Western Digital (WDC)
Market Price (10/30/2026): $379.92 | Market Cap: $142.2 BilInvestor Relations Sector: Information Technology | Industry: Technology Hardware, Storage & Peripherals
Western Digital (WDC)
Market Price (10/30/2026): $379.92Market Cap: $142.2 BilSector: Information TechnologyIndustry: Technology Hardware, Storage & Peripherals
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 7.0% Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 43% Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 41% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 34%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 30%, CFO LTM is 4.9 Bil, FCF LTM is 4.3 Bil Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -42% Stock buyback supportStock Buyback 3Y Total is 3.7 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 significantly12M Rtn12 month market price return is 180% Key risksWDC key risks include [1] heavy revenue concentration with a few large, Show more. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 7.0% |
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 43% |
| Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 41% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 34%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 30%, CFO LTM is 4.9 Bil, FCF LTM is 4.3 Bil |
| Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -42% |
| Stock buyback supportStock Buyback 3Y Total is 3.7 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 significantly12M Rtn12 month market price return is 180% |
| 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 lost about 40% since 6/30/2026 because of the following key factors:
1. Significant Decline in Analyst Price Targets and Increased Skepticism. Several major analyst firms reduced their price targets for Western Digital during the period, notably in fiscal Q1 2027 (period ending October 2, 2026). For instance, Wells Fargo cut its price objective from $730.00 to $450.00 on October 16, 2026, and UBS lowered its target from $525.00 to $470.00 on October 12, 2026. This reflected a more cautious outlook on the stock's future performance and contributed to investor uncertainty.
2. Heightened Competitive Concerns and Industry Profitability Gap. The stock faced pressure due to competitive dynamics within the hard-drive sector. Rival Seagate's reported exabyte growth of 43% in fiscal Q4 2026 outpaced Western Digital's 23% for the same period. Furthermore, Seagate provided approximately 200 basis points better gross margin guidance for its September quarter, highlighting a perceived profitability gap and raising concerns about Western Digital's relative position.
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Western Digital (WDC) stock has lost about 40% since 6/30/2026 because of the following key factors:
1. Significant Decline in Analyst Price Targets and Increased Skepticism. Several major analyst firms reduced their price targets for Western Digital during the period, notably in fiscal Q1 2027 (period ending October 2, 2026). For instance, Wells Fargo cut its price objective from $730.00 to $450.00 on October 16, 2026, and UBS lowered its target from $525.00 to $470.00 on October 12, 2026. This reflected a more cautious outlook on the stock's future performance and contributed to investor uncertainty.
2. Heightened Competitive Concerns and Industry Profitability Gap. The stock faced pressure due to competitive dynamics within the hard-drive sector. Rival Seagate's reported exabyte growth of 43% in fiscal Q4 2026 outpaced Western Digital's 23% for the same period. Furthermore, Seagate provided approximately 200 basis points better gross margin guidance for its September quarter, highlighting a perceived profitability gap and raising concerns about Western Digital's relative position.
3. Investor Concerns Over "Peak Cycle" and Rising Input Costs. The stock experienced a significant sell-off, dropping over 50% from its June 18, 2026, peak of approximately $746 to around $353 by October 24, 2026. This occurred even after Western Digital reported strong fiscal Q1 2027 results, with revenue of $4.38 billion (up 55% year-over-year) and non-GAAP EPS of $4.64 (up 161%). This indicates that investors looked beyond the strong current performance, focusing on concerns that the industry might be approaching a "peak cycle" and potential future pressure from rising DRAM/NAND input costs, as highlighted by CFO commentary that reportedly "spooked Wall Street".
4. Substantial Insider Selling Activity. Over the 90 days leading up to October 26, 2026, Western Digital insiders sold approximately $11.3 million worth of stock. This significant volume of insider selling, exceeding the specified threshold of USD 5 million, can signal a lack of confidence from company executives and directors, contributing to negative market sentiment.
