Companies /Technology

Western Digital Corp

NASDAQ: WDC Computer Hardware
$450.55
▼ $8.90 (−1.94%) today
Markets closed · 9:24pm ET

Q3 2026 Earnings

Reported Apr 30, 2026, 4:07pm ET · SEC source
$2.72
Beat +13.81%
EPS · est. $2.39
$3.3B
Beat +2.75%
Revenue · est. $3.2B
+33.0%
Beating market
WDC vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−4%0+4%+8%Apr 30May 1report 4:07pm ETearnings+0.1%+4.9%
−4%0+4%+8%Apr 30May 1earnings+0.1%+4.9%
WDC +4.9%S&P 500 +0.1%
−4%0+4%+8%Apr 30May 1report 4:07pm ETearnings+0.9%+4.9%
−4%0+4%+8%Apr 30May 1earnings+0.9%+4.9%
WDC +4.9%NASDAQ +0.9%
0+7%+14%Apr 29May 8report 4:07pm ETearnings+2.5%+16.8%
0+7%+14%Apr 29May 8earnings+2.5%+16.8%
WDC +16.8%S&P 500 +2.5%
0+7%+14%Apr 29May 8report 4:07pm ETearnings+6.5%+16.8%
0+7%+14%Apr 29May 8earnings+6.5%+16.8%
WDC +16.8%NASDAQ +6.5%
−0.69%
Day of report
+2.51%
Next session
+11.23%
One week
+37.68%
30 days

S&P 500 over the same 30 days: +4.66%.

Did WDC Beat Earnings? Q3 2026 Results

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.

Key Takeaways
  • 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

Forward Guidance & Outlook

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

Q3 2026 vs Q3 2025 · SEC filings Q3 2025 Q3 2026
$0$1.0B$2.0B$3.0B$2.3B$3.3BRevenue$912.0M$1.7BGross Profit$760.0M$1.2BOperating Income$524.0M$3.2BNet Income
$0$1.0B$2.0B$3.0BRevenueGross ProfitOperating IncomeNet Income

WDC Revenue by Segment

Cloud
Consumer
Client

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