Western Digital Corporation earnings overview

WDC FY2026 Q3 · Calendar Q2 2026

Western Digital Corporation

Western Digital Q3 FY2026 results reinforce the AI-driven storage thesis. Revenue grew 45 percent YoY to 3.3 billion with cloud at 89 percent of sales, gross margin expanded 1,040 basis points to 50.5 percent, and EPS more than doubled to 2.72, beating the consensus estimate by 14 percent. The SanDisk share monetization reduced debt by 3.1 billion and earned an investment-grade rating upgrade, materially strengthening the balance sheet. Management roadmap of 44-TB HAMR drives, 40-TB EPMR drives in H2 2026, and UltraSMR powering roughly 60 percent of exabytes by 2027 positions WDC to capture projected above-25 percent CAGR exabyte growth from agentic AI and synthetic data workloads. The stock dipped modestly on the print with an abnormal move of minus 1.0 percent but subsequently rallied over 26 percent, suggesting the market increasingly validated the earnings strength and forward…