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Stock Movement Drivers
Fundamental Drivers
The -38.1% change in WDC stock from 6/30/2026 to 10/29/2026 was primarily driven by a -56.6% change in the company's P/E Multiple.| (LTM values as of) | 6302026 | 10292026 | Change |
|---|---|---|---|
| Stock Price ($) | 638.51 | 395.41 | -38.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 11,777 | 14,482 | 23.0% |
| Net Income Margin (%) | 55.1% | 68.3% | 24.1% |
| P/E Multiple | 33.7 | 14.6 | -56.6% |
| Shares Outstanding (Mil) | 342 | 366 | -6.6% |
| Cumulative Contribution | -38.1% |
Market Drivers
6/30/2026 to 10/29/2026| Return | Correlation | |
|---|---|---|
| WDC | -38.1% | |
| Market (SPY) | 3.0% | 34.0% |
| Sector (XLK) | -0.9% | 65.3% |
Fundamental Drivers
The 46.3% change in WDC stock from 3/31/2026 to 10/29/2026 was primarily driven by a 92.7% change in the company's Net Income Margin (%).| (LTM values as of) | 3312026 | 10292026 | Change |
|---|---|---|---|
| Stock Price ($) | 270.33 | 395.41 | 46.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 10,734 | 14,482 | 34.9% |
| Net Income Margin (%) | 35.4% | 68.3% | 92.7% |
| P/E Multiple | 24.2 | 14.6 | -39.6% |
| Shares Outstanding (Mil) | 341 | 366 | -6.8% |
| Cumulative Contribution | 46.3% |
Market Drivers
3/31/2026 to 10/29/2026| Return | Correlation | |
|---|---|---|
| WDC | 46.3% | |
| Market (SPY) | 18.6% | 48.3% |
| Sector (XLK) | 42.2% | 66.1% |
Fundamental Drivers
The 230.0% change in WDC stock from 9/30/2025 to 10/29/2026 was primarily driven by a 248.2% change in the company's Net Income Margin (%).| (LTM values as of) | 9302025 | 10292026 | Change |
|---|---|---|---|
| Stock Price ($) | 119.84 | 395.41 | 230.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 9,520 | 14,482 | 52.1% |
| Net Income Margin (%) | 19.6% | 68.3% | 248.2% |
| P/E Multiple | 22.5 | 14.6 | -34.9% |
| Shares Outstanding (Mil) | 350 | 366 | -4.4% |
| Cumulative Contribution | 230.0% |
Market Drivers
9/30/2025 to 10/29/2026| Return | Correlation | |
|---|---|---|
| WDC | 230.0% | |
| Market (SPY) | 16.4% | 48.0% |
| Sector (XLK) | 34.5% | 62.5% |
Fundamental Drivers
The 1064.6% change in WDC stock from 9/30/2023 to 10/29/2026 was primarily driven by a 478.9% change in the company's P/S Multiple.| (LTM values as of) | 9302023 | 10292026 | Change |
|---|---|---|---|
| Stock Price ($) | 33.95 | 395.41 | 1064.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 6,255 | 14,482 | 131.5% |
| P/S Multiple | 1.7 | 10.0 | 478.9% |
| Shares Outstanding (Mil) | 318 | 366 | -13.1% |
| Cumulative Contribution | 1064.6% |
Market Drivers
9/30/2023 to 10/29/2026| Return | Correlation | |
|---|---|---|
| WDC | 1064.6% | |
| Market (SPY) | 86.2% | 51.3% |
| Sector (XLK) | 134.4% | 62.2% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| WDC Return | 18% | -52% | 66% | 14% | 288% | 130% | 862% |
| Peers Return | 49% | -30% | 60% | 24% | 97% | 192% | 1079% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 13% | 106% |
Monthly Win Rates [3] | |||||||
| WDC Win Rate | 50% | 42% | 58% | 67% | 92% | 60% | |
| Peers Win Rate | 63% | 38% | 63% | 57% | 63% | 68% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| WDC Max Drawdown | -32% | -55% | -29% | -30% | -43% | -55% | |
| Peers Max Drawdown | -20% | -44% | -17% | -32% | -42% | -29% | |
| 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 10/29/2026 (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.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
| 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.
AI Analysis | Feedback
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.
Peer Outperformance in Technology Hardware, Storage & Peripherals
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Electronic Manufacturing Services | 10 | 33.8% | 133.1% | 253.1% | FLEX 650% · TTMI 562% · JBL 387% |
| Technology Distributors | 9 | 42.2% | 96.0% | 90.9% | AVT 174% · SNX 159% · CNXN 97% |
| Semiconductor Materials & Equipment | 28 | 55.9% | 84.8% | 71.4% | AXTI 645% · LRCX 375% · KLAC 372% |
