Western Digital (WDC)
Market Price (8/3/2026): $544.36 | Market Cap: $186.2 BilInvestor Relations Sector: Information Technology | Industry: Technology Hardware, Storage & Peripherals
Western Digital (WDC)
Market Price (8/3/2026): $544.36Market Cap: $186.2 BilSector: Information TechnologyIndustry: Technology Hardware, Storage & Peripherals
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 32% Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 31% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 28%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 25%, CFO LTM is 3.3 Bil, FCF LTM is 2.9 Bil Stock buyback supportStock Buyback 3Y Total is 2.1 Bil Megatrend and thematic driversMegatrends include Artificial Intelligence, and Cloud Computing. Themes include Data Centers & Infrastructure, Hybrid Cloud Solutions, Show more. | Stock price has recently run up significantly6M Rtn6 month market price return is 118%, 12M Rtn12 month market price return is 614% Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 84% Key risksWDC key risks include [1] heavy revenue concentration with a few large, Show more. |
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 32% |
| Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 31% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 28%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 25%, CFO LTM is 3.3 Bil, FCF LTM is 2.9 Bil |
| Stock buyback supportStock Buyback 3Y Total is 2.1 Bil |
| Megatrend and thematic driversMegatrends include Artificial Intelligence, and Cloud Computing. Themes include Data Centers & Infrastructure, Hybrid Cloud Solutions, Show more. |
| Stock price has recently run up significantly6M Rtn6 month market price return is 118%, 12M Rtn12 month market price return is 614% |
| Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 84% |
| Key risksWDC key risks include [1] heavy revenue concentration with a few large, Show more. |
Qualitative Assessment
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Western Digital (WDC) stock has gained about 25% since 4/30/2026 because of the following key factors:
1. Strong Fiscal Q3 2026 Earnings Beat and Positive Outlook. Western Digital reported strong fiscal Q3 2026 results on April 30, 2026, with adjusted earnings per share of $2.72, surpassing the consensus estimate of $2.39 by $0.33. Revenue for the quarter reached $3.34 billion, exceeding expectations of $3.25 billion and marking a 45.5% increase year-over-year. Management further boosted confidence by guiding for fiscal Q4 2026 revenue to increase by 36% to 44% year-over-year. The company also raised its quarterly dividend from $0.12 to $0.15 per share.
2. Surging AI-Driven Demand for Data Center Storage. The stock benefited significantly from increasing demand for high-capacity hard drives and data center storage solutions, propelled by the growth of AI-generated data and cloud expansion. Analysts have noted tighter industry supply and improving fundamentals, contributing to a rally in memory stocks. Western Digital is positioned to capitalize on over $750 billion in planned 2026 Big Tech spending on AI infrastructure. The company's CFO highlighted in June 2026 that the demand cycle has substantial runway, particularly with the anticipated scale-up of 40-terabyte drive shipments in the second half of calendar 2026.
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Western Digital (WDC) stock has gained about 25% since 4/30/2026 because of the following key factors:
1. Strong Fiscal Q3 2026 Earnings Beat and Positive Outlook. Western Digital reported strong fiscal Q3 2026 results on April 30, 2026, with adjusted earnings per share of $2.72, surpassing the consensus estimate of $2.39 by $0.33. Revenue for the quarter reached $3.34 billion, exceeding expectations of $3.25 billion and marking a 45.5% increase year-over-year. Management further boosted confidence by guiding for fiscal Q4 2026 revenue to increase by 36% to 44% year-over-year. The company also raised its quarterly dividend from $0.12 to $0.15 per share.
2. Surging AI-Driven Demand for Data Center Storage. The stock benefited significantly from increasing demand for high-capacity hard drives and data center storage solutions, propelled by the growth of AI-generated data and cloud expansion. Analysts have noted tighter industry supply and improving fundamentals, contributing to a rally in memory stocks. Western Digital is positioned to capitalize on over $750 billion in planned 2026 Big Tech spending on AI infrastructure. The company's CFO highlighted in June 2026 that the demand cycle has substantial runway, particularly with the anticipated scale-up of 40-terabyte drive shipments in the second half of calendar 2026.
3. Positive Analyst Upgrades and Increased Price Targets. A wave of positive analyst sentiment and price target revisions contributed to the stock's upward trend. For instance, Citigroup raised its price target from $685.00 to $800.00 on July 13, 2026, while maintaining a "buy" rating. Melius Research set a $1,050.00 target price on June 29, 2026. Furthermore, Wells Fargo & Company increased its target from $575.00 to $730.00 on July 10, 2026. Rosenblatt Securities notably raised its price target from $500 to $900, citing a favorable pricing cycle in the hard disk drive industry with gross margins on additional sales expected to approach 80%.
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Stock Movement Drivers
Fundamental Drivers
The 25.4% change in WDC stock from 4/30/2026 to 8/2/2026 was primarily driven by a 55.4% change in the company's Net Income Margin (%).| (LTM values as of) | 4302026 | 8022026 | Change |
|---|---|---|---|
| Stock Price ($) | 434.41 | 544.84 | 25.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 10,734 | 11,777 | 9.7% |
| Net Income Margin (%) | 35.4% | 55.1% | 55.4% |
| P/E Multiple | 38.9 | 28.7 | -26.2% |
| Shares Outstanding (Mil) | 341 | 342 | -0.3% |
| Cumulative Contribution | 25.4% |
Market Drivers
4/30/2026 to 8/2/2026| Return | Correlation | |
|---|---|---|
| WDC | 25.4% | |
| Market (SPY) | 3.9% | 59.0% |
| Sector (XLK) | 9.9% | 77.0% |
Fundamental Drivers
The 117.9% change in WDC stock from 1/31/2026 to 8/2/2026 was primarily driven by a 55.4% change in the company's Net Income Margin (%).| (LTM values as of) | 1312026 | 8022026 | Change |
|---|---|---|---|
| Stock Price ($) | 250.05 | 544.84 | 117.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 10,734 | 11,777 | 9.7% |
| Net Income Margin (%) | 35.4% | 55.1% | 55.4% |
| P/E Multiple | 22.4 | 28.7 | 28.2% |
| Shares Outstanding (Mil) | 341 | 342 | -0.3% |
| Cumulative Contribution | 117.9% |
Market Drivers
1/31/2026 to 8/2/2026| Return | Correlation | |
|---|---|---|
| WDC | 117.9% | |
| Market (SPY) | 8.3% | 56.6% |
| Sector (XLK) | 22.0% | 70.9% |
Fundamental Drivers
The 594.3% change in WDC stock from 7/31/2025 to 8/2/2026 was primarily driven by a 197.7% change in the company's Net Income Margin (%).| (LTM values as of) | 7312025 | 8022026 | Change |
|---|---|---|---|
| Stock Price ($) | 78.48 | 544.84 | 594.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 8,919 | 11,777 | 32.0% |
| Net Income Margin (%) | 18.5% | 55.1% | 197.7% |
| P/E Multiple | 16.6 | 28.7 | 73.6% |
| Shares Outstanding (Mil) | 348 | 342 | 1.8% |
| Cumulative Contribution | 594.3% |
Market Drivers
7/31/2025 to 8/2/2026| Return | Correlation | |
|---|---|---|
| WDC | 594.3% | |
| Market (SPY) | 19.2% | 51.9% |
| Sector (XLK) | 34.0% | 65.4% |
Fundamental Drivers
The 1619.9% change in WDC stock from 7/31/2023 to 8/2/2026 was primarily driven by a 2119.3% change in the company's P/S Multiple.| (LTM values as of) | 7312023 | 8022026 | Change |
|---|---|---|---|
| Stock Price ($) | 31.68 | 544.84 | 1619.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 14,174 | 11,777 | -16.9% |
| P/S Multiple | 0.7 | 15.8 | 2119.3% |
| Shares Outstanding (Mil) | 319 | 342 | -6.7% |
| Cumulative Contribution | 1619.9% |
Market Drivers
7/31/2023 to 8/2/2026| Return | Correlation | |
|---|---|---|
| WDC | 1619.9% | |
| Market (SPY) | 68.9% | 53.4% |
| Sector (XLK) | 100.3% | 63.5% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| WDC Return | 18% | -52% | 66% | 14% | 288% | 210% | 1193% |
| Peers Return | 49% | -30% | 60% | 24% | 97% | 161% | 952% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 9% | 98% |
Monthly Win Rates [3] | |||||||
| WDC Win Rate | 50% | 42% | 58% | 67% | 92% | 71% | |
| Peers Win Rate | 63% | 38% | 63% | 57% | 63% | 69% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 43% | |
Max Drawdowns [4] | |||||||
| WDC Max Drawdown | -32% | -55% | -29% | -30% | -43% | -38% | |
| Peers Max Drawdown | -20% | -44% | -17% | -32% | -42% | -27% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: STX, MU, DELL, HPE, NTAP. See WDC Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 7/31/2026 (YTD)
How Low Can It Go
| Event | WDC | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -42.9% | -18.8% |
| % Gain to Breakeven | 75.1% | 23.1% |
| Time to Breakeven | 60 days | 79 days |
| 2024 Yen Carry Trade Unwind | ||
| % Loss | -29.9% | -7.8% |
| % Gain to Breakeven | 42.6% | 8.5% |
| Time to Breakeven | 320 days | 18 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -25.4% | -6.7% |
| % Gain to Breakeven | 34.1% | 7.1% |
| Time to Breakeven | 100 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -51.2% | -24.5% |
| % Gain to Breakeven | 104.9% | 32.4% |
| Time to Breakeven | 544 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -58.0% | -33.7% |
| % Gain to Breakeven | 138.3% | 50.9% |
| Time to Breakeven | 337 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -39.9% | -19.2% |
| % Gain to Breakeven | 66.5% | 23.8% |
| Time to Breakeven | 212 days | 105 days |
In The Past
Western Digital's stock fell -42.9% during the 2025 US Tariff Shock. Such a loss loss requires a 75.1% gain to breakeven.
