Western Digital Reports 45% Revenue Growth in Q3
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: NASDAQ.COM
- Significant Revenue Growth: Western Digital reported $3.34 billion in revenue for its fiscal third quarter of 2026, marking a 45% year-over-year increase, which is a sharp acceleration from 25% in the previous quarter, indicating strong performance in the data storage market.
- Profitability Milestone: The company's non-GAAP gross margin exceeded 50% for the first time, reaching 50.5%, up from 40% a year ago and 46.1% in the prior quarter, demonstrating successful cost control and pricing strategies.
- Dividend Increase: The board approved a 20% increase in the quarterly cash dividend to $0.15 per share, reflecting confidence in future growth, marking the second hike in six months, resulting in a cumulative increase of 50%.
- Optimistic Future Outlook: Management expects fourth-quarter revenue of approximately $3.65 billion, representing about 40% year-over-year growth, with an adjusted gross margin forecasted between 51% and 52%, highlighting strong market potential driven by AI-related storage demands.
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Analyst Views on WDC
Wall Street analysts forecast WDC stock price to fall
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 531.180
Low
135.00
Averages
189.74
High
250.00
Current: 531.180
Low
135.00
Averages
189.74
High
250.00
About WDC
Western Digital Corporation is a developer, manufacturer and provider of data storage devices and solutions on hard disk drives (HDD) technologies. The Company manufactures, markets, and sells data storage devices and solutions through its sales personnel, dealers, distributors, retailers, and subsidiaries. Its portfolio of technology and products addresses end markets: Cloud, Client, and Consumer. Cloud is comprised primarily of products for public or private cloud environments and enterprise customers. Through the Client end market, the Company provides its original equipment manufacturer (OEM) and channel customers with a broad array of high-performance HDD solutions across desktops and notebooks. The Consumer end market offers a range of retail and other end-user products. Its product portfolio includes Internal HDD, Data Center Drives, Data Center Platforms, External Drives, Portable Drives, network-attached storage (NAS) for Home and Office, and Accessories.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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