| Communications Equipment | 36 | 8.9% | 87.9% | 58.8% | LITE 1014% · AAOI 935% · ANET 619% |
| Electronic Components | 26 | 1.3% | 71.6% | 56.0% | CLS 2779% · BELFA 1192% · APH 347% |
| Semiconductors | 55 | 5.9% | 59.0% | 17.8% | MU 1285% · NVDA 739% · AVGO 609% |
| Technology Hardware, Storage & Peripherals ← | 21 | 13.9% | 107.7% | 9.1% | WDC 916% · SMCI 873% · DELL 846% |
| Internet Services & Infrastructure | 6 | 8.4% | 51.8% | -1.7% | GDDY 53% · VRSN 40% · DOCN 2% |
| Electronic Equipment & Instruments | 27 | -7.2% | 33.9% | -4.7% | PI 162% · OSIS 124% · KEYS 83% |
| IT Consulting & Other Services | 30 | -26.5% | -2.8% | -25.2% | CHRN 410821% · APLD 314% · ADEA 168% |
| Application Software | 126 | -17.7% | -4.3% | -47.1% | PLTR 659% · FROG 202% · AGYS 143% |
| Systems Software | 69 | -8.4% | 34.0% | -49.2% | ZETA 296% · CRWD 271% · CVLT 179% |
Latest Trefis Analyses
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 411.61 |
| Mkt Cap | 145.5 |
| Rev LTM | 28,176 |
| Op Inc LTM | 5,060 |
| FCF LTM | 4,222 |
| FCF 3Y Avg | 2,206 |
| CFO LTM | 5,778 |
| CFO 3Y Avg | 3,648 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 38.5% |
| Rev Chg 3Y Avg | 19.9% |
| Rev Chg Q | 52.0% |
| QoQ Delta Rev Chg LTM | 11.4% |
| Op Inc Chg LTM | 111.9% |
| Op Inc Chg 3Y Avg | 132.7% |
| Op Mgn LTM | 30.3% |
| Op Mgn 3Y Avg | 21.9% |
| QoQ Delta Op Mgn LTM | 3.6% |
| CFO/Rev LTM | 27.9% |
| CFO/Rev 3Y Avg | 19.4% |
| FCF/Rev LTM | 23.9% |
| FCF/Rev 3Y Avg | 15.4% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 145.5 |
| P/S | 6.7 |
| P/Op Inc | 22.3 |
| P/EBIT | 20.1 |
| P/E | 26.0 |
| P/CFO | 22.8 |
| Total Yield | 4.4% |
| Dividend Yield | 0.5% |
| FCF Yield 3Y Avg | 3.1% |
| D/E | 0.0 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -15.7% |
| 3M Rtn | 6.4% |
| 6M Rtn | 83.9% |
| 12M Rtn | 162.4% |
| 3Y Rtn | 772.2% |
| 1M Excs Rtn | -17.0% |
| 3M Excs Rtn | 6.4% |
| 6M Excs Rtn | 76.7% |
| 12M Excs Rtn | 176.4% |
| 3Y Excs Rtn | 694.0% |
Comparison Analyses
Segment Financials
Revenue by Segment| $ Mil | 2026 | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|---|
| Hard disk drives (HDD) | 12,919 | 9,520 | 6,317 | 6,255 | 9,040 |
| Flash-based products (Flash) | 9,753 | ||||
| Total | 12,919 | 9,520 | 6,317 | 6,255 | 18,793 |
| $ Mil | 2001 |
|---|---|
| WDT | -4 |
| All Other | -30 |
| Total | -34 |
| $ Mil | 2026 | 2025 | 2024 | 2023 |
|---|---|---|---|---|
| Hard disk drives (HDD) | 9,424 | 1,643 | -765 | -902 |
| Total | 9,424 | 1,643 | -765 | -902 |
| $ Mil | 2001 |
|---|---|
| WDT | 496 |
| All Other | 12 |
| Total | 508 |
Price Behavior
| Market Price | $395.41 | |
| Market Cap ($ Bil) | 144.7 | |
| First Trading Date | 01/02/1987 | |
| Distance from 52W High | -47.0% | |
| 50 Days | 200 Days | |
| DMA Price | $423.48 | $418.05 |
| DMA Trend | down | up |
| Distance from DMA | -6.6% | -5.4% |
| 3M | 1YR | |
| Volatility | 68.9% | 81.3% |
| Downside Capture | 351.57 | 254.03 |
| Upside Capture | 111.79 | 361.48 |
| Correlation (S&P 500) | 24.6% | 48.3% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 0.22 | 0.69 | 2.20 | 3.14 | 2.96 | 1.96 |
| Up Beta | 1.13 | 0.35 | 5.16 | 4.48 | 3.15 | 1.74 |
| Down Beta | 1.82 | -0.54 | -0.90 | 1.96 | 1.72 | 1.70 |
| Up Capture | -7% | 31% | 99% | 513% | 1955% | 6843% |
| Bmk +ve Days | 6 | 16 | 27 | 66 | 132 | 424 |
| Stock +ve Days | 12 | 21 | 33 | 72 | 144 | 421 |
| Down Capture | 10% | 210% | 271% | 223% | 169% | 112% |
| Bmk -ve Days | 16 | 26 | 37 | 60 | 120 | 328 |
| Stock -ve Days | 10 | 21 | 31 | 54 | 108 | 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 | 218.6% | 81.3% | 1.77 | - |
| Sector ETF (XLK) | 25.6% | 26.7% | 0.82 | 63.7% |
| Equity (SPY) | 13.0% | 12.7% | 0.67 | 49.7% |
| Gold (GLD) | 1.2% | 28.4% | 0.03 | 27.4% |
| Commodities (DBC) | 49.5% | 20.6% | 1.83 | 1.0% |
| Real Estate (VNQ) | 7.2% | 14.0% | 0.25 | -14.6% |
| Bitcoin (BTCUSD) | -29.5% | 43.4% | -0.69 | 21.0% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with WDC | |
|---|---|---|---|---|
| WDC | 56.4% | 53.6% | 1.03 | - |
| Sector ETF (XLK) | 19.8% | 26.0% | 0.67 | 60.6% |