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Asset Allocation
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| Event | WDC | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -42.9% | -18.8% |
| % Gain to Breakeven | 75.1% | 23.1% |
| Time to Breakeven | 60 days | 79 days |
| 2024 Yen Carry Trade Unwind | ||
| % Loss | -29.9% | -7.8% |
| % Gain to Breakeven | 42.6% | 8.5% |
| Time to Breakeven | 320 days | 18 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -25.4% | -6.7% |
| % Gain to Breakeven | 34.1% | 7.1% |
| Time to Breakeven | 100 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -51.2% | -24.5% |
| % Gain to Breakeven | 104.9% | 32.4% |
| Time to Breakeven | 544 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -58.0% | -33.7% |
| % Gain to Breakeven | 138.3% | 50.9% |
| Time to Breakeven | 337 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -39.9% | -19.2% |
| % Gain to Breakeven | 66.5% | 23.8% |
| Time to Breakeven | 212 days | 105 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -51.3% | -12.2% |
| % Gain to Breakeven | 105.3% | 13.9% |
| Time to Breakeven | 349 days | 62 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -59.7% | -6.8% |
| % Gain to Breakeven | 148.1% | 7.3% |
| Time to Breakeven | 525 days | 15 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -35.8% | -17.9% |
| % Gain to Breakeven | 55.6% | 21.8% |
| Time to Breakeven | 107 days | 123 days |
| 2010 Eurozone Sovereign Debt Crisis / Flash Crash | ||
| % Loss | -40.2% | -15.4% |
| % Gain to Breakeven | 67.1% | 18.2% |
| Time to Breakeven | 745 days | 125 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -67.5% | -53.4% |
| % Gain to Breakeven | 208.0% | 114.4% |
| Time to Breakeven | 249 days | 1085 days |
In The Past
Western Digital's stock fell -42.9% during the 2025 US Tariff Shock. Such a loss loss requires a 75.1% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Western Digital (WDC)
Western Digital Corporation (WDC) is a global leader in data storage devices and solutions. The company designs, manufactures, and sells a comprehensive range of products for storing digital information, primarily focusing on both traditional hard disk drives (HDDs) and advanced flash-based solid state drives (SSDs) and memory products.
Its extensive product portfolio is categorized into three main areas. Client devices include HDDs and SSDs for personal computers, gaming consoles, and smart video systems, as well as embedded flash storage for mobile phones, tablets, and applications in automotive, IoT, and industrial sectors. Data center devices and solutions comprise enterprise-grade HDDs and SSDs, along with software and storage platforms for servers, online transactions, and big data analysis. Client solutions encompass external HDDs, portable SSDs, removable memory cards for consumer devices like cameras and phones, and USB flash drives.
Western Digital markets its products under well-known brands such as G-Technology, SanDisk, and WD. The company serves a diverse global customer base, including original equipment manufacturers (OEMs) who integrate storage into their products, as well as distributors, dealers, resellers, and retailers. Its products cater to a wide array of markets, from consumer electronics and mobile computing to enterprise data centers and specialized industrial applications across North America, Europe, Asia, and other international regions.
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They are the Intel of data storage, providing the core memory components (hard drives, SSDs, flash) for everything from consumer devices to massive data centers.
Imagine Samsung, but solely focused on manufacturing and selling digital storage devices (hard drives, SSDs, memory cards) for a vast range of products, from phones to enterprise servers.
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- Hard Disk Drives (HDDs): Data storage devices offered for client computing devices and enterprise data centers.
- Solid State Drives (SSDs): High-performance, flash-based storage solutions for client devices, embedded applications, and enterprise servers.
- Flash-based Embedded and Removable Storage: Compact flash-based products including memory wafers, embedded storage for mobile devices, and removable cards/USB drives.
- Data Center Storage Solutions: Comprehensive systems and platforms designed for enterprise data storage, including tiered models and software.
- External Storage and Wireless Drives: Portable and desktop external storage products (HDDs and SSDs), as well as wireless drives for backup and streaming.
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Western Digital (WDC) primarily sells its products to other companies (B2B) across various categories, as explicitly stated in its description: "original equipment manufacturers, distributors, dealers, resellers, and retailers."
Based on its product offerings, the major customer types and examples of companies that would likely be significant customers include:
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Original Equipment Manufacturers (OEMs): Companies that integrate Western Digital's HDDs, SSDs, and flash-based embedded storage into their own final products.
- PC and Laptop Manufacturers:
- HP Inc. (HPQ)
- Dell Technologies Inc. (DELL)
- Apple Inc. (AAPL)
- Gaming Console Manufacturers:
- Sony Group Corporation (SONY)
- Microsoft Corporation (MSFT) (for Xbox)
- Mobile and Tablet Manufacturers:
- Apple Inc. (AAPL)
- Server and Enterprise System Manufacturers:
- Hewlett Packard Enterprise Company (HPE)
- Dell Technologies Inc. (DELL)
- PC and Laptop Manufacturers:
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Hyperscale Cloud Service Providers and Data Center Operators: Large technology companies that purchase enterprise storage solutions for their extensive data centers and cloud infrastructure.
- Amazon.com, Inc. (AMZN) (for Amazon Web Services - AWS)
- Microsoft Corporation (MSFT) (for Azure)
- Alphabet Inc. (GOOGL) (for Google Cloud)
- Meta Platforms, Inc. (META)
-
Distributors and Major Retailers: Companies that purchase Western Digital's branded products (such as SanDisk, WD, and G-Technology) for resale through their distribution networks or retail stores to businesses and individual consumers.
- Major Electronics Distributors:
- Arrow Electronics, Inc. (ARW)
- Avnet, Inc. (AVT)
- Large Retail Chains (including e-commerce):
- Amazon.com, Inc. (AMZN)
- Best Buy Co., Inc. (BBY)
- Walmart Inc. (WMT)
- Major Electronics Distributors:
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- Showa Denko K.K. (SDKYY)
- Hoya Corporation (HOCPY)
- Nidec Corporation (NJDCY)
- TDK Corporation (TTDKY)
- Marvell Technology, Inc. (MRVL)
- Silicon Motion Technology Corporation (SIMO)
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Irving Tan, Chief Executive Officer
Irving Tan leads Western Digital as its Chief Executive Officer, a role he assumed following the company's separation of its Flash business in early 2025. He has decades of experience in sales, global operations, market transitions, and customer and government dynamics. Before becoming CEO, Tan served as Western Digital's Executive Vice President for Global Operations, overseeing global operations functions, procurement, supply chain, and IT. He is also a veteran of Cisco. Tan currently chairs the Board of Directors for SATS and is on the Board of Directors for the U.S.-Japan Business Council. His predecessor, David Goeckeler, became CEO of the independent SanDisk.
