Western Digital Corporation · WDC · FY2026 Q4 · Calendar Q3 2026

Western Digital: AI Storage Demand Supports Raised Outlook

The quarter supports the view that resilient AI and cloud-storage demand can drive Western Digital's growth over the next year. Evidence includes strong exabyte shipments, a raised outlook, long-term contracts, and a capacity-drive roadmap; the main counterweights are pricing durability, transition execution, and hyperscale concentration.

Reported After market closeNASDAQTechnology $154.48B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $3.56 Consensus $3.31
EPS surprise +7.6% Reported versus consensus
Reported revenue $3.75B Consensus $3.70B
Revenue surprise +1.3% Reported versus consensus

Market reaction

event-close to next-session close
Stock move -5.4% Event window
SPY move -0.2% Same window
Abnormal move -5.2% Stock minus SPY
Volume 1.3× Versus trailing sessions
Subsequent drift -13.5% Up to 20 sessions
WDCSPY benchmark

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Transcript intelligence

What changed

Compared with the prior quarter, management raised its guidance sentiment and provided a more detailed next-generation drive roadmap, including 44-TB HAMR, 40-TB ePMR, and a future 50-TB product. The current analysis also highlights 231 exabytes shipped in Q4, up 22% year over year, and continued confidence in AI- and cloud-driven demand.

Guidance delta

Raised: management described a robust Q1 FY27 outlook with anticipated 45% revenue growth, expanding margins, and continued shareholder returns.

Key takeaways

  • AI and cloud demand remained the central growth driver, with management citing 231 exabytes shipped in Q4, up 22% year over year.
  • The product roadmap—44-TB HAMR, 40-TB ePMR, UltraSMR, and high-bandwidth HDDs—targets higher capacity and improved cost-per-terabyte economics.
  • Long-term contracts and demand from AI, physical AI, and hyperscale customers support visibility, but customer concentration and execution remain important risks.

Management priorities

  • Ramp 40-TB ePMR and expand UltraSMR adoption toward about 60% of nearline shipments by fiscal 2027.
  • Ship 44-TB HAMR drives in the first half of calendar 2027 and continue development toward 50-TB drives in the second half of calendar 2027.
  • Maintain shareholder returns while sampling high-bandwidth HDDs and serving hyperscale and emerging AI-storage demand.

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Earnings History

Estimate Beat Miss Match
WDC EPS earnings history estimate and actual scatter chart 9 reported fiscal quarters and 4 future estimate-only quarters. Q3 '24 estimate $0.22 Q3 '24 actual $0.63, beat Q4 '24 estimate $1.18 Q4 '24 actual $1.44, beat Q1 '25 estimate $1.72 Q1 '25 actual $1.78, beat Q4 '25 estimate $1.48 Q4 '25 actual $1.66, beat Q1 '26 estimate $1.59 Q1 '26 actual $1.78, beat Q2 '26 estimate $1.93 Q2 '26 actual $2.13, beat Q3 '26 estimate $2.39 Q3 '26 actual $2.72, beat Q4 '26 estimate $3.31 Q4 '26 actual $3.56, beat Q1 '27 estimate $4.06 Q2 '27 estimate $4.72 Q3 '27 estimate $5.48 Q4 '27 estimate $6.28
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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

$448.17Previous close
$50Low
$299.61Average
$1,050High

Latest persisted target per named analyst; persisted previous close from FN2's market snapshot as of Sep 22, 2026. Not an FN2 forecast.