| Equity (SPY) | 12.6% | 17.1% | 0.55 | 53.2% |
| Gold (GLD) | 17.2% | 18.9% | 0.73 | 18.7% |
| Commodities (DBC) | 9.4% | 19.5% | 0.36 | 11.2% |
| Real Estate (VNQ) | 1.0% | 18.9% | -0.06 | 23.3% |
| Bitcoin (BTCUSD) | 5.1% | 51.6% | 0.28 | 20.9% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with WDC | |
|---|---|---|---|---|
| WDC | 27.3% | 50.7% | 0.67 | - |
| Sector ETF (XLK) | 24.3% | 25.1% | 0.88 | 59.6% |
| Equity (SPY) | 15.4% | 17.9% | 0.73 | 56.3% |
| Gold (GLD) | 11.8% | 16.4% | 0.58 | 13.5% |
| Commodities (DBC) | 8.1% | 18.1% | 0.36 | 19.4% |
| Real Estate (VNQ) | 5.2% | 20.7% | 0.21 | 34.4% |
| Bitcoin (BTCUSD) | 62.3% | 66.2% | 1.02 | 15.3% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 10/30/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 10/22/2026 | -3.0% | 11.6% | |
| 8/5/2026 | -13.0% | -12.5% | -14.9% |
| 4/30/2026 | -0.7% | 6.8% | 25.7% |
| 1/29/2026 | -0.5% | -3.7% | 0.0% |
| 10/30/2025 | 8.7% | 18.4% | 15.8% |
| 7/30/2025 | 10.2% | 3.3% | 14.9% |
| 4/30/2025 | 0.2% | 1.0% | 17.5% |
| 1/29/2025 | -0.1% | 1.5% | 2.5% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 11 | 14 | 16 |
| # Negative | 14 | 11 | 8 |
| Median Positive | 3.3% | 5.0% | 14.0% |
| Median Negative | -1.5% | -3.3% | -5.5% |
| Max Positive | 10.2% | 18.4% | 28.8% |
| Max Negative | -13.0% | -16.1% | -14.9% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 10/22/2026 | -3.0% | 11.6% | |
| 8/5/2026 | -13.0% | -12.5% | -14.9% |
| 4/30/2026 | -0.7% | 6.8% | 25.7% |
| 1/29/2026 | -0.5% | -3.7% | 0.0% |
| 10/30/2025 | 8.7% | 18.4% | 15.8% |
| 7/30/2025 | 10.2% | 3.3% | 14.9% |
| 4/30/2025 | 0.2% | 1.0% | 17.5% |
| 1/29/2025 | -0.1% | 1.5% | 2.5% |
| 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 | 4.0% | -1.3% | -3.4% |
| 10/30/2023 | -3.9% | 3.3% | 13.2% |
| 7/31/2023 | 0.7% | 2.2% | -2.4% |
| 5/8/2023 | -1.7% | 7.5% | 17.1% |
| 1/31/2023 | -0.7% | -4.5% | -13.8% |
| 10/27/2022 | 3.4% | -1.8% | 5.2% |
| 8/5/2022 | 1.0% | 7.6% | -13.0% |
| 4/28/2022 | 0.9% | 16.3% | 18.3% |
| 1/27/2022 | -1.4% | -2.1% | -3.0% |
| 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 | -1.0% | 8.5% | 28.8% |
| 10/28/2020 | -1.8% | -3.3% | 18.1% |
| SUMMARY STATS | |||
| # Positive | 11 | 14 | 16 |
| # Negative | 14 | 11 | 8 |
| Median Positive | 3.3% | 5.0% | 14.0% |
| Median Negative | -1.5% | -3.3% | -5.5% |
| Max Positive | 10.2% | 18.4% | 28.8% |
| Max Negative | -13.0% | -16.1% | -14.9% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 09/30/2026 | 10/23/2026 | 10-Q |
| 06/30/2026 | 08/14/2026 | 10-K |
| 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 |
| Report Date | Filing Date | Filing |
|---|---|---|
| 09/30/2026 | 10/23/2026 | 10-Q |
| 06/30/2026 | 08/14/2026 | 10-K |
| 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 |
Recent Forward Guidance
Updated 10/23/2026Latest: Q1 2027 Earnings Reported 10/22/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q2 2027 Diluted weighted average shares | Reported | 380.00 Mil | -2.1% | Lower New | Guidance: 388.00 Mil for Q1 2027 | |||
| Q2 2027 Quarterly Cash Dividend | Reported | 0.18 | ||||||
| Q2 2027 Revenue Growth | Reported | 66.0% | 69.0% | 72.0% | ||||
| Q2 2027 Revenue | Reported | 5.00 Bil | 5.10 Bil | 5.20 Bil | 24.4% | Higher New | Guidance: 4.10 Bil for Q1 2027 | |
| Q2 2027 Gross margin | Reported | 60.0% | 60.5% | 61.0% | 5.0% | Higher New | Guidance: 55.5% for Q1 2027 | |
| Q2 2027 Operating expenses | Reported | 400.00 Mil | 405.00 Mil | 410.00 Mil | 2.5% | Higher New | Guidance: 395.00 Mil for Q1 2027 | |
| Q2 2027 Interest and other expense, net | Reported | 15.00 Mil | 0.0% | Same New | Guidance: 15.00 Mil for Q1 2027 | |||
| Q2 2027 Tax rate | Reported | 17.0% | 0.0% | Same New | Guidance: 17.0% for Q1 2027 | |||
| Q2 2027 Diluted net income per common share | Reported | 5.6 | 5.8 | 6 | 45.0% | Higher New | Guidance: 4 for Q1 2027 | |
Prior: Q4 2026 Earnings Reported 8/5/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q1 2027 Diluted weighted average shares | Reported | 388.00 Mil | ||||||
