Western Digital Q3 revenue beats on AI-driven demand

Western Digital

30/04/2026 21:11

Overview

U.S. data storage hardware maker's fiscal Q3 revenue rose 45% yr/yr, beating analyst expectations

Adjusted EPS for fiscal Q3 beat analyst expectations

Company raised quarterly dividend by 20% to $0.15 per share

Outlook

Western Digital expects Q4 revenue of $3.65 bln, plus or minus $100 mln

Company sees Q4 non-GAAP gross margin between 51% and 52%

Western Digital expects Q4 non-GAAP EPS of $3.25, plus or minus $0.15

Result Drivers

AI-DRIVEN DEMAND - Co said demand for HDDs was fueled by growth in AI workloads, including training, inference, and agentic AI

INNOVATION AND EXECUTION - Co attributed margin expansion and revenue growth to innovation and strong execution across all end markets

CUSTOMER ENGAGEMENT - Co cited strong customer engagement and disciplined execution as supporting momentum across end markets

Company press release: ID:nBw6BQHC3a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$3.34 bln
$3.25 bln (17 Analysts)
Q3 Adjusted EPS
Beat
$2.72
$2.39 (19 Analysts)
Q3 EPS
$8.20
Q3 Net Income
$3.17 bln
Q3 Gross Margin
50.20%
Q3 Operating Income
$1.19 bln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 23 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the computer hardware peer group is "buy"

Wall Street's median 12-month price target for Western Digital Corp is $350.00, about 15.2% below its April 29 closing price of $412.76

The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 20 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)