WDC

Western Digital Corporation

HALAL — METHODS DIFFERstock

Is WDC Halal?

Data-storage hardware with a generally permissible core business; current total-assets screens pass while activity remains incomplete.

What You Should Know

Western Digital develops and sells HDD data-storage devices for cloud, client and consumer markets. Debt/assets are 10.63%, liquidity is 13.63%, receivables plus cash are 26.21% and disclosed interest income is 0.45% of nine-month revenue; activity-level revenue remains incompletely disclosed.

⚠️ Concerns

  • Customer end uses, including AI, surveillance and government deployments, are not fully disaggregated
  • Cash-equivalent and Treasury treatment can differ by methodology
  • Convertible notes carry stated interest obligations
  • Sandisk separation, retained shares, tariffs and hyperscale concentration require review
  • E-waste, supply-chain, cybersecurity and cross-border manufacturing require continuing review

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-04-03; calculated 2026-07-13.

USD · millions
Interest-bearing debt / assets
10.63%Within limit
Below 33.333% under FTSE Yasaar

1,600 / 15,045

Cash + interest-bearing securities / assets
13.63%Within limit
Below 33.333% under FTSE Yasaar

2,050 / 15,045

Receivables + cash / assets
26.21%Within limit
Below 50% under FTSE Yasaar

3,944 / 15,045

Non-compliant income / revenue
0.45%Within limit
No more than 5% under FTSE Yasaar

41 / 9,172

FTSE Yasaar
v4.6, February 2026
Financial
Pass
Overall
Incomplete

Debt is 10.63%, liquidity is 13.63%, receivables plus cash are 26.21%, and disclosed interest income is 0.45%; each is below the examined FTSE asset and income limits. Business activity remains incomplete because the filing does not quantify a universal prohibited-revenue numerator.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Pass
Overall
Incomplete

Debt is 10.63%, liquidity is 13.63% and receivables plus cash are 26.21%, below the examined MSCI total-assets limits. This is a calculation against the named method, not an index-membership claim; business allocation remains incomplete.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Pass
Overall
Incomplete

Debt is 10.63% and liquidity is 13.63%, below the examined 33% Malaysia SAC financial limits. This is a calculation against SAC ratios, not an official classification of a U.S.-listed security; screened business revenue remains unavailable.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Not calculated

A properly licensed and reproducible historical market-cap series is not stored, so these methods are not estimated from a current spot price.

Business-activity disclosure

Western Digital develops, manufactures and sells hard-disk drives and data-storage devices for cloud, client and consumer markets. Data-storage hardware is generally permissible technology commerce and no conventional lending segment is disclosed.

Limitation: The filing does not quantify every customer industry, government or surveillance deployment, data-center workload, or product end use into a universal prohibited-revenue numerator.

Purification

Western Digital discloses $41 million of interest income, or 0.45% of nine-month revenue, but does not provide a complete activity-level allocation for customer end uses or every cash-equivalent instrument. No fixed purification percentage is prescribed here; readers should follow the scholar or methodology they use.

Inputs, assumptions and primary sources
  • Debt uses $1.600 billion of outstanding 3.00% convertible senior notes at April 3, 2026. Western Digital redeemed its other senior notes and retired its bridge and term loans through a Sandisk-share exchange; operating lease liabilities are not entered as conventional debt.
  • Cash uses $2.050 billion of cash and cash equivalents. The filing says cash equivalents are primarily money-market funds invested in U.S. Treasury and government-agency securities, with certificates of deposit and other investments held from time to time; those instruments are not added again as separate securities.
  • Receivables use $1.894 billion of net accounts receivable. Western Digital reports no financing arm; customer concentration is disclosed separately.
  • Revenue uses $9.172 billion for the nine months ended April 3, 2026. Western Digital reports cloud, client and consumer end markets and operates one HDD reportable segment after the Sandisk separation.
  • The filing reports $41 million of interest income for the nine months ended April 3, 2026. It is used for the income screen; gains on retained Sandisk shares and other non-interest items are not treated as interest income.
  • Western Digital's principal business is HDD data-storage hardware for cloud, client and consumer markets. The filing does not quantify every customer end use, government or surveillance deployment, or other potentially non-compliant activity into a universal revenue numerator.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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