding per the 10-K × $462.56, October 1, 2026), debt ÷ market cap is about 0.63% — far below the ~33% ceiling. Cash and cash equivalents of $1,579M are about 0.95% of market cap. The debt gate passes. Facts only.

Gate 3 — Non-compliant income: PASS

WDC's FY2026 10-K (filed August 14, 2026) reports interest income of $51M against FY2026 net revenue of $12,919M — about 0.39% of revenue, well below the 5% non-compliant income ceiling. The $6,498M "gain on retained interest in Sandisk" in the same filing is a one-time equity-disposition gain from selling down the post-spin SanDisk stake, not interest income. The income gate passes. Facts only.

Key figures used

Frequently asked questions

What does Western Digital do?

Western Digital Corporation (NASDAQ: WDC), headquartered in San Jose, California, describes itself in its FY2026 10-K (Item 1) as "a leading developer, manufacturer, and provider of data storage devices and solutions based on hard disk drive (HDD) technology." Since the February 21, 2025 separation of its Flash business into the independent SanDisk Corporation (ticker SNDK), WDC is a pure-play HDD company — it operates a single reportable segment and reports revenue by end market: Cloud (~89% of FY2026 revenue: data centers, enterprise, hyperscalers), Client (PC OEM and channel HDDs), and Consumer (retail external/portable drives, NAS). It designs and manufactures substantially all of its own recording heads and magnetic media.

Why does WDC pass this Shariah stock screen?

WDC passes all three gates of this screen, so the result is PASS. Business gate: since the February 21, 2025 SanDisk spin-off (Sandisk began separate Nasdaq trading as SNDK on February 24, 2025), Western Digital is a pure-play hard disk drive maker — data storage hardware, sold to cloud/enterprise, PC and consumer markets — with no alcohol, gambling, weapons, tobacco, pork, adult entertainment or interest-based finance segments disclosed in its 10-K. Debt gate: total debt of $1,052M is about 0.63% of its ~$166.98B market cap, far below the ~33% ceiling. Income gate: interest income of $51M is about 0.39% of FY2026 revenue ($12,919M), below the 5% ceiling. This is a factual screen, not a religious ruling — consult a qualified scholar for personal rulings.

What is WDC's interest-bearing debt ratio?

Per Western Digital's FY2026 Form 10-K (filed August 14, 2026; SEC CIK 106040; balance sheet as of July 3, 2026), total interest-bearing debt was $1,052M — current portion of long-term debt $1,052M plus non-current long-term debt $0. Against a market cap of about $166.98B (361,000,000 shares outstanding per the 10-K × $462.56 share price, October 1, 2026), debt ÷ market cap is about 0.63% — far below the ~33% ceiling. Cash and cash equivalents of $1,579M are about 0.95% of market cap. Note: the company retired additional 2028 convertible notes after the balance-sheet date (8-K/A filed August 27, 2026: $191.0M principal exchanged, ~4.65M new shares issued), which would only reduce this ratio further. The debt gate passes.

What is WDC's non-compliant income ratio?

Western Digital's FY2026 10-K (filed August 14, 2026) reports interest income of $51M against FY2026 net revenue of $12,919M — about 0.39% of revenue, well below the 5% non-compliant income ceiling. The $6,498M "gain on retained interest in Sandisk" in the same filing is a one-time equity-disposition gain from selling down the retained SanDisk stake post-spin, not interest income. The income gate passes.

Do Zoya, Musaffa, or ShariaPortfolio cover WDC?

Honestly reported, coverage is mixed. Zoya has a public WDC page, but its auto-generated text is self-contradictory (calling WDC simultaneously compliant/not-compliant, and claiming $2,726M of interest income — versus the $51M in WDC's own FY2026 10-K), so no clean Zoya rating is retrievable without the app — reported as inconclusive, not invented. Musaffa: no WDC page surfaced in search. ShariaPortfolio: no WDC entry found. One dated third-party signal: the Wahed Dow Jones Islamic World ETF (a Shariah-screened fund) held 8,226 WDC shares as of November 30, 2024, per its SEC N-CSR filing. This page applies the screen directly from WDC's own filings.

Sources

Screened 2026-10-01 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).