Western Digital (WDC)
NASDAQInformation TechnologyComputer HardwareSnapshot 2026-07-08
$550.30+3.42%
Close 2026-07-08 · 1-day change
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Western Digital's sales grew 45% last quarter. They aim for $3.65 billion next quarter. Profit margin rose to 50.5% last quarter. AI and cloud demand support growth.
Memory market weakness and Apple competition may hurt sales and margins. Recent stock drop shows market worries. Capital raises could dilute shares.
The market expects 52% revenue growth next year. Our fair value is 48% below the Street median. We see risk in margin and competition.
Breaks if: margin falls more than 5% below guidance midpoints
Breaks if: gross margin falls below 44.5% in fiscal Q4 2026
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Target a non-GAAP gross margin of 51.5% for the fiscal fourth quarter of 2026.
Stated in 2 of last 2 quarters. Non-GAAP gross margin increased from 46.1% in 2026-Q2 to 50.5% in 2026-Q3, indicating progress towards the 51.5% target for 2026-Q4. The trajectory is delivering on the stated priority.
“CFO: 'We expect non-GAAP gross margin of 51.5% for the fiscal fourth quarter of 2026.'”
“CFO: 'Non-GAAP gross margin expected to be 47.5% for the fiscal third quarter of 2026.'”
Breaks if: significant dilutive equity issuance announced
Breaks if: revenue falls below $2.9 billion in fiscal Q4 2026
Aim to achieve revenue of $3.65 billion for the fiscal fourth quarter of 2026.
Stated in 2 of last 2 quarters. Revenue grew from $2.9 billion in 2026-Q2 to $3.34 billion in 2026-Q3, showing progress towards the $3.65 billion target for 2026-Q4. The trajectory is delivering on the stated priority.
“CFO: 'For our fiscal fourth quarter of 2026, we expect revenues of $3.65 billion.'”
“CFO: 'We expect revenues of $3.2 billion for the fiscal third quarter of 2026.'”