Western Digital Corporation · WDC · FY2025 Q2 · Calendar Q1 2025

Western Digital: Strong HDD offsets Flash pricing pressure

The quarter supports a differentiated thesis: AI and cloud demand are supporting HDDs and enterprise storage, but Flash pricing pressure and separation execution make the near-term earnings path uneven.

Reported Before market openNASDAQTechnology $128.64B market cap
80quality score

Earnings scorecard

Reported versus consensus
Reported EPS — Consensus $1.87
EPS surprise — Reported versus consensus
Reported revenue — Consensus $4.26B
Revenue surprise — Reported versus consensus

Market reaction

prior-close to event-session close
Stock move -0.1% Event window
SPY move -0.4% Same window
Abnormal move +0.3% Stock minus SPY
Volume 1.9× Versus trailing sessions
Subsequent drift -23.2% Up to 20 sessions
WDCSPY benchmark

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Transcript intelligence

What changed

Compared with the prior quarter, the narrative shifted from broad strength and raised guidance to a more mixed setup: HDD performance remained strong, while Flash pricing pressure and underutilization charges became more prominent and overall guidance sentiment was maintained.

Guidance delta

Overall guidance sentiment was maintained. The supplied analysis says Q3 revenue is guided lower at $3.75–$3.95 billion with modest margin compression.

Key takeaways

  • Revenue grew sequentially to $4.3 billion, led by record HDD volume and margin.
  • Flash faced pricing headwinds and $20–$30 million of underutilization charges.
  • Management said the Flash/HDD separation remained on schedule, with new CEOs appointed.
  • AI and cloud data growth, higher-density HDDs, and enterprise SSDs remain the main demand drivers.
  • The near-term outlook is mixed: robust HDD demand but lower Q3 revenue and modest margin compression.

Management priorities

  • Complete the Flash/HDD separation and begin operating as independent companies.
  • Qualify and launch the 32 TB SMR and 24 TB CMR drives.
  • Adjust Flash production to reduce supply and support pricing stabilization.
  • Continue investment in Ultra SMR and higher-density HDD platforms.
  • Provide product road maps and strategic plans at the February investor days.

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Earnings History

Estimate Beat Miss Match
WDC REVENUE earnings history estimate and actual scatter chart 9 reported fiscal quarters and 3 future estimate-only quarters. Q2 '24 estimate $3B Q2 '24 actual $3B, miss Q3 '24 estimate $3B Q3 '24 actual $3B, beat Q4 '24 estimate $4B Q4 '24 actual $4B, beat Q1 '25 estimate $4B Q1 '25 actual $4B, miss Q4 '25 estimate $2B Q4 '25 actual $3B, beat Q1 '26 estimate $3B Q1 '26 actual $3B, beat Q2 '26 estimate $3B Q2 '26 actual $3B, beat Q3 '26 estimate $3B Q3 '26 actual $3B, beat Q4 '26 estimate $4B Q4 '26 actual $4B, beat Q1 '27 estimate $4B Q2 '27 estimate $5B Q3 '27 estimate $5B
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Analyst Consensus ?

ConsensusBuy59 ratings
Bullish4372.9%
Neutral1525.4%
Bearish11.7%

1 unmapped firm rating excluded from the percentages.

Analyst 52W Price Targets

$343.67Current
$50Low
$337.63Average
$1,050High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 25, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
UBS Neutral NeutralMaintainOct 23, 2026
TD Cowen Buy BuyMaintainOct 23, 2026
Rosenblatt Buy BuyMaintainOct 23, 2026
Morgan Stanley Overweight OverweightMaintainOct 23, 2026
JP Morgan Overweight OverweightMaintainOct 23, 2026
Show 55 more rating actions

Named analyst price targets

Upside is calculated against the persisted current price $343.67. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
Cantor FitzgeraldAnalyst unavailable$625$354.19 +81.9%Oct 23, 2026
SusquehannaAnalyst unavailable$405$354.19 +17.8%Oct 23, 2026
Mizuho SecuritiesVijay Rakesh$490$354.19 +42.6%Oct 23, 2026
UBSAnalyst unavailable$625$354.19 +81.9%Oct 23, 2026
Goldman SachsAnalyst unavailable$540$354.19 +57.1%Oct 23, 2026
See 122 more

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Company context

Snapshot as of publication

Western Digital Corporation designs, manufactures, and markets a broad range of data storage devices and software solutions across the United States, China, Hong Kong, Europe, the Middle East, Africa, and the rest of Asia, serving an international market. The company's product lineup includes client devices such as hard disk drives (HDDs) and solid-state drives (SSDs) for computing platforms like desktops, notebooks, smart video systems, gaming consoles, and set-top boxes. They also provide flash-based embedded storage solutions for mobile phones, tablets, laptops, and various portable and wearable technologies, extending into automotive, Internet of Things (IoT), industrial, and connected home applications. Additionally, Western Digital produces flash-based memory wafers.…

Historical context

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2025-01-16T23:34:34.502290+00:00
  3. Polygon adjusted daily market bars · 2026-10-25T13:20:42.932761+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-25T13:20:42.929688+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-10-25. For educational purposes only; not investment advice.