Western Digital CorporationNasdaq: WDC
Information Technology · Technology Hardware, Storage & Peripherals
$430.70
-0.88%
Vol: 14.5M
Research Digest
Friday, May 1, 2026
Western Digital reported Q3 2026 earnings beat with 45% revenue growth and 97% EPS growth YoY, raising dividend 20%
WDC delivered exceptional Q3 fiscal 2026 results with non-GAAP EPS of $2.72 (up 97% YoY) and revenue of $3.34 billion (up 45%), exceeding guidance. Gross margins exceeded 50% driven by AI-driven data economy demand. The company raised its quarterly dividend to $0.15 per share (+20%). Despite strong fundamentals, shares fell 3.22% on April 28 due to market volatility and competitive pressures in the HDD sector. Long-term customer agreements extend through 2028-2029, supporting visibility.
Previous Market Intelligence
13 daysApr 30Western Digital reports FY Q3 earnings on April 30 with expectations of strong AI-driven growth and $387B mean price target from analystsPositive▶
Western Digital surged 4.66% on strong analyst sentiment around AI-driven storage demand as Q3 earnings were released April 30. Analysts expect $2.39 EPS (up from $1.36 YoY) and $3.25B revenue guidance. Morgan Stanley raised price target to $380 from $369, and BofA raised it to $495 from $415, maintaining Overweight ratings. WDC is up 135% year-to-date with mean analyst price target of $387.27, indicating significant upside potential. The company authorized $4B in additional buybacks in February. Key risks include commodity price volatility and execution on data center ramp.
Apr 29Western Digital jumps 10% as Seagate earnings ease AI storage demand fears; Q3 FY26 earnings April 30Positive▶
Western Digital rallied 10% on April 29 after Seagate's strong earnings eased concerns about AI storage demand sustainability. WDC stock is up 127% YTD and 113% since start of 2026, driven by high-capacity HDD shortages through 2026 amid AI data center demand. Company is scheduled to report Q3 FY26 results on April 30 with consensus expectations of $2.40 EPS and $3.25B revenue (+42% YoY). Analysts are extremely bullish: 15 Buys / 3 Holds consensus, with PT increases from BofA ($495) and Cantor Fitzgerald ($500) citing tight HDD supply.
Apr 16Western Digital raised price targets by Citi (+$70 to $405) and Evercore (+$68 to $378); Q3 FY2026 earnings scheduled for April 30Positive▶
Western Digital received significant analyst upgrades with Citi raising its price target to $405 from $335 and Evercore ISI raising guidance to $378 from $310, citing strong supply/demand for AI storage and improving pricing dynamics. The company is set to announce Q3 FY2026 financial results on April 30, 2026. WDC manufacturing capacity is booked through 2026 under multi-year agreements with cloud hyperscalers for 32TB and 40TB hard drives used in AI-oriented data infrastructure builds. The storage sector is back in the spotlight as the simplest, most efficient play on the structural memory shift.
Apr 14Western Digital primed for AI growth with 40TB drives in H2 2026; Q3 earnings April 30Positive▶
40TB UltraSMR HDD drives in qualification for H2 2026. Firm orders from top 7 customers through 2027. Citi raised PT to $405 Buy. Q3 results April 30.
Apr 13Western Digital reaches 52-week high; AI storage demand drives bullish outlook with Evercore $378 targetPositive▶
Western Digital reached new 52-week high of $346.04 on strong AI/datacenter demand. CEO Irving Tan highlighted hard drives as strategic element of AI and cloud stack with firm multi-year purchase orders extending into 2027. Shipping 32-terabyte drives with 40-terabyte launches planned for H2 2026. Stock rose 14% this week. Evercore ISI raised price target to $378 from $310 with Outperform rating.
Apr 10Western Digital surges 10% on analyst upgrade and strong AI storage demand projections.Positive▶
Western Digital surged over 10% on Bernstein upgrade citing AI-driven storage demand. Morgan Stanley raised price target. Q3 FY2026 earnings April 30 expects $2.23 EPS (+74.2% YoY) and $3.2B revenue (+40% YoY). Secured multi-year HDD supply agreements. Achieved World's Most Ethical Companies recognition.
Apr 9Western Digital surges 8-11% on Bernstein upgrade and Evercore PT hike to $378 amid AI HDD demandPositive▶
Western Digital shares jumped 8.47% to as much as 11.3% after Bernstein upgraded to Outperform from Market Perform, calling the recent pullback an attractive entry point. Evercore ISI raised its price target to $378 from $310 with an Outperform rating, while Morgan Stanley also raised its target citing robust HDD demand. The catalysts: surging AI data center storage demand and better pricing outlook for hard disk drives. Consensus rating across 22 analysts is Buy. Risk: stock is up 953% over the past year, raising valuation concerns if AI capex moderates.
