You can do it in some modern browsers using bleeding edge HTML5 apis for which you would need to use GWT JSNI code. There are no api's from GWT team as is.
HTML5 FileReader
FileReader includes four options for reading a file, asynchronously:
FileReader.readAsBinaryString(Blob|File) - The result property will contain the file/blob's data as a binary string.
FileReader.readAsText(Blob|File, opt_encoding) - The result property will contain the file/blob's data as a text string.
FileReader.readAsDataURL(Blob|File) - The result property will contain the file/blob's data encoded as a data URL.
FileReader.readAsArrayBuffer(Blob|File) - The result property will contain the file/blob's data as an ArrayBuffer object.
Example of GWT wrapper over these -
https://github.com/bradrydzewski/gwt-filesystem
You can read about it more from here - How to retrieve file from GWT FileUpload component?