Western Digital Reports Significant Growth and Dividend Increase
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: Fool
- Profitability Milestone: In its fiscal third quarter of 2026, Western Digital reported revenue of $3.34 billion, a 45% year-over-year increase, marking a significant acceleration from the previous quarter's 25%, indicating a strong financial turnaround.
- Gross Margin Breakthrough: The company's non-GAAP gross margin reached 50.5% for the first time, up from 40% a year ago, reflecting effective cost management and pricing strategies that enhance profitability.
- Dividend Policy Strengthened: The board approved a 20% increase in the quarterly cash dividend to $0.15 per share, following a 25% raise last October, resulting in a total dividend increase of 50% in just six months, showcasing confidence in future cash flows.
- Optimistic Outlook: Management anticipates fourth-quarter revenue of approximately $3.65 billion, representing about 40% year-over-year growth, with adjusted gross margins expected between 51% and 52%, underscoring strong demand driven by AI workloads.
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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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