Western Digital Q4 2026: Strong Beat, Softer Stock, and a Bold Q1 Outlook
As seen on the 24/7 Wall St. homepage on August 5, 2026.
The AI storage bull case is being tested: shares sold off right after the release despite a fifth straight EPS beat. Non-GAAP gross margin hit 54.4% as a pure-play hard drive maker, with guidance for $4.00 in Q1 EPS on roughly $4.1 billion of revenue.
Continue ReadingShow less
Western Digital reported Q4 2026 earnings of $3.56 per share, topping the $3.29 consensus estimate by roughly 8%, while revenue of $3.75 billion came in about 1.3% ahead of expectations. That marks five consecutive quarters of beating EPS estimates, a streak that spans the company's transition into a pure-play hard drive maker and reflects a meaningful ramp in profitability over that period.
Non-GAAP gross margin reached 54.4% in the quarter, a figure that underscores how much pricing power and operational efficiency Western Digital has captured in the hard drive market, particularly as AI infrastructure buildouts drive demand for high-capacity storage. Despite those results, shares sold off immediately after the release, suggesting investors had already priced in a strong outcome or had reservations about the durability of the trend.
Sponsored
_________________________________
What's Your Number...?
Here's a question most people 5y from retirement can't answer: at your current savings rate, how much do you need, and how long will it actually last? A good advisor can put a date on that in a single meeting. SmartAsset's free quiz matches you with up to three fiduciary advisors serving your area, so you can get YOUR retirement number now (sponsor)
__________________________________________
The company guided for Q1 EPS of $4.00 on roughly $4.1 billion in revenue, a sequential step up that will serve as the next concrete test of whether the AI storage demand story has further room to run. How the stock settles in the days following the earnings report, relative to that forward guidance, is what investors will be watching closely.
Mentioned: WDC