Firm-level rating actions

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

FirmRatingPrior ratingActionDate
Citigroup Buy BuyMaintainAug 7, 2026
UBS Neutral NeutralMaintainAug 6, 2026
TD Cowen Buy BuyMaintainAug 6, 2026
Rosenblatt Buy BuyMaintainAug 6, 2026
Wells Fargo Overweight OverweightMaintainJul 10, 2026
Susquehanna Neutral NeutralMaintainJul 8, 2026
B of A Securities Buy BuyMaintainJul 1, 2026
Cantor Fitzgerald Overweight OverweightMaintainJun 29, 2026
Morgan Stanley Overweight OverweightMaintainJun 15, 2026
JP Morgan Overweight OverweightMaintainJun 12, 2026
Mizuho Outperform OutperformMaintainJun 8, 2026
Barclays Overweight OverweightMaintainMay 27, 2026
Evercore ISI Group Outperform OutperformMaintainMay 26, 2026
Baird Outperform OutperformMaintainMay 4, 2026
Wedbush Outperform OutperformMaintainFeb 9, 2026
Goldman Sachs Neutral NeutralMaintainFeb 4, 2026
Loop Capital Buy BuyMaintainNov 10, 2025
Benchmark Buy BuyMaintainOct 31, 2025
TD Securities Buy BuyMaintainMay 1, 2025
Summit Insights Group Hold BuyDowngradeAug 1, 2024
Argus Research Buy BuyMaintainApr 29, 2024
Raymond James Market Perform OutperformDowngradeApr 22, 2024
Deutsche Bank Buy HoldUpgradeJan 16, 2024
Fox Advisors Overweight Equal WeightUpgradeOct 31, 2023
Exane BNP Paribas Outperform NeutralUpgradeSep 20, 2023
Credit Suisse Neutral NeutralMaintainMay 9, 2023
Craig-Hallum Buy BuyMaintainFeb 1, 2023
Stifel Buy BuyMaintainAug 8, 2022
RBC Capital Outperform OutperformMaintainJan 29, 2021
Cleveland Research Neutral UnderperformUpgradeSep 23, 2020
Bernstein Outperform OutperformMaintainJul 15, 2020
CFRA Hold HoldMaintainMay 1, 2020
Stifel Nicolaus Buy HoldUpgradeMar 2, 2020
Cascend Buy BuyMaintainFeb 28, 2020
Longbow Research Buy BuyMaintainJan 21, 2020
Cowen & Co. Outperform Market PerformUpgradeJan 7, 2020
Bank of America Buy BuyMaintainApr 24, 2019
BMO Capital Market Perform Market PerformMaintainOct 26, 2018
Standpoint Research Buy HoldUpgradeJul 10, 2018
Summit Redstone Partners Hold BuyDowngradeJan 26, 2018
Aegis Capital Buy BuyMaintainJun 13, 2017
Jefferies Hold BuyDowngradeMay 1, 2017
Guggenheim Buy BuyMaintainJan 4, 2017
FBR Capital Sector Perform Sector PerformMaintainSep 7, 2016
BTIG Research Buy BuyMaintainSep 7, 2016
BTIG Buy BuyMaintainSep 7, 2016
Cross Research Hold BuyDowngradeJul 29, 2016
Maxim Group Buy NeutralUpgradeJun 7, 2016
Brean Capital Buy BuyMaintainApr 28, 2016
Pacific Crest Sector Weight OverweightDowngradeApr 19, 2016
Summit Research Partners Buy BuyMaintainMar 28, 2016
Sterne Agee CRT Buy BuyMaintainSep 28, 2015
Keybanc Overweight OverweightMaintainJul 30, 2015
CLSA Outperform UnderperformUpgradeJul 30, 2015
Rhino Trading Buy BuyMaintainJun 16, 2014
S&P Capital IQ Sell HoldDowngradeJan 23, 2014
FBN Securities Perform Sector PerformMaintainOct 25, 2013
PiperJaffray Overweight OverweightMaintainJul 8, 2013
Lazard Buy BuyMaintainAug 9, 2012
Bank oferica Neutral NeutralMaintainApr 27, 2012
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Named analyst price targets