Kris Sennesael, EVP, Chief Financial Officer
Kris Sennesael became Western Digital's Chief Financial Officer effective May 12, 2025, bringing over 25 years of experience in finance and general management within the semiconductor and technology sectors. In this role, he is responsible for the company's global finance organization, including accounting, financial planning and analysis, tax, treasury, internal audit, investor relations, and corporate real estate. Prior to joining Western Digital, Sennesael served as CFO at Skyworks Solutions, where he contributed to scaling the business through organic and inorganic growth strategies. His career also includes CFO positions at Enphase Energy and Standard Microsystems, as well as leadership roles at ON Semiconductor, AMI Semiconductor, and Alcatel Microelectronics. Sennesael currently serves on the Board of Directors of MaxLinear.
B. Scott Davis, Executive Vice President and Chief Sales & Marketing Officer
B. Scott Davis serves as Executive Vice President and Chief Sales & Marketing Officer at Western Digital.
Cynthia Tregillis, EVP, Chief Legal Officer & Secretary
Cynthia Tregillis holds the position of Executive Vice President, Chief Legal Officer & Secretary at Western Digital.
Katie Watson, Chief Human Resources Officer
Katie Watson is the Chief Human Resources Officer for Western Digital.
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Cyclicality of the Storage Industry and Customer Concentration: Western Digital operates in a storage industry historically prone to "boom-and-bust" cycles. The company's business is heavily concentrated on a few hyperscale cloud clients, with the Cloud segment driving a significant portion of its revenue. This makes Western Digital highly vulnerable to the capital expenditure cycles and purchasing pattern shifts of these major customers. A slowdown in spending from these key clients could immediately impact Western Digital's top line.
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Technological Execution and Competition: The data storage market is intensely competitive and rapidly evolving. Western Digital faces risks related to the continuous need for technological innovation, such as perfecting complex laser-assisted recording (HAMR) for higher-capacity drives, to maintain its density leadership against rivals like Seagate Technology. Additionally, while HDDs currently offer a better cost-per-terabyte for large-scale data storage, a precipitous drop in NAND Flash prices could lead to high-capacity SSDs beginning to cannibalize parts of the HDD market, posing a competitive threat.
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Geopolitical and Trade Headwinds: Western Digital maintains significant global supply chain and manufacturing operations, particularly in Southeast Asia. This exposes the company to geopolitical risks, including ongoing U.S.-China trade disputes and the potential for new tariffs, which could impact its global supply chain, manufacturing costs, and overall profitability. Macroeconomic volatility and rising global trade tensions could also trigger demand fluctuations across its enterprise, distribution, and retail segments.
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The widespread and accelerating shift of consumer and enterprise data storage from local/on-premise physical devices to cloud-based solutions.
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Addressable Markets for Western Digital's Main Products and Services
Western Digital Corporation (WDC) operates in several data storage markets, offering a range of products including hard disk drives (HDDs), solid-state drives (SSDs), flash-based embedded storage, data center solutions, and client solutions like external drives, removable cards, and USB flash drives. The addressable market sizes for these key product categories are substantial and predominantly global.Solid State Drives (SSDs)
The global Solid State Drive (SSD) market was valued at approximately USD 19.1 billion in 2023 and is projected to reach USD 55.1 billion by 2030, growing at a compound annual growth rate (CAGR) of 16.5% from 2024 to 2030. Other estimates place the global SSD market at USD 59.5 billion in 2024, with a projection to reach USD 166.1 billion by 2033 at a CAGR of 12.1%. The client SSD market, specifically for consumer and client-grade devices, was valued at approximately USD 10.3 billion in 2024 and is projected to reach USD 65.9 billion by 2030, growing at a CAGR of 36.3%. The enterprise SSD segment is expected to grow at the highest rate, with projections indicating a 40% revenue share by the end of 2035 for the enterprise segment within the broader SSD market.Hard Disk Drives (HDDs)
The global hard disk drive (HDD) market was estimated at USD 44.31 billion in 2024. Another report indicates the global HDD market reached approximately USD 49.68 billion in 2025, with forecasts suggesting an expansion to USD 92.55 billion by 2034. The market is projected to reach USD 117.5 billion by 2036, reflecting a CAGR of 5.30% from 2026. Enterprise adoption of HDDs accounted for 58% of total market usage in 2025.Data Center Storage
The global data center storage market was valued at USD 61.94 billion in 2024 and is projected to reach USD 148.39 billion by 2032, growing at a CAGR of 11.54% from 2025 to 2032. Another estimate for the global data center storage market values it at USD 63.72 billion in 2024, with a projection to surpass USD 208.96 billion by 2034, growing at a CAGR of 12.61% from 2025 to 2034. North America currently holds the largest share of the global data center storage market, accounting for approximately 40.1% to 45% in 2024.Flash-Based Embedded Storage Products
The global embedded storage solutions market was valued at approximately USD 10.24 billion in 2023 and is predicted to grow to around USD 22.07 billion by 2032, with a CAGR of roughly 8.91% between 2024 and 2032. Universal Flash Storage (UFS), a key component in embedded storage, was estimated at USD 7.7 billion globally in 2024 and is expected to reach USD 21.7 billion by 2030, growing at a CAGR of 18.8%.Client Solutions (External HDD/SSD, Removable Cards, USB Flash Drives)
The external hard disk market was valued at US$ 5.54 billion in 2025 and is expected to reach US$ 8.56 billion by 2032, with a CAGR of 6.4% from 2026-2032. The external SSD market was valued at USD 2.38 billion in 2024 and is projected to grow to USD 3.84 billion by 2032, exhibiting a CAGR of 7.2%. The global USB Flash Drive market size is projected to be USD 5.93 billion in 2025 and reach USD 8.77 billion by 2031, growing at a CAGR of 6.66% from 2026 to 2031. Another source estimates the global USB Flash Drives market size at USD 6.14 billion in 2025, with growth to USD 11.37 billion by 2033 at a CAGR of 8.00%.AI Analysis | Feedback
Western Digital (WDC) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market trends:
- Strong Demand for High-Capacity Nearline Drives in Cloud and Enterprise: Western Digital is experiencing robust demand for its high-capacity nearline drives, particularly from hyperscale cloud providers and enterprise data centers. The cloud segment consistently represents a significant portion of the company's total revenue and is a major growth engine. The company has reported strong year-over-year revenue increases driven by this demand, with a strategic focus on delivering scalable and cost-effective storage solutions for these markets.
- Growth Driven by AI-Powered Data Expansion: The accelerating proliferation of Artificial Intelligence (AI) across various industries is generating a rapid increase in data creation and the demand for storage. Use cases such as generative AI workloads (text-to-image, text-to-video) and the need for massive data lakes to fuel AI models are projected to significantly boost HDD exabyte shipments, with an expected 23% compound annual growth rate (CAGR) from 2024 to 2028.
- Advancements and Adoption of Next-Generation HDD Technologies: Western Digital's continued innovation in hard disk drive (HDD) technology, including Heat-Assisted Magnetic Recording (HAMR), Energy-Assisted Perpendicular Magnetic Recording (ePMR), and UltraSMR (Shingled Magnetic Recording), is crucial for meeting the escalating demand for higher capacity storage. The company has been shipping millions of units of its latest generation ePMR and UltraSMR products, and HAMR technology development is accelerating with qualifications planned with hyperscale customers in the first half of calendar year 2026.
- Strategic Focus on Data Center and Cloud Markets: The company has reinforced its leadership in delivering world-class, sustainable storage solutions at scale, specifically targeting the ever-growing data demands of the cloud and enterprise markets. This strategic emphasis ensures that Western Digital remains a trusted partner for hyperscale cloud providers, offering solutions with low total cost of ownership (TCO) that align with their expanding infrastructure needs.
