Western Digital (WDC) Q2 2026 Earnings
How Did WDC Stock React to Q2 2026 Earnings?
S&P 500 over the same 30 days: −0.99%.
Did WDC Beat Earnings? Q2 2026 Results
Yes. Western Digital reported Q2 2026 earnings of $2.13 a share on Jan 29, 2026, beating the $1.93 consensus estimate by 10.4%. Revenue was $3.0B against a $2.9B estimate.
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.
- 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
What Was Western Digital's Outlook in Q2 2026?
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
| Metric | Q2 2026 | Q2 2025 | Year over year |
|---|---|---|---|
| Revenue | $3.0B | $4.3B | −29.6% |
| Gross Profit | $1.4B | $1.5B | −9.0% |
| Operating Income | $908.0M | $852.0M | +6.6% |
| Net Income | $1.8B | $594.0M | +210.1% |
WDC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.