| Q1 2027 Revenue | Reported | 4.00 Bil | 4.10 Bil | 4.20 Bil | 12.3% | Higher New | Guidance: 3.65 Bil for Q4 2026 | |
| Q1 2027 Gross Profit | Calculated | 2.20 Bil | 2.28 Bil | 2.35 Bil | Rev x Gross Margin | |||
| Q1 2027 Gross margin | Reported | 55.0% | 55.5% | 56.0% | 4.0% | Higher New | Guidance: 51.5% for Q4 2026 | |
| Q1 2027 Operating expenses | Reported | 390.00 Mil | 395.00 Mil | 400.00 Mil | 1.3% | Higher New | Guidance: 390.00 Mil for Q4 2026 | |
| Q1 2027 Interest and other expense, net | Reported | 15.00 Mil | ||||||
| Q1 2027 Tax rate | Reported | 17.0% | ||||||
| Q1 2027 Diluted net income per common share | Reported | 3.85 | 4 | 4.15 | 23.1% | Higher New | Guidance: 3.25 for Q4 2026 | |
Q3 2026 Earnings Reported 4/30/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q4 2026 Revenue | Reported | 3.55 Bil | 3.65 Bil | 3.75 Bil | 14.1% | Higher New | Guidance: 3.20 Bil for Q3 2026 | |
| Q4 2026 Gross Profit | Calculated | 1.81 Bil | 1.88 Bil | 1.95 Bil | Rev x Gross Margin | |||
| Q4 2026 Gross margin | Reported | 51.0% | 51.5% | 52.0% | 4.0% | Higher New | Guidance: 47.5% for Q3 2026 | |
| Q4 2026 Operating expenses | Reported | 385.00 Mil | 390.00 Mil | 395.00 Mil | 1.3% | Higher New | Guidance: 385.00 Mil for Q3 2026 | |
| Q4 2026 Operating Income | Calculated | 1.42 Bil | 1.49 Bil | 1.56 Bil | Rev x Gross Margin - Opex | |||
| Q4 2026 Operating Margin | Calculated | 39.87% | 40.82% | 41.73% | Implied by guided Rev/GM/Opex | |||
| Q4 2026 Diluted net income per common share | Reported | 3.1 | 3.25 | 3.4 | 41.3% | Higher New | Guidance: 2.3 for Q3 2026 | |
Q2 2026 Earnings Reported 1/29/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q3 2026 Revenue | Reported | 3.10 Bil | 3.20 Bil | 10.3% | Higher New | Guidance: 2.90 Bil for Q2 2026 | ||
| Q3 2026 Gross Profit | Calculated | 1.46 Bil | 1.52 Bil | 1.54 Bil | Rev x Gross Margin | |||
| Q3 2026 Gross margin | Reported | 47.0% | 47.5% | 48.0% | 3.0% | Higher New | Guidance: 44.5% for Q2 2026 | |
| Q3 2026 Operating expenses | Reported | 380.00 Mil | 385.00 Mil | 390.00 Mil | 4.1% | Higher New | Guidance: 370.00 Mil for Q2 2026 | |
| Q3 2026 Operating Income | Calculated | 1.07 Bil | 1.14 Bil | 1.16 Bil | Rev x Gross Margin - Opex | |||
| Q3 2026 Operating Margin | Calculated | 34.42% | 35.47% | 36.13% | Implied by guided Rev/GM/Opex | |||
| Q3 2026 Diluted net income per common share | Reported | 2.15 | 2.3 | 2.45 | 22.3% | Higher New | Guidance: 1.88 for Q2 2026 | |
Insider Activity
Updated 10/22/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 10222026 | 380.00 | 807 | 306,660 | 41,392,510 | Form |
| 2 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 9082026 | 451.20 | 432 | 194,918 | 50,096,736 | Form |
| 3 | Gubbi, Vidyadhara K | Chief of Global Operations | Direct | Sell | 9082026 | 459.87 | 1,795 | 825,472 | 37,052,444 | Form |
| 4 | Streeter, Stephanie A | Family Trust | Sell | 9022026 | 455.00 | 1,600 | 728,000 | 15,837,185 | Form | |
| 5 | Streeter, Stephanie A | Family Trust | Sell | 9022026 | 447.82 | 4,000 | 1,791,280 | 16,303,783 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 10222026 | 380.00 | 807 | 306,660 | 41,392,510 | Form |
| 2 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 9082026 | 451.20 | 432 | 194,918 | 50,096,736 | Form |
| 3 | Gubbi, Vidyadhara K | Chief of Global Operations | Direct | Sell | 9082026 | 459.87 | 1,795 | 825,472 | 37,052,444 | Form |
| 4 | Streeter, Stephanie A | Family Trust | Sell | 9022026 | 455.00 | 1,600 | 728,000 | 15,837,185 | Form | |
| 5 | Streeter, Stephanie A | Family Trust | Sell | 9022026 | 447.82 | 4,000 | 1,791,280 | 16,303,783 | Form | |
| 6 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 8272026 | 478.36 | 1,007 | 481,709 | 53,650,466 | Form |
| 7 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 8272026 | 450.78 | 476 | 214,571 | 51,742,332 | Form |
| 8 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 8242026 | 446.17 | 684 | 305,180 | 50,036,181 | Form |
| 9 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 8242026 | 477.27 | 235 | 112,158 | 54,374,417 | Form |