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Share Repurchases
- In February 2026, Western Digital's Board of Directors authorized an additional $4.0 billion for share repurchases.
- As of February 2, 2026, approximately $484 million remained under a prior share repurchase authorization.
- The company repurchased approximately 3.8 million shares for $615 million in fiscal Q2 2026, contributing to $1.4 billion returned to shareholders through dividends and buybacks since fiscal Q4 2025.
Outbound Investments
- In January 2026, Western Digital announced a strategic investment in Qolab to support next-generation quantum hardware and nanofabrication process innovation.
Capital Expenditures
- Western Digital's capital expenditures have decreased from $1.146 billion in fiscal year 2021 to $412 million in fiscal year 2025.
- The latest twelve months (TTM) capital expenditures were $365 million, with $92 million reported for Q2 fiscal year 2026.
- The company's capital allocation strategy includes reinvestment in the business for maintaining existing and expanding new property, plant, and equipment, with a focus on high-value end markets and the AI-driven data economy.
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 475.11 |
| Mkt Cap | 187.8 |
| Rev LTM | 25,286 |
| Op Inc LTM | 3,459 |
| FCF LTM | 3,447 |
| FCF 3Y Avg | 1,966 |
| CFO LTM | 4,822 |
| CFO 3Y Avg | 3,246 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 30.5% |
| Rev Chg 3Y Avg | 13.1% |
| Rev Chg Q | 44.8% |
| QoQ Delta Rev Chg LTM | 9.6% |
| Op Inc Chg LTM | 80.1% |
| Op Inc Chg 3Y Avg | 21.4% |
| Op Mgn LTM | 27.0% |
| Op Mgn 3Y Avg | 14.8% |
| QoQ Delta Op Mgn LTM | 2.3% |
| CFO/Rev LTM | 27.0% |
| CFO/Rev 3Y Avg | 15.4% |
| FCF/Rev LTM | 23.3% |
| FCF/Rev 3Y Avg | 8.2% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 187.8 |
| P/S | 7.7 |
| P/Op Inc | 26.3 |
| P/EBIT | 24.1 |
| P/E | 30.0 |
| P/CFO | 19.6 |
| Total Yield | 3.7% |
| Dividend Yield | 0.5% |
| FCF Yield 3Y Avg | 3.1% |
| D/E | 0.0 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 3.7% |
| 3M Rtn | 55.8% |
| 6M Rtn | 114.2% |
| 12M Rtn | 340.0% |
| 3Y Rtn | 898.9% |
| 1M Excs Rtn | -5.6% |
| 3M Excs Rtn | 56.5% |
| 6M Excs Rtn | 86.5% |
| 12M Excs Rtn | 328.8% |
| 3Y Excs Rtn | 848.0% |
Comparison Analyses
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Hard disk drives (HDD) | 9,520 | 6,317 | 6,255 | 9,040 | 8,216 |
| Flash-based products (Flash) | 6,063 | 9,753 | 8,706 | ||
| Total | 9,520 | 6,317 | 12,318 | 18,793 | 16,922 |
| $ Mil | 2001 |
|---|---|
| WDT | -4 |
| All Other | -30 |
| Total | -34 |
| $ Mil | 2025 | 2024 |
|---|---|---|
| Hard disk drives (HDD) | 1,643 | -765 |
| Total | 1,643 | -765 |
| $ Mil | 2001 |
|---|---|
| WDT | 496 |
| All Other | 12 |
| Total | 508 |
Price Behavior
| Market Price | $544.84 | |
| Market Cap ($ Bil) | 186.3 | |
| First Trading Date | 01/02/1987 | |
| Distance from 52W High | -27.0% | |
| 50 Days | 200 Days | |
| DMA Price | $561.26 | $331.71 |
| DMA Trend | up | up |
| Distance from DMA | -2.9% | 64.2% |
| 3M | 1YR | |
| Volatility | 98.9% | 77.2% |
| Downside Capture | 405.56 | 262.53 |
| Upside Capture | 453.39 | 437.01 |
| Correlation (SPY) | 59.0% | 52.1% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 4.43 | 4.57 | 4.23 | 3.43 | 3.07 | 1.96 |
| Up Beta | 14.86 | 9.41 | 7.70 | 4.69 | 3.32 | 1.76 |
| Down Beta | -2.43 | 1.57 | 1.36 | 1.72 | 1.92 | 1.72 |
| Up Capture | 233% | 597% | 672% | 919% | 2990% | 7917% |
| Bmk +ve Days | 11 | 22 | 35 | 67 | 138 | 427 |
| Stock +ve Days | 12 | 24 | 36 | 73 | 151 | 422 |
| Down Capture | 420% | 320% | 313% | 213% | 164% | 111% |
| Bmk -ve Days | 11 | 21 | 28 | 59 | 114 | 326 |
| Stock -ve Days | 10 | 19 | 27 | 53 | 101 | 330 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with WDC | |
|---|---|---|---|---|
| WDC | 671.1% | 77.3% | 2.97 | - |
| Sector ETF (XLK) | 33.2% | 25.6% | 1.08 | 64.5% |
| Equity (SPY) | 18.8% | 12.9% | 1.07 | 51.1% |
| Gold (GLD) | 23.6% | 28.1% | 0.74 | 31.2% |
| Commodities (DBC) | 30.2% | 19.7% | 1.22 | 5.6% |
| Real Estate (VNQ) | 13.7% | 13.9% | 0.69 | -12.5% |
| Bitcoin (BTCUSD) | -46.8% | 43.0% | -1.34 | 24.7% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with WDC | |
|---|---|---|---|---|
| WDC | 63.0% | 52.0% | 1.13 | - |
| Sector ETF (XLK) | 18.7% | 25.7% | 0.65 | 61.0% |
| Equity (SPY) | 12.6% | 17.1% | 0.56 | 54.6% |
| Gold (GLD) | 17.1% | 18.5% | 0.75 | 20.0% |
| Commodities (DBC) | 9.0% | 19.5% | 0.35 | 13.9% |
| Real Estate (VNQ) | 2.5% | 18.9% | 0.03 | 24.8% |
| Bitcoin (BTCUSD) | 13.4% | 53.3% | 0.43 | 21.4% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with WDC | |
|---|---|---|---|---|
| WDC | 32.0% | 50.0% | 0.75 | - |
| Sector ETF (XLK) | 23.9% | 24.9% | 0.87 | 59.8% |
| Equity (SPY) | 15.0% | 17.9% | 0.71 | 57.0% |
| Gold (GLD) | 11.3% | 16.1% | 0.57 | 13.8% |
| Commodities (DBC) | 7.3% | 18.0% | 0.32 | 20.9% |
| Real Estate (VNQ) | 4.9% | 20.7% | 0.20 | 35.2% |
| Bitcoin (BTCUSD) | 57.6% | 66.2% | 0.98 | 15.5% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 6/3/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 4/30/2026 | -0.7% | 6.8% | 25.7% |
| 1/29/2026 | -10.1% | -6.5% | -3.0% |
| 10/30/2025 | 8.7% | 18.4% | 15.8% |
| 7/30/2025 | 10.2% | 3.3% | 14.9% |
| 4/30/2025 | 8.0% | 9.0% | 29.4% |
| 1/29/2025 | 4.7% | 3.1% | 4.2% |
| 10/24/2024 | 4.7% | -1.5% | 0.2% |
