TLDR
- WDC reported Q3 FY26 EPS of $2.72, beating estimates of $2.39, with revenue of $3.34B — up 45% year over year
- Multiple analysts raised price targets, with Cantor Fitzgerald setting a Street-high of $660
- Stock is up over 160% year-to-date and trades around $432
- Average analyst price target of $488.24 implies ~12% upside; 14 of 17 analysts rate it a Buy
- Q4 2026 guidance set at $3.10–$3.40 EPS
Western Digital (WDC) delivered a strong fiscal Q3, and Wall Street took notice. The stock trades around $432, up over 160% year-to-date, near its 52-week high of $446.62.
Western Digital Corporation, WDC
The company reported adjusted EPS of $2.72, topping the $2.39 consensus estimate by $0.33. Revenue came in at $3.34 billion, up 45.5% year over year and ahead of the $3.25 billion Wall Street expected.
The quarter was driven largely by rising demand from AI-related data center infrastructure, with hard disk drive pricing moving higher both quarterly and annually.
Despite a brief dip after the April 30 earnings release, WDC bounced back roughly 2% in early Monday trading as analysts updated their outlooks.
Gross margins came in at 51.5%, well ahead of the 48.6% consensus, according to Mizuho. BofA Securities noted margins expanded 436 basis points quarter over quarter.
Analyst Price Target Upgrades
Cantor Fitzgerald’s C.J. Muse set the Street-high target at $660, up from $500, citing strong pricing, solid data center demand, improving margins, and progress in HAMR (heat-assisted magnetic recording) technology.
Bernstein’s Mark Newman raised his target from $340 to $590, pointing to the strong Q3 beat driven by HDD demand and pricing gains.
Citigroup lifted its target to $500 from $405, maintaining a Buy rating and highlighting continued AI-driven demand and stronger pricing visibility.
Robert W. Baird raised its target to $450 from $310 with an outperform rating. Barclays moved to $450 from $405. Mizuho set a $470 target. UBS nudged its neutral-rated target to $375 from $350.
Argus reiterated its Buy rating with a $500 price target, noting the stock has delivered an 870% return over the past year.
The consensus across 19 analysts with Buy ratings and four with Hold ratings puts the average target at $488.24 — implying around 12% upside from current levels.
HAMR and Next-Gen Products
Mizuho’s Vijay Rakesh, ranked #4 out of over 12,000 analysts on TipRanks with a 74% success rate, raised his target from $400 to $470.
Rakesh highlighted that WDC’s high-bandwidth HDD products — offering 2–4x the performance of traditional drives — are already in testing with two customers.
He also noted that next-generation HAMR technology deployment is now expected in the first half of 2027, slightly ahead of prior guidance.
For Q4 2026, Western Digital guided EPS of $3.10–$3.40 and revenue of $3.65 billion for the June quarter.
Institutional ownership stands at 92.51%, with large new positions from WCM Investment Management and Norges Bank established in recent quarters.
Insiders sold approximately 72,711 shares valued at around $19.2 million over the past 90 days, though insiders hold just 0.18% of total stock.
The company carries a market cap of $146.5 billion, a P/E ratio of 25.79, and a debt-to-equity ratio of 0.34.
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