| 10 | Tan, Irving | Chief Executive Officer | Direct | Sell | 8122026 | 444.97 | 20,000 | 8,899,329 | 256,285,554 | Form |
| 11 | Cole, Martin I | Direct | Sell | 7292026 | 462.77 | 192 | 88,852 | 9,918,584 | Form | |
| 12 | Cole, Martin I | Direct | Sell | 7292026 | 448.66 | 3,808 | 1,708,505 | 9,702,315 | Form | |
| 13 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 7212026 | 529.63 | 808 | 427,941 | 60,663,291 | Form |
| 14 | Cole, Martin I | Direct | Sell | 6112026 | 536.01 | 720 | 385,924 | 13,632,236 | Form | |
| 15 | Cole, Martin I | Direct | Sell | 6112026 | 511.16 | 3,280 | 1,676,600 | 13,368,333 | Form | |
| 16 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 6052026 | 545.60 | 432 | 235,699 | 63,640,421 | Form |
| 17 | Gubbi, Vidyadhara K | Chief of Global Operations | Direct | Sell | 6022026 | 556.24 | 2,475 | 1,376,694 | 47,366,061 | Form |
| 18 | Kiddoo, Bruce E | Direct | Sell | 5292026 | 528.52 | 750 | 396,390 | 2,062,814 | Form | |
| 19 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 5272026 | 539.63 | 214 | 115,481 | 63,221,432 | Form |
| 20 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 5272026 | 488.61 | 308 | 150,492 | 57,721,942 | Form |
| 21 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 5222026 | 458.87 | 106 | 48,640 | 54,349,939 | Form |
| 22 | Davis, Brian Scott | Chief Sales & Mrktng Officer | Direct | Sell | 5122026 | 500.69 | 10,000 | 5,006,895 | 52,854,790 | Form |
| 23 | Gubbi, Vidyadhara K | Chief of Global Operations | Direct | Sell | 5052026 | 443.19 | 4,674 | 2,071,447 | 39,904,821 | Form |
| 24 | Tan, Irving | Chief Executive Officer | Direct | Sell | 5052026 | 411.84 | 20,000 | 8,236,864 | 246,344,024 | Form |
| 25 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 4222026 | 377.09 | 363 | 136,884 | 45,259,473 | Form |
| 26 | Gubbi, Vidyadhara K | Chief of Global Operations | Direct | Sell | 3102026 | 255.32 | 8,518 | 2,174,858 | 25,347,645 | Form |
| 27 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 3052026 | 268.27 | 9,324 | 2,501,382 | 32,644,052 | Form |
| 28 | Gubbi, Vidyadhara K | Chief of Global Operations | Direct | Sell | 3052026 | 270.31 | 10,148 | 2,743,110 | 29,137,840 | Form |
| 29 | Cole, Martin I | Direct | Sell | 3032026 | 271.67 | 6,000 | 1,630,002 | 7,995,974 | Form | |
| 30 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 2272026 | 286.11 | 214 | 61,228 | 38,276,082 | Form |
| 31 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 2242026 | 281.70 | 308 | 86,764 | 37,961,610 | Form |
| 32 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 2242026 | 283.83 | 130 | 36,898 | 38,336,067 | Form |
| 33 | Davis, Brian Scott | Chief Sales & Mrktng Officer | Direct | Sell | 2192026 | 279.16 | 10,000 | 2,791,603 | 33,999,491 | Form |
| 34 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 2062026 | 270.49 | 6,780 | 1,833,922 | 36,932,164 | Form |
| 35 | Massengill, Matthew E | Family Trust | Sell | 2062026 | 260.43 | 36,926 | Form | |||
| 36 | Tan, Irving | Chief Executive Officer | Direct | Sell | 2042026 | 255.44 | 20,000 | 5,108,831 | 159,289,777 | Form |
| 37 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 1212026 | 229.00 | 447 | 102,363 | 32,819,822 | Form |
| 38 | Gubbi, Vidyadhara K | Chief of Global Operations | Direct | Sell | 12082025 | 168.14 | 8,943 | 1,503,713 | 21,331,442 | Form |
| 39 | Gubbi, Vidyadhara K | Chief of Global Operations | Direct | Sell | 12082025 | 159.94 | 13,877 | 2,219,510 | 21,721,189 | Form |
| 40 | Alexy, Kimberly | Direct | Sell | 12082025 | 160.08 | 2,000 | 320,165 | 253,731 | Form | |
| 41 | Tregillis, Cynthia L | Chief Legal Officer & Corp Sec | Direct | Sell | 12032025 | 160.57 | 2,801 | 449,752 | 23,217,519 | Form |
| 42 | Cole, Martin I | Direct | Sell | 12032025 | 162.62 | 6,000 | 975,696 | 5,761,973 | Form | |
| 43 | Oulman, Roxanne | Direct | Sell | 11262025 | 154.42 | 1,800 | 277,956 | 596,524 | Form | |
| 44 | Alexy, Kimberly | Direct | Sell | 11262025 | 154.00 | 1,768 | 272,272 | 552,090 | Form | |
| 45 | Cole, Martin I | Direct | Sell | 11062025 | 161.32 | 10,000 | 1,613,212 | 6,372,834 | Form | |