| 7/31/2024 | -9.7% | -16.1% | -6.0% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 11 | 12 | 15 |
| # Negative | 12 | 11 | 8 |
| Median Positive | 4.7% | 7.1% | 15.8% |
| Median Negative | -3.1% | -2.9% | -5.4% |
| Max Positive | 10.2% | 18.4% | 37.2% |
| Max Negative | -10.1% | -16.1% | -16.5% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 4/30/2026 | -0.7% | 6.8% | 25.7% |
| 1/29/2026 | -10.1% | -6.5% | -3.0% |
| 10/30/2025 | 8.7% | 18.4% | 15.8% |
| 7/30/2025 | 10.2% | 3.3% | 14.9% |
| 4/30/2025 | 8.0% | 9.0% | 29.4% |
| 1/29/2025 | 4.7% | 3.1% | 4.2% |
| 10/24/2024 | 4.7% | -1.5% | 0.2% |
| 7/31/2024 | -9.7% | -16.1% | -6.0% |
| 4/25/2024 | 2.8% | 0.4% | 7.7% |
| 1/25/2024 | -3.5% | -4.9% | -5.4% |
| 10/30/2023 | 7.3% | 10.4% | 20.3% |
| 7/31/2023 | 0.7% | 2.2% | -2.4% |
| 5/8/2023 | -1.7% | 7.5% | 17.1% |
| 1/31/2023 | -1.4% | -2.0% | -12.7% |
| 10/27/2022 | -2.7% | -2.0% | 5.8% |
| 8/5/2022 | -5.7% | -1.7% | -16.5% |
| 4/28/2022 | 0.9% | 16.3% | 18.3% |
| 1/27/2022 | -7.3% | -2.9% | -5.4% |
| 10/28/2021 | -8.7% | -3.9% | 3.0% |
| 8/4/2021 | 3.3% | 2.7% | -5.1% |
| 4/29/2021 | -0.7% | -2.1% | 5.8% |
| 1/28/2021 | 7.2% | 12.6% | 37.2% |
| 10/28/2020 | -1.8% | -3.3% | 18.1% |
| SUMMARY STATS | |||
| # Positive | 11 | 12 | 15 |
| # Negative | 12 | 11 | 8 |
| Median Positive | 4.7% | 7.1% | 15.8% |
| Median Negative | -3.1% | -2.9% | -5.4% |
| Max Positive | 10.2% | 18.4% | 37.2% |
| Max Negative | -10.1% | -16.1% | -16.5% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 05/01/2026 | 10-Q |
| 12/31/2025 | 01/30/2026 | 10-Q |
| 09/30/2025 | 10/31/2025 | 10-Q |
| 06/30/2025 | 08/14/2025 | 10-K |
| 03/31/2025 | 05/02/2025 | 10-Q |
| 12/31/2024 | 01/31/2025 | 10-Q |
| 09/30/2024 | 10/31/2024 | 10-Q |
| 06/30/2024 | 08/20/2024 | 10-K |
| 03/31/2024 | 04/30/2024 | 10-Q |
| 12/31/2023 | 02/12/2024 | 10-Q |
| 09/30/2023 | 11/07/2023 | 10-Q |
| 06/30/2023 | 08/22/2023 | 10-K |
| 03/31/2023 | 05/10/2023 | 10-Q |
| 12/31/2022 | 02/03/2023 | 10-Q |
| 09/30/2022 | 11/02/2022 | 10-Q |
| 06/30/2022 | 08/25/2022 | 10-K |
| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 05/01/2026 | 10-Q |
| 12/31/2025 | 01/30/2026 | 10-Q |
| 09/30/2025 | 10/31/2025 | 10-Q |
| 06/30/2025 | 08/14/2025 | 10-K |
| 03/31/2025 | 05/02/2025 | 10-Q |
| 12/31/2024 | 01/31/2025 | 10-Q |
| 09/30/2024 | 10/31/2024 | 10-Q |
| 06/30/2024 | 08/20/2024 | 10-K |
| 03/31/2024 | 04/30/2024 | 10-Q |
| 12/31/2023 | 02/12/2024 | 10-Q |
| 09/30/2023 | 11/07/2023 | 10-Q |
| 06/30/2023 | 08/22/2023 | 10-K |
| 03/31/2023 | 05/10/2023 | 10-Q |
| 12/31/2022 | 02/03/2023 | 10-Q |
| 09/30/2022 | 11/02/2022 | 10-Q |
| 06/30/2022 | 08/25/2022 | 10-K |
| 03/31/2022 | 05/04/2022 | 10-Q |
| 12/31/2021 | 02/03/2022 | 10-Q |
| 09/30/2021 | 11/04/2021 | 10-Q |
| 06/30/2021 | 08/27/2021 | 10-K |
| 03/31/2021 | 05/06/2021 | 10-Q |
| 12/31/2020 | 02/09/2021 | 10-Q |
| 09/30/2020 | 11/06/2020 | 10-Q |
| 06/30/2020 | 08/28/2020 | 10-K |
| 03/31/2020 | 05/08/2020 | 10-Q |
| 12/31/2019 | 02/11/2020 | 10-Q |
| 09/30/2019 | 11/12/2019 | 10-Q |
| 06/30/2019 | 08/27/2019 | 10-K |
Recent Forward Guidance
Updated 7/8/2026Latest: Q3 2026 Earnings Reported 4/30/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q4 2026 Revenue | 3.55 Bil | 3.65 Bil | 3.75 Bil | 14.1% | Higher New | Guidance: 3.20 Bil for Q3 2026 | |
| Q4 2026 Gross margin | 51.0% | 51.5% | 52.0% | 4.0% | Higher New | Guidance: 47.5% for Q3 2026 | |
| Q4 2026 Operating expenses | 385.00 Mil | 390.00 Mil | 395.00 Mil | 1.3% | Higher New | Guidance: 385.00 Mil for Q3 2026 | |
| Q4 2026 Diluted net income per common share | 3.1 | 3.25 | 3.4 | 41.3% | Higher New | Guidance: 2.3 for Q3 2026 | |
Prior: Q2 2026 Earnings Reported 1/29/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q3 2026 Revenue | 3.10 Bil | 3.20 Bil | 10.3% | Higher New | Guidance: 2.90 Bil for Q2 2026 | ||
| Q3 2026 Gross margin | 47.0% | 47.5% | 48.0% | 3.0% | Higher New | Guidance: 44.5% for Q2 2026 | |
| Q3 2026 Operating expenses | 380.00 Mil | 385.00 Mil | 390.00 Mil | 4.1% | Higher New | Guidance: 370.00 Mil for Q2 2026 | |
| Q3 2026 Diluted net income per common share | 2.15 | 2.3 | 2.45 | 22.3% | Higher New | Guidance: 1.88 for Q2 2026 | |
Q1 2026 Earnings Reported 10/30/2025
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q2 2026 Revenue | 2.80 Bil | 2.90 Bil | 3.00 Bil | 7.4% | Higher New | Guidance: 2.70 Bil for Q1 2026 | |
| Q2 2026 Gross margin | 44.0% | 44.5% | 45.0% | 3.0% | Higher New | Guidance: 41.5% for Q1 2026 | |
| Q2 2026 Operating expenses | 365.00 Mil | 370.00 Mil | 375.00 Mil | -1.3% | Lower New | Guidance: 375.00 Mil for Q1 2026 | |
| Q2 2026 Diluted net income per common share | 1.73 | 1.88 | 2.03 | 22.1% | Higher New | Guidance: 1.54 for Q1 2026 | |
Insider Activity
Updated 7/29/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Cole, Martin I | Direct | Sell | 7292026 | 462.77 | 192 | 88,852 | 9,918,584 | Form | |
| 2 | Cole, Martin I | Direct | Sell | 7292026 | 448.66 | 3,808 | 1,708,505 | 9,702,315 | Form | |
| 3 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 7212026 | 529.63 | 808 | 427,941 | 60,663,291 | Form |
| 4 | Cole, Martin I | Direct | Sell | 6112026 | 536.01 | 720 | 385,924 | 13,632,236 | Form | |
| 5 | Cole, Martin I | Direct | Sell | 6112026 | 511.16 | 3,280 | 1,676,600 | 13,368,333 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Cole, Martin I | Direct | Sell | 7292026 | 462.77 | 192 | 88,852 | 9,918,584 | Form | |
