Western Digital Reports Strong Revenue Growth Amid AI Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 09 Jan 26
Source: Business Insider
Western Digital Corp's stock rose by 5.16% as it crossed above the 5-day SMA, reflecting positive market conditions with the Nasdaq-100 up 1.07% and the S&P 500 up 0.76%.
This surge is attributed to Western Digital's reported 27% revenue growth in Q1 FY2026, driven by strong demand in the AI data center market, which has solidified its market leadership. The company's non-GAAP earnings per share increased by 137%, indicating significant profitability improvements and strong potential for sustained growth.
The robust demand for data storage solutions, particularly in AI applications, positions Western Digital favorably for future expansion, especially as global data generation is expected to triple by 2028.
Analyst Views on WDC
Wall Street analysts forecast WDC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for WDC is 189.74 USD with a low forecast of 135.00 USD and a high forecast of 250.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 240.850
Low
135.00
Averages
189.74
High
250.00
Current: 240.850
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. It delivers hard disk drives (HDD) solutions for everyone from students, gamers, and home offices to enterprises and public clouds. The Company manufactures, markets, and sells data storage devices and solutions in the United States and in foreign countries through its sales personnel, dealers, distributors, retailers, and subsidiaries. Its portfolio of technology and products addresses multiple end markets: Cloud, Client, and Consumer. Cloud is comprised primarily of products for public or private cloud environments and end customers. Through the Client end market, it provides its original equipment manufacturer (OEM) and channel customers a range of hard drive solutions across personal computer, mobile, gaming, automotive, virtual reality headsets, at-home entertainment, and industrial spaces. The Consumer end market offers a range of retail and other end-user products.
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.