| 46 | Tan, Irving | Chief Executive Officer | Direct | Sell | 11052025 | 150.69 | 20,000 | 3,013,784 | 97,264,908 | Form |
Investor Activity (13F)
Updated Oct 30, 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
Constructive
CONVICTION RATIONALE
Western Digital is executing flawlessly into a structural AI-driven demand cycle, with accelerating revenue growth and visibility into 2028. While the technology race with its prime competitor is tight, current performance and a clear product roadmap support a constructive outlook. The market's deep skepticism appears disconnected from the company's powerful forward-looking indicators.
STOCK ARCHETYPE
Cyclical Manufacturing / Infrastructure BuildoutTotal Revenue = (Total Exabytes Shipped) x (Average Selling Price per Exabyte) Gross margin expansion driven by a mix shift to higher-capacity, more technologically advanced drives (ePMR and HAMR) which command better pricing, combined with operating leverage on a relatively fixed cost base.
INVESTMENT THESIS
Evidence suggests a successful transition from a cyclical to a secular growth profile is underway.
- Revenue growth accelerated to 55.5% YoY, with Q2 FY27 guidance implying 69% growth.
- Average price per terabyte growth accelerated to 28% YoY in Q1 FY27.
- Gross margin is guided to expand to 60%-61% in Q2 FY27.
- Company has firm purchase orders through CY2026 and agreements extending to 2028.
PRIMARY RISK
A stumble in the critical transition to next-generation HAMR drives could cede technology leadership to its only major competitor, erasing current pricing power and margin advantages.
- A competitor expects HAMR to be 50% of its nearline exabyte run rate by end of CY2026.
- WDC targets finishing qualifications in Q1 CY2027 and volume shipments in H1 CY2027.
- The stock has fallen -52.3% from its 52-week high, reflecting deep investor skepticism.
- The stock fell -9.0% after its latest strong earnings and guidance report.
| KPI | Status | Rationale |
|---|---|---|
| Exabyte Shipments Growth | 22% year-over-year growth in Q1 FY2027 - Decelerating | The year-over-year growth rate has slowed from its peak two quarters ago but has stabilized at a strong 22%. Management commentary on the latest earnings call characterized the current growth rate as a 'floor' and expects it to accelerate through the fiscal year, driven by new product transitions. |
| Average Price per Terabyte Growth | 28% year-over-year growth in Q1 FY2027 - Accelerating | The company is demonstrating significant pricing power, with the rate of price increases accelerating each quarter. Management attributes this to a favorable pricing environment, a mix shift towards higher-capacity drives, and delivering greater value to customers. |
| Exabytes Shipped | 248 (Q1 FY2027) | Market rewards Management has stated a long-term data storage growth expectation of greater than 25% CAGR.. Signals the total volume of storage capacity delivered to customers, representing the primary measure of output and demand fulfillment. |
| Latest-Quarter Revenue Growth (YoY) | 55.5% (Q1 FY2027) | Indicates the top-line growth momentum, reflecting the combination of volume (exabytes shipped) and pricing (ASP per terabyte). |
| Trailing-Twelve-Month Operating Margin | 40.7% (as of 9/30/2026) | Measures core profitability and operating leverage, reflecting the success of the company's pricing strategy and cost management. |
Structural Growth vs. Cyclical Peak
BULL VIEW
Bulls believe multi-year AI demand and disciplined supply create a new paradigm, evidenced by long-term agreements and accelerating pricing power, justifying a structural re-rating of the business.
CORE TENSION
Can accelerating fundamentals, like 55.5% revenue growth, overcome the market's deep cyclical skepticism, reflected in the stock's negative reaction to blowout earnings?
PREVAILING SENTIMENT
The latest evidence favors the bulls. Forward-looking indicators like firm POs, multi-year LTAs, and sharply raised guidance for Q2 FY27 directly contradict the cyclical peak narrative.