| 2 | Cole, Martin I | Direct | Sell | 7292026 | 448.66 | 3,808 | 1,708,505 | 9,702,315 | Form | |
| 3 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 7212026 | 529.63 | 808 | 427,941 | 60,663,291 | Form |
| 4 | Cole, Martin I | Direct | Sell | 6112026 | 536.01 | 720 | 385,924 | 13,632,236 | Form | |
| 5 | Cole, Martin I | Direct | Sell | 6112026 | 511.16 | 3,280 | 1,676,600 | 13,368,333 | Form | |
| 6 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 6052026 | 545.60 | 432 | 235,699 | 63,640,421 | Form |
| 7 | Gubbi, Vidyadhara K | Chief of Global Operations | Direct | Sell | 6022026 | 556.24 | 2,475 | 1,376,694 | 47,366,061 | Form |
| 8 | Kiddoo, Bruce E | Direct | Sell | 5292026 | 528.52 | 750 | 396,390 | 2,062,814 | Form | |
| 9 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 5272026 | 539.63 | 214 | 115,481 | 63,221,432 | Form |
| 10 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 5272026 | 488.61 | 308 | 150,492 | 57,721,942 | Form |
| 11 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 5222026 | 458.87 | 106 | 48,640 | 54,349,939 | Form |
| 12 | Davis, Brian Scott | Chief Sales & Mrktng Officer | Direct | Sell | 5122026 | 500.69 | 10,000 | 5,006,895 | 52,854,790 | Form |
| 13 | Gubbi, Vidyadhara K | Chief of Global Operations | Direct | Sell | 5052026 | 443.19 | 4,674 | 2,071,447 | 39,904,821 | Form |
| 14 | Tan, Irving | Chief Executive Officer | Direct | Sell | 5052026 | 411.84 | 20,000 | 8,236,864 | 246,344,024 | Form |
| 15 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 4222026 | 377.09 | 363 | 136,884 | 45,259,473 | Form |
| 16 | Gubbi, Vidyadhara K | Chief of Global Operations | Direct | Sell | 3102026 | 255.32 | 8,518 | 2,174,858 | 25,347,645 | Form |
| 17 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 3052026 | 268.27 | 9,324 | 2,501,382 | 32,644,052 | Form |
| 18 | Gubbi, Vidyadhara K | Chief of Global Operations | Direct | Sell | 3052026 | 270.31 | 10,148 | 2,743,110 | 29,137,840 | Form |
| 19 | Cole, Martin I | Direct | Sell | 3032026 | 271.67 | 6,000 | 1,630,002 | 7,995,974 | Form | |
| 20 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 2272026 | 286.11 | 214 | 61,228 | 38,276,082 | Form |
| 21 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 2242026 | 281.70 | 308 | 86,764 | 37,961,610 | Form |
| 22 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 2242026 | 283.83 | 130 | 36,898 | 38,336,067 | Form |
| 23 | Davis, Brian Scott | Chief Sales & Mrktng Officer | Direct | Sell | 2192026 | 279.16 | 10,000 | 2,791,603 | 33,999,491 | Form |
| 24 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 2062026 | 270.49 | 6,780 | 1,833,922 | 36,932,164 | Form |
| 25 | Massengill, Matthew E | Family Trust | Sell | 2062026 | 260.43 | 36,926 | Form | |||
| 26 | Tan, Irving | Chief Executive Officer | Direct | Sell | 2042026 | 255.44 | 20,000 | 5,108,831 | 159,289,777 | Form |
| 27 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 1212026 | 229.00 | 447 | 102,363 | 32,819,822 | Form |
| 28 | Gubbi, Vidyadhara K | Chief of Global Operations | Direct | Sell | 12082025 | 168.14 | 8,943 | 1,503,713 | 21,331,442 | Form |
| 29 | Gubbi, Vidyadhara K | Chief of Global Operations | Direct | Sell | 12082025 | 159.94 | 13,877 | 2,219,510 | 21,721,189 | Form |
| 30 | Alexy, Kimberly | Direct | Sell | 12082025 | 160.08 | 2,000 | 320,165 | 253,731 | Form | |
| 31 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 12032025 | 160.57 | 2,801 | 449,752 | 23,217,519 | Form |
| 32 | Cole, Martin I | Direct | Sell | 12032025 | 162.62 | 6,000 | 975,696 | 5,761,973 | Form | |
| 33 | Oulman, Roxanne | Direct | Sell | 11262025 | 154.42 | 1,800 | 277,956 | 596,524 | Form | |
| 34 | Alexy, Kimberly | Direct | Sell | 11262025 | 154.00 | 1,768 | 272,272 | 552,090 | Form | |
| 35 | Cole, Martin I | Direct | Sell | 11062025 | 161.32 | 10,000 | 1,613,212 | 6,372,834 | Form | |
| 36 | Tan, Irving | Chief Executive Officer | Direct | Sell | 11052025 | 150.69 | 20,000 | 3,013,784 | 97,264,908 | Form |
| 37 | Gubbi, Vidyadhara K | Chief of Global Operations | Direct | Sell | 9052025 | 90.29 | 11,343 | 1,024,162 | 13,687,633 | Form |
| 38 | Zamiska, Gene M | SVP & Princ. Acctg Officer | Direct | Sell | 8282025 | 80.90 | 353 | 28,558 | 2,218,682 | Form |
| 39 | Zamiska, Gene M | SVP & Princ. Acctg Officer | Direct | Sell | 8272025 | 79.10 | 814 | 64,387 | 2,224,450 | Form |
| 40 | Zamiska, Gene M | SVP, Global Accounting & Chief | Direct | Sell | 8252025 | 74.78 | 1,828 | 136,698 | 2,223,359 | Form |
| 41 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 8252025 | 74.78 | 14,067 | 1,051,930 | 10,121,548 | Form |
| 42 | Zamiska, Gene M | SVP, Global Accounting & Chief | Direct | Sell | 8252025 | 75.68 | 3,160 | 239,149 | 2,388,461 | Form |
| 43 | Tan, Irving | Chief Executive Officer | Direct | Sell | 8212025 | 75.90 | 8,621 | 654,334 | 45,148,052 | Form |
| 44 | Gubbi, Vidyadhara K | Chief of Global Ops | Direct | Sell | 8132025 | 76.26 | 5,597 | 426,827 | 11,795,821 | Form |
| 45 | Gubbi, Vidyadhara K | Chief of Global Ops | Direct | Sell | 8132025 | 74.88 | 3,947 | 295,532 | 12,000,666 | Form |
Investor Activity (13F)
Updated Aug 3, 2026Active managers (13F portfolio over $250M, at least 3 holdings) with a position over $5M that is either over 10% of their portfolio or held in a concentrated book of 50 or fewer total positions. Index/ETF, sovereign, bank, community-bank and charitable/donor-advised filers are excluded.