Upside is calculated against the persisted previous close $448.17. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
Morgan StanleyAnalyst unavailable$676$460.47 +50.8%Aug 6, 2026
Robert W. BairdAnalyst unavailable$630$466.24 +40.6%Aug 6, 2026
Mizuho SecuritiesAnalyst unavailable$590$519.17 +31.6%Aug 6, 2026
UBSTimothy Arcuri$525$519.17 +17.1%Aug 6, 2026
UBSAnalyst unavailable$560$558.36 +25.0%Jul 13, 2026
Wells FargoAaron Rakers$730$578.05 +62.9%Jul 10, 2026
SusquehannaMehdi Hosseini$500$550.15 +11.6%Jul 8, 2026
Cantor FitzgeraldAnalyst unavailable$900$586.45 +100.8%Jun 29, 2026
Melius ResearchAnalyst unavailable$1,050$586.45 +134.3%Jun 29, 2026
Morgan StanleyErik Woodring$650$562.92 +45.0%Jun 15, 2026
Mizuho SecuritiesAnalyst unavailable$685$511.72 +52.8%Jun 8, 2026
Wells FargoAaron Rakers$575$531.21 +28.3%Jun 1, 2026
BarclaysTom O'Malley$620$524.65 +38.3%May 27, 2026
Evercore ISIAnalyst unavailable$575$484.28 +28.3%May 26, 2026
JefferiesAnalyst unavailable$575$484.28 +28.3%May 26, 2026
Mizuho SecuritiesVijay Rakesh$550$465.26 +22.7%May 6, 2026
Robert W. BairdAnalyst unavailable$450$431.52 +0.4%May 4, 2026
Goldman SachsAnalyst unavailable$400$426.22 -10.7%May 1, 2026
Cantor FitzgeraldAnalyst unavailable$660$433.43 +47.3%May 1, 2026
Mizuho SecuritiesAnalyst unavailable$470$437.01 +4.9%May 1, 2026
Evercore ISIAnalyst unavailable$500$442.69 +11.6%May 1, 2026
UBSAnalyst unavailable$375$434.52 -16.3%May 1, 2026
Wells FargoAaron Rakers$500$434.52 +11.6%May 1, 2026
Morgan StanleyAnalyst unavailable$488$434.52 +8.9%May 1, 2026
BarclaysTom O'Malley$450$434.52 +0.4%May 1, 2026
UBSAnalyst unavailable$500$404 +11.6%Apr 27, 2026
UBSTimothy Arcuri$350$374.11 -21.9%Apr 21, 2026
Evercore ISIAnalyst unavailable$410$367.42 -8.5%Apr 20, 2026
Evercore ISIAnalyst unavailable$378$338.78 -15.7%Apr 8, 2026
SusquehannaMehdi Hosseini$285$260.19 -36.4%Feb 6, 2026
Mizuho SecuritiesAnalyst unavailable$340$290.24 -24.1%Feb 4, 2026
New StreetAnalyst unavailable$250$290.24 -44.2%Feb 3, 2026
Goldman SachsJames Schneider$250$290.24 -44.2%Feb 3, 2026
Truist FinancialAnalyst unavailable$310$287.39 -30.8%Feb 3, 2026
Argus ResearchJim Kelleher$300$295 -33.1%Feb 3, 2026
Robert W. BairdAnalyst unavailable$310$259.94 -30.8%Feb 2, 2026
Mizuho SecuritiesAnalyst unavailable$325$278.41 -27.5%Jan 30, 2026
UBSAnalyst unavailable$306$278.41 -31.7%Jan 30, 2026
Cantor FitzgeraldAnalyst unavailable$325$278.41 -27.5%Jan 30, 2026
UBSAnalyst unavailable$285$278.41 -36.4%Jan 30, 2026
BarclaysTom O'Malley$325$278.41 -27.5%Jan 30, 2026
Morgan StanleyErik Woodring$306$278.41 -31.7%Jan 30, 2026
Goldman SachsJames Schneider$220$278.41 -50.9%Jan 30, 2026
Mizuho SecuritiesAnalyst unavailable$265$240.85 -40.9%Jan 27, 2026
Morgan StanleyAnalyst unavailable$260$235.29 -42.0%Jan 22, 2026
UBSAnalyst unavailable$230$221.51 -48.7%Jan 20, 2026
Evercore ISIAnalyst unavailable$230$221.51 -48.7%Jan 16, 2026
SusquehannaAnalyst unavailable$205$222.1 -54.3%Jan 16, 2026
BarclaysTom O'Malley$240$215 -46.4%Jan 15, 2026
Wells FargoAaron Rakers$260$215 -42.0%Jan 15, 2026
Goldman SachsJames Schneider$165$187.68 -63.2%Jan 9, 2026
Mizuho SecuritiesAnalyst unavailable$240$187.68 -46.4%Jan 9, 2026
Morgan StanleyAnalyst unavailable$228$174.58 -49.1%Dec 17, 2025
Mizuho SecuritiesVijay Rakesh$180$174.58 -59.8%Dec 17, 2025
Cantor FitzgeraldAnalyst unavailable$250$173.98 -44.2%Dec 16, 2025
SusquehannaAnalyst unavailable$135$163.12 -69.9%Nov 6, 2025
Goldman SachsAnalyst unavailable$148$144.68 -67.0%Oct 31, 2025
Cantor FitzgeraldAnalyst unavailable$200$147.41 -55.4%Oct 31, 2025
Robert W. BairdTristan Gerra$180$155.17 -59.8%Oct 31, 2025
Wells FargoAnalyst unavailable$180$138.13 -59.8%Oct 31, 2025