Apr 8Morgan Stanley raises Western Digital price target to $380; stock up 3.2% on April 6 amid AI storage demandPositive▶
Western Digital benefited from a Morgan Stanley price target increase to $380 from $369 on April 6, 2026, reinforcing the bullish narrative around AI-driven data center storage demand for high-capacity hard disk drives. The stock rose 3.2% on April 6. Bernstein also doubled its price target to $340, citing AI-driven market benefits. Western Digital is strategically positioned in the data infrastructure ecosystem with 57.15% YTD gains and 560% gain over the past 52 weeks. The company reported strong earnings with $20+ EPS guidance and announced a rare earth recovery initiative partnership with Microsoft. 14 analyst firms have issued buy ratings with zero sell ratings.
Apr 7Morgan Stanley raises WDC price target to $380 on strong HDD demand; Bernstein upgrades to OutperformPositive▶
Western Digital shares jumped 4.5% after Morgan Stanley raised its price target to $380 from $368, maintaining Overweight rating, citing robust demand for hard disk drives from data center operators. Morgan Stanley notes supply could remain tight through 2028, creating potential shortages. Bernstein upgraded WDC to Outperform from Market Perform on March 31, viewing recent pullback as attractive entry point, driven by strong AI-driven data center storage demand. WDC is up 64.2% year-to-date and trades near 52-week high of $316.93. Stock trades at $303.56 with a $4B share buyback plan. Median analyst price target is $257, implying downside.
Apr 6Western Digital upgraded to Outperform on AI data center storage demand; shares jump 11.3% on Bernstein upgradePositive▶
Western Digital shares jumped 11.3% after Bernstein upgraded stock to Outperform from Market Perform, flagging recent pullback as attractive entry point. Strong demand for AI-driven data center storage with $4 billion share buyback plan. Q4 revenue of $9.52B with gross margin of 42.7%. Recent collaboration with Microsoft on innovative recycling process addresses supply chain pressures. Partnership with Open Quantum Design on error correction technology. Strong FY2026 outlook expected with rising margins in cloud and flash businesses.
Apr 3Bernstein upgrades to Outperform, doubles PT to $340 on AI storage demand; stock surges 11% on durable hyperscaler contracts.Positive▶
Western Digital surged 10% to $297.73 on April 1, 2026, following Bernstein's upgrade to Outperform with doubled $340 price target. The analyst dismissed fears over Google's compression algorithm, citing durable AI/data-center demand. Q4 earnings beat expectations with $2.13 EPS and $3.02B revenue. Stock up 58.5% YTD.
Apr 2Western Digital surged 10% on Bernstein upgrade to Outperform citing strong AI-driven storage demand; fiscal Q3 2026 earnings expected April 30.Positive▶
Western Digital shares surged over 10% on April 2 to $297.73 following Bernstein upgrade from Market Perform to Outperform, citing robust demand for AI-driven data center storage. Analysts expect exceptional fiscal Q3 2026 earnings on April 30 with revenue forecast ~$3.2 billion, a 40% increase versus $2.29 billion last year. Strong multi-year HDD supply agreements with hyperscalers enhance visibility. Stock gained 58.5% YTD and holds average analyst recommendation of 1.28 with 21 of 25 firms rating Strong Buy. Recently re-launched G-Drive brand for content creator and creative professional storage.
Apr 1Bernstein upgraded WDC to Outperform with $340 price target after recent selloff; stock down 16% on Google TurboQuant fears.Mixed▶
Western Digital faces headwinds as memory stocks sold off following Google's TurboQuant compression algorithm concerns. Bernstein upgraded to Outperform, calling the pullback an attractive entry point. Morgan Stanley named WDC a 2026 Top Pick. April earnings expected April 29 with EPS projected at $2.30 vs. $1.36 a year ago.
Sector Peers
| Company | Price | Day | 1M | Fwd P/E | Beta | Mkt Cap |
|---|---|---|---|---|---|---|
| AAPLAPPLE | $280.06 | +3.21% | +4.8% | 28.9x | 1.11 | $3.98T |
| SNDKSANDISK | $1,182.72 | +7.86% | +51.3% | 9.3x | — | $161.8B |
| STXSEAGATE | $726.74 | +7.88% | +48.6% | 25.6x | 1.63 | $150.9B |
| WDCWESTERN | $430.70 | -0.88% | +42.9% | 29.7x | 1.83 | $148.6B |
| DELLDELL | $209.77 | +0.39% | +20.6% | 14.2x | 0.95 | $135.9B |
| HPEHEWLETT | $28.50 | -0.96% | +17.1% | 10.6x | 1.22 | $38.2B |
Key Fundamentals
RSI (14-Day)
52-Week Range
Moving Averages
Price above both MAs — bullish structure.