Western Digital (WDC) Q3 2026 Earnings
How Did WDC Stock React to Q3 2026 Earnings?
S&P 500 over the same 30 days: +4.66%.
Did WDC Beat Earnings? Q3 2026 Results
Yes. Western Digital reported Q3 2026 earnings of $2.72 a share on Apr 30, 2026, beating the $2.39 consensus estimate by 13.8%. Revenue was $3.3B against a $3.2B estimate.
Western Digital delivered a standout fiscal third quarter 2026, beating Wall Street expectations on both the top and bottom lines and extending its consensus EPS beat streak to four consecutive quarters. The data storage company posted non-GAAP diluted EPS of $2.72, clearing the $2.39 consensus estimate by 13.71%, while revenue of $3.34 billion edged past the $3.25 billion forecast by 2.75% and surged 45.5% year over year. The primary engine behind the quarter's strength was a dramatic gross margin expansion, with non-GAAP gross margin crossing 50% for the first time in recent memory, reaching 50.5% as AI-driven demand for hard disk drives tightened supply and lifted pricing across the board. Analysts have pointed to a structural supply-demand imbalance in the HDD market as a durable tailwind for the company. Looking ahead, Western Digital guided fiscal Q4 revenue to approximately $3.65 billion and non-GAAP EPS of $3.25, plus or minus $0.15, signaling continued momentum as AI workloads keep generating record volumes of stored data.
- Strong sequential and year-over-year revenue growth across all end markets
- Gross margin exceeded 50% reflecting innovation delivery across expanding customer set
- AI workload demand driving persistent data storage on HDDs
- Non-GAAP operating margin expanded 1,260 basis points year-over-year to 38.6%
“WD started calendar year 2026 with great execution, driving strong sequential and year-over-year revenue growth in all our end markets, while expanding gross and operating margins. Gross margin exceeded 50%, reflecting our continued delivery of innovation across an expanding set of customers. Given our confidence in the durability of our business, we are also announcing a 20% increase in the quarterly cash dividend on the company's common stock to $0.15 per share.”
Western Digital CEO, on the earnings call
What Was Western Digital's Outlook in Q3 2026?
For fiscal Q4 2026, WD expects revenue of approximately $3.65 billion (+/- $100 million), implying 36% to 44% year-over-year growth. Non-GAAP gross margin is expected in the range of 51% to 52%. Non-GAAP operating expenses are expected between $385 million and $395 million. Non-GAAP diluted EPS is expected at $3.25 (+/- $0.15) on approximately 385 million diluted shares. The non-GAAP tax rate is expected to be approximately 16%. CFO Kris Sennesael noted that business visibility is extending with momentum building across all end markets driven by innovation, strong customer engagements, and disciplined execution.
WDC YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $3.3B | $2.3B | +45.5% |
| Gross Profit | $1.7B | $912.0M | +83.8% |
| Operating Income | $1.2B | $760.0M | +56.6% |
| Net Income | $3.2B | $524.0M | +511.6% |
WDC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.