Companies /Technology

Western Digital Corp

NASDAQ: WDC Computer Hardware
$450.55
▼ $8.90 (−1.94%) today
Markets closed · 9:13pm ET

Q2 2026 Earnings

Reported Jan 29, 2026, 4:11pm ET · SEC source
$2.13
Beat +10.36%
EPS · est. $1.93
$3.0B
Beat +2.79%
Revenue · est. $2.9B
+5.4%
Beating market
WDC vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−12%−6%0+6%Jan 29Jan 30report 4:11pm ETearnings−0.5%−11.0%
−12%−6%0+6%Jan 29Jan 30earnings−0.5%−11.0%
WDC −11.0%S&P 500 −0.5%
−12%−6%0+6%Jan 29Jan 30report 4:11pm ETearnings−1.4%−11.0%
−12%−6%0+6%Jan 29Jan 30earnings−1.4%−11.0%
WDC −11.0%NASDAQ −1.4%
−15%−10%−5%0Jan 28Feb 6report 4:11pm ETearnings−0.6%−0.0%
−15%−10%−5%0Jan 28Feb 6earnings−0.6%−0.0%
WDC −0.0%S&P 500 −0.6%
−15%−10%−5%0Jan 28Feb 6report 4:11pm ETearnings−3.2%−0.0%
−15%−10%−5%0Jan 28Feb 6earnings−3.2%−0.0%
WDC −0.0%NASDAQ −3.2%
−10.12%
Day of report
+7.99%
Next session
+12.93%
One week
+4.42%
30 days

S&P 500 over the same 30 days: −0.99%.

Did WDC Beat Earnings? Q2 2026 Results

Western Digital delivered a convincing fiscal second quarter 2026, with the HDD-pure-play posting non-GAAP diluted EPS of $2.13 against a consensus estimate of $1.93, a beat of 10.47%, while revenue of $3.02 billion edged past the $2.94 billion estimate by 2.79%. The reported revenue figure reflects a 29.6% year-over-year decline, a number that demands context: Western Digital completed the separation of its Flash business into Sandisk Corporation in February 2025, meaning comparisons now exclude an entire business segment. <a href="https://247wallst.com/investing/2026/01/29/live-will-western-digital-rally-after-q2-earnings-tonight/">Investors watching closely</a> saw the company's first full quarter as an HDD-focused entity produce non-GAAP gross margin of 46.1%, up 770 basis points year over year, driven by strong demand for high-capacity drives in AI-oriented data centers. Management paired the solid results with confident guidance, targeting roughly $3.20 billion in Q3 revenue and non-GAAP EPS of $2.30, citing continued data center adoption of next-generation high-capacity storage as the primary tailwind heading into the second half of fiscal 2026.

Key Takeaways
  • AI-driven data economy demand for high-capacity HDDs
  • Data center demand strength
  • Gross margin expansion driven by product mix and pricing
  • Disciplined execution and supply management
  • Returned over 100% of free cash flow to shareholders

“Western Digital's strong performance this quarter reflects our disciplined execution to meet demand in the AI-driven data economy, and the confidence our customers place in our ability to deliver reliable, high-capacity HDDs at scale.”

Western Digital CEO, on the earnings call

Forward Guidance & Outlook

For fiscal Q3 2026, Western Digital expects revenue of approximately $3.2 billion (+/- $100 million), implying roughly 40% year-over-year growth at the midpoint. Non-GAAP gross margin is guided to 47%-48%, non-GAAP operating expenses of $380-$390 million, non-GAAP diluted EPS of $2.30 (+/- $0.15), and a non-GAAP tax rate of approximately 16%. Management cited continued data center demand and adoption of high-capacity drives as key growth drivers.

WDC YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$2.0B$4.0B$4.3B$3.0BRevenue$1.5B$1.4BGross Profit$852.0M$908.0MOperating Income$594.0M$1.8BNet Income
$0$2.0B$4.0BRevenueGross ProfitOperating IncomeNet Income

WDC Revenue by Segment

Cloud
Consumer
Client

Figures from SEC filings and company reports. Not investment advice.