BEAR VIEW
Bears see a classic hardware supercycle peak, arguing historical precedent will prevail. They believe the stock's -9.0% drop on strong results shows the market expects an imminent downturn.
| Timeline | Event & Metric To Watch |
|---|---|
by the second quarter | ePMR Platform Mix Update Watch: The company expects its latest ePMR platform to represent close to 30% of nearline shipments. |
12/1/2026 | Peer NetApp Earnings Watch: Peer NetApp (NTAP) is scheduled to report earnings. |
12/2/2026 | Peer HPE Earnings Watch: Peer Hewlett Packard Enterprise (HPE) is scheduled to report earnings. |
12/15/2026 | Peer Demand Read-Through Watch: Micron's commentary on AI and data center demand strength, which could reset expectations for WDC. |
December 17, 2026 | Quarterly Dividend Payment Watch: A quarterly cash dividend of $0.175 per share will be paid. |
January 2027 | Revolving Credit Facility Matures Watch: The company's Revolving Credit Facility is scheduled to mature. |
1/25/2027 | Execution Scrutiny Watch: Direct comparison of WDC's Q2 results and Q3 guidance against STX's reported metrics, especially gross margin. |
1/27/2027 | Product Ramp Milestone Watch: Confirmation of the ePMR shipment mix and any change to the HAMR qualification or volume shipment timeline. |
1/27/2027 | Next Earnings Report Watch: The company is scheduled to report its next quarterly earnings. |
first half of calendar year 2027 | HAMR Volume Shipments Begin Watch: The company expects to begin volume shipments of its first-generation HAMR product. |
| Date | Event | Stock Impact |
|---|---|---|
2026-10-22 | Reported Q1 Results, Raised Guidance Details: For Q1 FY27, revenue grew 55.5% year-over-year. The company issued 'Higher New' guidance for Q2 revenue and EPS, but the stock reacted negatively by -9.0%. | -9.2% $378.51 -> $343.67 |
2026-08-05 | Reported Q4 Results, Stock Fell Details: | -17.7% $548.38 -> $451.38 |
2026-05-06 | Announced Sandisk Share Exchange Details: The company entered agreements to receive 1,865,801 shares of its own common stock in exchange for 653,203 shares of Sandisk common stock. | -0.3% $464.99 -> $463.64 |
2026-04-30 | Reported Strong Q3 Results Details: For Q3 FY26, the company reported revenue growth of 45% year-over-year, a gross margin of 50.5%, and generated $978 million in free cash flow. | +4.5% $412.52 -> $431.27 |
Market Narrative Shifted Details: Analyst notes in September highlighted that the stock's correction had 'priced out the froth' and that multi-year sales contracts through 2027-2028 secured the business. | - |
Position Sizing
1% - 2%
MINIMAL POSITION
Sizing is volatility-based: WDC trades at roughly 74% annualized realized (three-month) volatility versus about 11% for the S&P 500 (6.7x the market). 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 Peer ExposureSeagate may offer a slight time-to-market advantage on the HAMR technology transition, potentially capturing early share in the highest-capacity drive segment.
MU - Micron Technology
Broader AI InfrastructureMicron provides exposure to the memory side of the AI infrastructure buildout (DRAM, HBM), which is a different, though related, component of data center spending.
Western Digital is a pure-play, vertically integrated arms dealer for the AI-driven data explosion, monetizing durable demand for mass-capacity storage through technology leadership rather than unit volume.
After spinning off its Flash business, WDC is now solely focused on the HDD market, which is experiencing a structural upswing driven by insatiable demand from cloud and AI data centers. The company's strategy is to meet this demand by increasing storage capacity per drive (areal density) through its ePMR and HAMR technology roadmaps. This technology-led approach, combined with a tight supply environment, is enabling significant pricing power and margin expansion, transforming a historically cyclical business into a secular growth story.
Sustained high-20s or greater exabyte growth, successful volume ramp of HAMR products in 2027, continued expansion of gross and operating margins, and announcements of new or extended long-term agreements with hyperscalers.
A significant slowdown in cloud or AI infrastructure spending, major delays or yield issues with the HAMR technology transition, or evidence of a competitor rapidly gaining share with a superior or lower-cost technology.
Short-term fluctuations in Client or Consumer end-market demand; quarterly variations in exabyte growth due to customer-specific product transition timing.
Repricing Catalyst
The market's recognition of the durable, multi-year demand for mass storage driven by AI, which transforms WDC from a cyclical hardware supplier to a key enabler of a secular growth trend, leading to sustained revenue growth and margin expansion.
Hard disk drives (HDD)
$14.5B TTM (100% of Total)What It Is
The company sells HDDs to three key end markets: 'Cloud' (public/private cloud environments, enterprise customers), 'Client' (OEMs for desktops and notebooks), and 'Consumer' (retail and end-user external storage products).
Who Pays & How
Hyperscale cloud providers, enterprise OEMs, and channel distributors pay for high-capacity, cost-effective, and reliable data storage. They choose Western Digital for its technology leadership in areal density (ePMR, HAMR) which lowers their total cost of ownership for storing vast amounts of data generated by AI and cloud applications.
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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