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | Filing |
|---|---|---|---|---|---|
| Whitebox Advisors LLC | $1.5 Bil | 21.1% | 545 | Hold | 13F |
| Boussard & Gavaudan Investment Management LLP | $186.1 Mil | 17.9% | 84 | TRIM -6.9% | 13F |
| Maple Rock Capital Partners Inc. | $378.8 Mil | 12.3% | 44 | TRIM -41.2% | 13F |
| Amanah Holdings Trust | $85.2 Mil | 9.4% | 20 | Hold | 13F |
| Talos Eurisko Asset Management LP | $47.0 Mil | 8.0% | 23 | TRIM -16.0% | 13F |
| Trivest Advisors Ltd | $93.3 Mil | 6.7% | 29 | TRIM -60.6% | 13F |
| Rivermont Capital Management LP | $31.3 Mil | 6.6% | 20 | TRIM -25.0% | 13F |
| Alta Park Capital, LP | $34.2 Mil | 5.5% | 24 | TRIM -67.8% | 13F |
| Anther Capital Ltd | $192.7 Mil | 5.0% | 31 | New | 13F |
| Castle Hook Partners LP | $237.7 Mil | 4.8% | 44 | TRIM -33.7% | 13F |
| WT Asset Management Ltd | $220.9 Mil | 4.6% | 32 | ADD +98.5% | 13F |
| Tyro Capital Management LLC | $16.1 Mil | 4.1% | 23 | New | 13F |
| Permit Capital, LLC | $11.1 Mil | 3.8% | 19 | TRIM -48.5% | 13F |
| Attestor Capital Ltd | $14.3 Mil | 3.8% | 9 | ADD +139.8% | 13F |
| Atalan Capital Partners, LP | $36.4 Mil | 3.4% | 10 | TRIM -80.9% | 13F |
| XN LP | $74.5 Mil | 2.7% | 23 | New | 13F |
| UNICOM Systems, Inc. | $24.5 Mil | 2.5% | 32 | New | 13F |
| Avala Global LP | $51.1 Mil | 2.5% | 22 | Hold | 13F |
| Jericho Capital Asset Management L.P. | $157.3 Mil | 2.3% | 23 | New | 13F |
| Soroban Capital Partners LP | $310.1 Mil | 2.2% | 27 | Hold | 13F |
| Hawk Ridge Capital Management LP | $56.6 Mil | 2.1% | 48 | TRIM -35.7% | 13F |
| Park West Asset Management LLC | $20.3 Mil | 1.8% | 48 | TRIM -32.7% | 13F |
| Melqart Asset Management (UK) Ltd | $17.4 Mil | 1.7% | 41 | TRIM -35.4% | 13F |
| Whale Rock Capital Management LLC | $111.4 Mil | 1.4% | 35 | New | 13F |
| Oribel Capital Management, LP | $7.6 Mil | 1.2% | 41 | New | 13F |
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | Filing |
|---|---|---|---|---|---|
| Anther Capital Ltd | $192.7 Mil | 5.0% | 31 | New | 13F |
| Jericho Capital Asset Management L.P. | $157.3 Mil | 2.3% | 23 | New | 13F |
| Whale Rock Capital Management LLC | $111.4 Mil | 1.4% | 35 | New | 13F |
| XN LP | $74.5 Mil | 2.7% | 23 | New | 13F |
| UNICOM Systems, Inc. | $24.5 Mil | 2.5% | 32 | New | 13F |
| Tyro Capital Management LLC | $16.1 Mil | 4.1% | 23 | New | 13F |
| Oribel Capital Management, LP | $7.6 Mil | 1.2% | 41 | New | 13F |
| Attestor Capital Ltd | $14.3 Mil | 3.8% | 9 | ADD +139.8% | 13F |
| WT Asset Management Ltd | $220.9 Mil | 4.6% | 32 | ADD +98.5% | 13F |
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | As Of | Filing |
|---|---|---|---|---|---|---|
| Wolf Hill Capital Management, LP | $101.7 Mil | 11.8% | 22 | Exited | Dec 31, 2025 | 13F |
| CloudAlpha Capital Management Limited/Hong Kong | $20.9 Mil | 1.9% | 43 | Exited | Dec 31, 2025 | 13F |
| MIG Capital, LLC | $11.6 Mil | 2.0% | 43 | Exited | Dec 31, 2025 | 13F |
| Atalan Capital Partners, LP | $36.4 Mil | 3.4% | 10 | TRIM -80.9% | Mar 31, 2026 | 13F |
| Alta Park Capital, LP | $34.2 Mil | 5.5% | 24 | TRIM -67.8% | Mar 31, 2026 | 13F |
| Trivest Advisors Ltd | $93.3 Mil | 6.7% | 29 | TRIM -60.6% | Mar 31, 2026 | 13F |
| Permit Capital, LLC | $11.1 Mil | 3.8% | 19 | TRIM -48.5% | Mar 31, 2026 | 13F |
| Maple Rock Capital Partners Inc. | $378.8 Mil | 12.3% | 44 | TRIM -41.2% | Mar 31, 2026 | 13F |
| Hawk Ridge Capital Management LP | $56.6 Mil | 2.1% | 48 | TRIM -35.7% | Mar 31, 2026 | 13F |
| Melqart Asset Management (UK) Ltd | $17.4 Mil | 1.7% | 41 | TRIM -35.4% | Mar 31, 2026 | 13F |
| Castle Hook Partners LP | $237.7 Mil | 4.8% | 44 | TRIM -33.7% | Mar 31, 2026 | 13F |
| Park West Asset Management LLC | $20.3 Mil | 1.8% | 48 | TRIM -32.7% | Mar 31, 2026 | 13F |
| Rivermont Capital Management LP | $31.3 Mil | 6.6% | 20 | TRIM -25.0% | Mar 31, 2026 | 13F |
| Talos Eurisko Asset Management LP | $47.0 Mil | 8.0% | 23 | TRIM -16.0% | Mar 31, 2026 | 13F |
| Boussard & Gavaudan Investment Management LLP | $186.1 Mil | 17.9% | 84 | TRIM -6.9% | Mar 31, 2026 | 13F |
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | Filing |
|---|---|---|---|---|---|
| Whitebox Advisors LLC | $1.5 Bil | 21.1% | 545 | Hold | 13F |
| Maple Rock Capital Partners Inc. | $378.8 Mil | 12.3% | 44 | TRIM -41.2% | 13F |
| Soroban Capital Partners LP | $310.1 Mil | 2.2% | 27 | Hold | 13F |
| Castle Hook Partners LP | $237.7 Mil | 4.8% | 44 | TRIM -33.7% | 13F |
| WT Asset Management Ltd | $220.9 Mil | 4.6% | 32 | ADD +98.5% | 13F |
| Anther Capital Ltd | $192.7 Mil | 5.0% | 31 | New | 13F |
| Boussard & Gavaudan Investment Management LLP | $186.1 Mil | 17.9% | 84 | TRIM -6.9% | 13F |
| Jericho Capital Asset Management L.P. | $157.3 Mil | 2.3% | 23 | New | 13F |
| Whale Rock Capital Management LLC | $111.4 Mil | 1.4% | 35 | New | 13F |
| Trivest Advisors Ltd | $93.3 Mil | 6.7% | 29 | TRIM -60.6% | 13F |
| Amanah Holdings Trust | $85.2 Mil | 9.4% | 20 | Hold | 13F |
| XN LP | $74.5 Mil | 2.7% | 23 | New | 13F |
| Hawk Ridge Capital Management LP | $56.6 Mil | 2.1% | 48 | TRIM -35.7% | 13F |
| Avala Global LP | $51.1 Mil | 2.5% | 22 | Hold | 13F |
| Talos Eurisko Asset Management LP | $47.0 Mil | 8.0% | 23 | TRIM -16.0% | 13F |
| Atalan Capital Partners, LP | $36.4 Mil | 3.4% | 10 | TRIM -80.9% | 13F |
| Alta Park Capital, LP | $34.2 Mil | 5.5% | 24 | TRIM -67.8% | 13F |
| Rivermont Capital Management LP | $31.3 Mil | 6.6% | 20 | TRIM -25.0% | 13F |
| UNICOM Systems, Inc. | $24.5 Mil | 2.5% | 32 | New | 13F |
| Park West Asset Management LLC | $20.3 Mil | 1.8% | 48 | TRIM -32.7% | 13F |
| Melqart Asset Management (UK) Ltd | $17.4 Mil | 1.7% | 41 | TRIM -35.4% | 13F |
| Tyro Capital Management LLC | $16.1 Mil | 4.1% | 23 | New | 13F |
| Attestor Capital Ltd | $14.3 Mil | 3.8% | 9 | ADD +139.8% | 13F |
| Permit Capital, LLC | $11.1 Mil | 3.8% | 19 | TRIM -48.5% | 13F |
| Oribel Capital Management, LP | $7.6 Mil | 1.2% | 41 | New | 13F |
WDC Trade Sentinel
High Conviction
CONVICTION RATIONALE
Conviction is high following the company's strategic focus on hard disk drives for the AI era. Structural demand is translating into accelerating revenue growth and expanding margins. Multi-year customer agreements extending to '29 provide unusually strong visibility, de-risking the near-term outlook and supporting the case for a durable upcycle.
STOCK ARCHETYPE
Capital Goods / Hardware(Number of Exabytes Sold) x (Price per Exabyte) Mix shift to higher-capacity, higher-margin drives (e.g., UltraSMR-enabled products) and disciplined pricing in a supply-constrained market.
INVESTMENT THESIS
Evidence points to a structural shift, with multi-year agreements locking in demand and pricing.
- Long-term agreements with customers now extend into calendar years '28 and '29.
- Latest-quarter revenue growth accelerated to 45.5% year-over-year.
- Q4 revenue is guided to $3.65 billion at the midpoint, representing 40% YoY growth.
