Western Digital Corporation (WDC) AI Stock Analysis

Western Digital Corporation is a developer, manufacturer, and distributor of data storage devices and solutions worldwide. The company provides hard disk drives (HDDs) and solid state drives (SSDs) for client devices such as PCs, gaming consoles, smart video systems, and set top boxes. It also offers embedded storage solutions for mobile devices, tablets, automotive systems, IoT, and industrial applications, alongside flash-based memory wafers. In enterprise markets, Western Digital sells helium hard drives, SSDs, and storage platforms to data centers and enterprise servers. Products are marketed under brands including Western Digital, SanDisk, and WD.

Western Digital generated revenue of $12.92B in FY2026, marking an increase of 35.7% following 50.7% growth to $9.52B in FY2025. Gross margin expanded to 48.9% in FY2026 from 38.8% in FY2025 and 22.2% in FY2023. Operating margin reached 34.5%, up from 24.5% in FY2025 and an operating margin of -8.8% in FY2023. Net income rose to $9.42B with an EPS of $10.10 in FY2026, compared to net income of $1.86B in FY2025 and net income of -$1.68B in FY2023. In the quarter ended June 30, 2026, quarterly revenue growth was 43.8% year-over-year, while quarterly earnings growth reached 984.1%.

As of June 30, 2026, Western Digital held $1.58B in cash and short-term investments against $1.05B in total debt, yielding net cash of $527.0M. The current ratio stood at 1.33, and the debt-to-equity ratio was 0.12 against shareholders' equity of $8.86B. In FY2026, the company generated $3.93B in operating cash flow and $3.51B in free cash flow. Cash deployment included $418.0M in capital expenditures, $2.59B in share buybacks, and $184.0M in dividends paid.

Western Digital trades at a trailing P/E of 12.3x and a forward P/E of 22.8x, both below the median of its Nasdaq-100 Technology peers at 43.3x and 25.7x, respectively. Its enterprise value to EBITDA ratio is 16.3x compared to the peer median of 32.8x, and its price-to-sales ratio is 9.6x versus the peer median of 12.4x. The stock returned 164.1% over the past year and 696.6% over five years, outperforming the S&P 500 (SPY) returns of 16.8% and 83.0% over the same periods.

Western Digital pays a quarterly dividend with an annual forward dividend of $0.60 per share, representing a dividend yield of 0.18%. The company has paid dividends for 2 consecutive years and maintains a payout ratio of 5.5%. Its annualized 5-year dividend growth rate is -15.5%, and the last ex-dividend date was September 8, 2026.

Western Digital has 17 Strong Buy, 4 Buy, and 5 Hold ratings from Wall Street analysts, with no Sell or Strong Sell ratings. The mean price target is $668.50, representing an upside of 101.4% above the last close of $332.00. For the fiscal year ending June 30, 2027, consensus estimates project revenue of $19.27B and an EPS of $20.53, reflecting 100.9% EPS growth. The company beat EPS estimates in each of the last 4 quarters, with its next earnings date scheduled for October 22, 2026.

This page is an AI-written research summary of Western Digital Corporation (WDC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: WDC income statement, WDC balance sheet, WDC key metrics, WDC analyst forecast, WDC chart. See the WDC stock overview for the latest quote and news.