Western Digital shares drop 45% from recent high as results and guidance stay strong
AI Market Summary
Western Digital has fallen ~45% from recent highs, but reported strong fiscal 2026 fundamentals: revenue +36% to $12.9B, gross margin up to 49.1%, operating margin to 37.3%, EPS more than doubled to $10.22, and free cash flow of $3.5B. Management guided to ~45% YoY next-quarter revenue growth and 55%-56% gross margin, citing AI-driven storage demand as a structural tailwind.
Impact level
● Low
Affected assets
NCSKWDC2USD/USDT+4.96%
AI Insight · NCSKWDC2USD/USDTAI Insight
▲ Bullish
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Western Digital shares have fallen 45% from their recent high, but the company’s fundamentals remain solid. Revenue climbed 36% to $12.9 billion, while gross margin rose to 49.1% and operating margin widened 1,290 basis points to 37.3%. EPS more than doubled to $10.22 and free cash flow reached $3.5 billion. Management forecast next-quarter revenue of about $4.1 billion, roughly 45% YoY growth, with gross margin of 55% to 56% and EPS of about $4 versus $1.78 a year earlier.