- Management has no plans to increase unit capacity, supporting a tight supply environment.
PRIMARY RISK
A primary competitor claims to be ahead on next-generation HAMR drives, while WDC's revenue is highly concentrated, with its top 10 customers accounting for 71% of revenue.
- In Q3 FY2026, three customers accounted for 17%, 15%, and 11% of net revenue.
- A peer company has shipped millions of HAMR-based drives.
- The same peer has two of the world's largest cloud providers qualified on its latest platform.
- The stock is trading -30.3% away from its 52-week high, indicating market concern.
| KPI | Status | Rationale |
|---|---|---|
| Exabytes Shipped | 222 exabytes in Q3 FY2026 - Accelerating | The year-over-year growth in exabytes shipped accelerated significantly to 34% in the latest quarter from 22% in the prior quarter, indicating strengthening demand momentum driven by AI workloads. |
| Average Selling Price (ASP) per Exabyte Growth | Up 9% year-over-year in Q3 FY2026 - Accelerating | The rate of price increases has accelerated sequentially, moving from low-single-digits in prior quarters to 9% in the latest period. Management attributes this to an improved pricing environment and a mix shift to higher-capacity drives. |
| Cloud Revenue as % of Total | 89% (Q3 FY2026) | Measures the company's concentration and success in the highest-growth end market. A high percentage indicates strong alignment with data center and AI-driven demand. |
| Latest-Quarter Revenue Growth (YoY) | 45.5% (Q3 FY2026) | Shows the top-line growth momentum, reflecting the balance of volume, mix, and pricing. Strong growth indicates a favorable supply/demand environment. |
AI Supercycle vs. Hardware Peak
BULL VIEW
Multi-year contracts extending into '29 and a 25%+ market CAGR signal a durable upcycle, justifying current 50.2% gross margins.
CORE TENSION
Can WDC's locked-in demand and current margin strength (TTM GM 45.4%) bridge the gap to its own successful HAMR ramp?
PREVAILING SENTIMENT
Latest evidence favors the bull case; WDC is accelerating its HAMR qualifications with 4 customers and extending customer agreements.
BEAR VIEW
Peer Seagate is shipping millions of next-gen HAMR drives, potentially eroding WDC's current margin lead as the market transitions.
| Timeline | Event & Metric To Watch |
|---|---|
by the end of 2026 | Failure to Monetize Asset Watch: Company announcements regarding the disposition of the remaining Sandisk shares. |
8/5/2026 | Heightened Stock Volatility Watch: The stock's price reaction to the upcoming earnings report and forward guidance. |
8/5/2026 | Intensifying Peer Competition Watch: Commentary on market share, pricing, and HAMR progress relative to peers during the earnings call. |
8/5/2026 | Company Reports Quarterly Results Watch: Western Digital is scheduled to report Q4 and full-year fiscal 2026 earnings. |
9/1/2026 | Cloud Demand Slowdown Watch: Data center and cloud segment results from peers HPE, NTAP, MU, and DELL for signs of spending changes. |
9/2/2026 | Peer Reports Earnings Watch: Peer NetApp (NTAP) is scheduled to report earnings. |
9/21/2026 | Peer Reports Earnings Watch: Peer Micron Technology (MU) is scheduled to report earnings. |
On or after November 15, 2026 | Convertible Notes Redemption Option Watch: The company may redeem its convertible notes due 2028 for cash. |
second half of calendar year 2026 | New ePMR Drive Production Watch: The company plans to start volume production of its 40-terabyte ePMR drives. |
| Date | Event | Stock Impact |
|---|---|---|
2026-07-13 | Sets Q4 Earnings Date Details: The company announced it plans to report fourth quarter and fiscal year 2026 financial results after the market closes on Wednesday, August 5, 2026. | -3.3% $582.59 -> $563.32 |
2026-06-23 | Positive AI Narrative Builds Details: Press reports in June highlighted the company as a pure-play HDD leader benefiting from AI-driven demand and long-term supply contracts, with one suggesting it could be 'The Next Micron'. | -12.1% $732.62 -> $643.83 |
2026-05-06 | Equity-for-Equity Exchange Details: The company announced it would receive 1,865,801 of its own shares in exchange for shares of Sandisk common stock. | -0.3% $465.14 -> $463.79 |
2026-04-30 | Raises Q4 Guidance Details: Alongside Q3 results, management issued higher new guidance for Q4 2026 revenue, gross margin, and diluted net income per share, which had a new midpoint of $3.25. | +4.5% $412.65 -> $431.41 |
2026-04-30 | Reports Strong Q3 Results Details: The company reported Q3 revenue of $3.3 billion, up 48% year-over-year, with gross margin exceeding 50%. The stock had a two-day positive reaction of 5.0%. | +4.5% $412.65 -> $431.41 |
2026-02-03 | Innovation Day and Buyback Details: At its Innovation Day, the company unveiled a new storage roadmap for the AI era and its Board authorized an additional $4.0 billion for share repurchases. | -0.3% $270.03 -> $269.21 |
2026-01-29 | Reports Q2 FY26 Results Details: The company reported fiscal Q2 revenue of $3 billion, up 48% year-over-year. The stock had a two-day negative reaction of -11.0%. | -10.5% $279.49 -> $250.05 |
Position Sizing
1% - 2%
MINIMAL POSITION
Sizing is volatility-based: WDC trades at roughly 97% annualized options-implied volatility versus about 15% for the S&P 500 (6.5x the market), around the 93rd percentile of its own trailing year. A 1% - 2% position keeps a single-name swing of that size within a diversified portfolio's risk budget.
Diversification Alternatives
STX - Seagate Technology
Direct CompetitorSeagate offers a similar pure-play exposure to the HDD market and claims a lead in shipping next-generation HAMR technology, which could provide an edge if its ramp proves more successful.
MU - Micron Technology
Broader AI InfrastructureMicron provides exposure to the memory (DRAM and NAND) side of the AI infrastructure build-out, a different but complementary part of the technology stack compared to WDC's mass storage focus.
WDC is a pure-play capital goods supplier for the AI data economy, providing the fundamental, most cost-effective building blocks (high-capacity HDDs) for the world's data infrastructure.
Following the spin-off of its Flash business, WDC is now a focused HDD provider strategically partnered with the world's largest cloud companies. The explosion of data from AI is creating a structural, multi-year demand cycle for mass storage, where HDDs have a durable TCO advantage. The company is capitalizing on this by locking in long-term demand, driving a favorable product mix, and expanding margins in a supply-constrained market.
News of new or extended long-term agreements with hyperscalers, faster-than-expected qualification of next-generation HAMR or ePMR drives, and sustained high-single-digit price-per-exabyte increases.
Reports of a significant slowdown in cloud provider CapEx, a competitor achieving a major, unexpected technology breakthrough that leapfrogs WDC's roadmap, or a rapid architectural shift in data centers away from HDDs for mass storage.
Short-term fluctuations in the Client or Consumer segments, or minor stock price movements of its former Flash business, Sandisk.
Repricing Catalyst
The market's increasing appreciation for the structural and durable nature of AI-driven storage demand, which is translating into strong revenue growth, significant margin expansion, and enhanced long-term visibility through customer agreements.
Hard disk drives (HDD)
$9.5B TTM (100% of Total)What It Is
Sells HDDs for three key end markets: Cloud (high-capacity enterprise drives for public/private cloud data centers), Client (HDDs for OEM and channel customers for desktops and notebooks), and Consumer (external storage products for retail).
Who Pays & How
Hyperscale cloud providers and enterprise customers are the primary payers, purchasing HDDs to build out data centers that support AI and cloud workloads. They choose WDC for its ability to deliver reliable, high-capacity drives at scale, which provide a low total cost of ownership (TCO) for mass data storage.
Competition
Western Digital — Investor Video Playlist
Industry Resources
| Information Technology Resources |
| TechCrunch |
| Wired |
| CIO |
| MIT Technology Review |
| Gartner Insights |
| Ars Technica |
| Technology Hardware, Storage & Peripherals Resources |
| The Verge |
| TechRadar |
| Tom’s Hardware |
| PCMag |
| CNET |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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