UBSMunjal Shah$145$138.13 -67.6%Oct 31, 2025
BarclaysTom O'Malley$200$138.13 -55.4%Oct 31, 2025
UBSTimothy Arcuri$135$126.2 -69.9%Oct 20, 2025
Mizuho SecuritiesAnalyst unavailable$160$125.92 -64.3%Oct 17, 2025
Evercore ISIAnalyst unavailable$190$115.42 -57.6%Oct 13, 2025
Wells FargoAnalyst unavailable$150$115.42 -66.5%Oct 13, 2025
Morgan StanleyAnalyst unavailable$171$106.88 -61.8%Sep 29, 2025
Wells FargoAnalyst unavailable$95$74.25 -78.8%Jul 31, 2025
BarclaysTom O'Malley$50$43.95 -88.8%May 1, 2025
Cantor FitzgeraldAnalyst unavailable$65$41.7 -85.5%Mar 7, 2025
Mizuho SecuritiesVijay Rakesh$82$63.26 -81.7%Jan 3, 2025
CitigroupAsiya Merchant$85$62.61 -81.0%Sep 10, 2024
Evercore ISIAmit Daryanani$85$61.51 -81.0%Aug 15, 2024
SusquehannaMehdi Hosseini$88$77.1 -80.4%Jun 11, 2024
Mizuho SecuritiesVijay Rakesh$90$75.51 -79.9%May 31, 2024
Argus ResearchJim Kelleher$88$69.74 -80.4%Apr 29, 2024
Goldman SachsToshiya Hari$76$73.9 -83.0%Apr 12, 2024
SusquehannaMehdi Hosseini$83$72.65 -81.5%Apr 10, 2024
Mizuho SecuritiesVijay Rakesh$80$72.95 -82.1%Apr 9, 2024
Rosenblatt SecuritiesKevin Cassidy$115$70.54 -74.3%Apr 5, 2024
Evercore ISIAmit Daryanani$80$68.15 -82.1%Mar 26, 2024
BarclaysTim Long$65$52.23 -85.5%Jan 16, 2024
Deutsche BankSidney Ho$65$52.23 -85.5%Jan 16, 2024
Rosenblatt SecuritiesKevin Cassidy$38$38.97 -91.5%Oct 30, 2023
Mizuho SecuritiesVijay Rakesh$45$42.58 -90.0%Aug 1, 2023
SusquehannaMehdi Hosseini$38$32.98 -91.5%May 9, 2023
Craig-HallumAnalyst unavailable$60$42.44 -86.6%Feb 1, 2023
Goldman SachsAnalyst unavailable$31$35.83 -93.1%Dec 15, 2022
Mizuho SecuritiesVijay Rakesh$38$36.03 -91.5%Nov 29, 2022
Craig-HallumCraig Hallum Craig-Hallum$50$33.72 -88.8%Oct 17, 2022
Wells FargoAaron Rakers$75$35.03 -83.3%Sep 21, 2022
Mizuho SecuritiesVijay Rakesh$40$35.54 -91.1%Sep 21, 2022
Rosenblatt SecuritiesKevin Cassidy$35$37.03 -92.2%Sep 16, 2022
Rosenblatt SecuritiesKevin Cassidy$45$47.97 -90.0%Aug 8, 2022
CitigroupAnalyst unavailable$60$47.09 -86.6%Aug 8, 2022
Stifel NicolausAnalyst unavailable$70$47.09 -84.4%Aug 8, 2022
Deutsche BankSidney Ho$64$47.72 -85.7%Jul 27, 2022
Mizuho SecuritiesVijay Rakesh$68$45.43 -84.8%Jun 29, 2022
Deutsche BankSidney Ho$63$49.24 -85.9%Apr 25, 2022
Wells FargoAnalyst unavailable$70$48.55 -84.4%Apr 19, 2022
Stifel NicolausPatrick Ho$85$46.34 -81.0%Apr 16, 2022
SusquehannaMehdi Hosseini$65$46.34 -85.5%Apr 14, 2022
Goldman SachsToshiya Hari$52$45.3 -88.4%Mar 12, 2022
CitigroupJim Suva$75$49.9 -83.3%Jan 28, 2022
Cowen & Co.Karl Ackerman$60$49.9 -86.6%Jan 28, 2022
BarclaysThomas O'Malley$60$49.9 -86.6%Jan 28, 2022
Evercore ISIC J Muse$75$55.73 -83.3%Dec 13, 2021
Bank of America SecuritiesWamsi Mohan$77$52.29 -82.8%Oct 29, 2021
WedbushMatt Bryson$70$52.29 -84.4%Oct 29, 2021
Wells FargoAaron Rakers$80$52.29 -82.1%Oct 29, 2021
Robert W. BairdTristan Gerra$75$52.29 -83.3%Oct 29, 2021
Fox AdvisorsSteven Fox$85$68.76 -81.0%Aug 6, 2021
Craig-HallumChristian Schwab$101$67.07 -77.5%Aug 5, 2021
J.P. MorganHarlan Sur$88$67.07 -80.4%Aug 5, 2021
Argus ResearchJim Kelleher$84$67.28 -81.3%May 4, 2021
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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

All WDC earnings

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Sources

  1. Earnings call transcript and parsed analysis · 2026-08-07T21:15:39.606252+00:00
  2. FN2 earnings calendar · 2026-09-09T01:23:14.388487+00:00
  3. Polygon adjusted daily market bars · 2026-09-22T07:40:51.259890+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-09-22T07:40:51.257166+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 . For educational purposes only; not investment advice.