WDC

AI Research

$4B Buyback Authorized + Q2 Revenue +25% YoY → $20+ EPS Target Set at Investor Conference

Western Digital's Q2 FY2026 results showed EPS of $2.13 and revenue of $3.1 billion, exceeding forecasts by 11.52% and 6.16% respectively, with revenue up 25% year-over-year driven by AI-related memory chip demand. The board approved $4 billion in additional share repurchases, and management set a long-term target of over $20 in earnings per share at a recent investor conference, signaling confidence in sustained AI-driven demand. Gross margin improved to 46.1% with operating income exceeding $1 billion and free cash flow of $653 million, though the stock's 20 analyst Buy consensus at a $321 price target implies 7% upside from $300.63.