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Sentiment · FY2026 Q4
Western Digital posted Q3 revenue of $3.3B up 45% year-over-year as cloud revenue surged 48% on strong nearline demand, with gross margin breaking 50% on pricing and mix shift. The balance sheet was upgraded to investment grade while a 20% dividend increase was announced, and 215 exabytes were delivered to customers up 22% year-over-year. The AI-driven data economy fueled structural storage demand, while UltraSMR adoption accelerated across the customer base and HAMR qualification advanced though ramp timing remained uncertain.
Demand | Supply Chain | Product Launch | Innovation & R&D | Pricing | Margin | Capital Allocation | Revenue Growth | |
|---|---|---|---|---|---|---|---|---|
| 2025Q2 | 6 | 8 | 2 | 1 | 2 | 1 | 2 | |
| 2025Q3 | 10 | 6 | 3 | 4 | 4 | 5 | 4 | 3 |
| 2025Q4 | 5 | 2 | 3 | 1 | 4 | 2 | 1 | 4 |
| 2026Q1 | 10 | 4 | 4 | 4 | 2 | 4 | 2 | 2 |
| 2026Q2 | 6 | 2 | 6 | 6 | 3 | 5 | 2 | 1 |
| 2026Q3 | 4 | 2 | 2 | 3 | 1 | 2 | 2 |
| '25Q2 | '25Q3 | '25Q4 | '26Q1 | '26Q2 | '26Q3 | |
|---|---|---|---|---|---|---|
| Demand | 6 | 10 | 5 | 10 | 6 | 4 |
| Supply Chain | 8 | 6 | 2 | 4 | 2 | 2 |
| Product Launch | 2 | 3 | 3 | 4 | 6 | |
| Innovation & R&D | 1 | 4 | 1 | 4 | 6 | 2 |
| Pricing | 2 | 4 | 4 | 2 | 3 | 3 |
| Margin | 1 | 5 | 2 | 4 | 5 | 1 |
| Capital Allocation | 2 | 4 | 1 | 2 | 2 | 2 |
| Revenue Growth | 3 | 4 | 2 | 1 | 2 |
| Quarter | Revenue | Rev YoY | EPS | EPS YoY | Gross margin | Op margin | Net margin | FCF |
|---|---|---|---|---|---|---|---|---|
| FY2025 Q1 | $2.21B | -19.6% | $1.35 | +162.2% | 36.4% | 15.4% | 22.3% | $-62M |
| FY2025 Q2 | $4.29B | +41.3% | $1.63 | +275.3% | 35.4% | 19.9% | 13.9% | $287M |
| FY2025 Q3 | $2.29B | +30.9% | $1.42 | +317.6% | 39.8% | 33.1% | 22.8% | $379M |
| FY2025 Q4 | $2.60B | +30.0% | $0.76 | +772.6% | 41.0% | 26.1% | 9.9% | $675M |
| FY2026 Q1 | $2.82B | +27.4% | $3.07 | +127.4% | 43.5% | 28.1% | 41.9% | $599M |
| FY2026 Q2 | $3.02B | +25.0% | $4.73 | +190.2% | 45.7% | 31.9% | 61.1% | $653M |
| FY2026 Q3 | $3.34B | +45.5% | $8.52 | +500.0% | 50.2% | 35.7% | 96.0% | $978M |
| FY2026 Q4 | $3.75B | +43.8% | $8.50 | +1018.4% | 54.1% | 41.7% | 85.3% | $1.09B |
Management’s own words, often on a non-GAAP, constant-currency, or adjusted basis — so these can differ from the GAAP figures above (e.g. constant-currency revenue growth excludes currency swings).
| Analyst | Firm | Questions (Challenge)Percentage of questions scored as challenging — where the analyst pushed back, pressed for specifics, or questioned management's assumptions. |
|---|---|---|
| Aaron Rakers | Wells Fargo | 13 (0%) |
| CJ Muse | Cantor Fitzgerald | 12 (8%) |
| Karl Ackerman | BNP Paribas |
| Tom O'Malley | Barclays | 11 (0%) |
| Amit Daryanani | Evercore ISI | 10 (0%) |
| Erik Woodring | Morgan Stanley | 10 (0%) |
| Ananda Baruah | Loop Capital | 8 (0%) |
| Wamsi Mohan | Bank of America | 7 (14%) |
| Vijay Rakesh | Mizuho Securities | 6 (0%) |
| Asiya Merchant | Citigroup | 6 (0%) |
| Firm | Analysts | Questions (Challenge)Percentage of questions scored as challenging — where the analyst pushed back, pressed for specifics, or questioned management's assumptions. |
|---|---|---|
| Wells Fargo | 1 | 13 (0%) |
| BNP Paribas | 1 | 12 (0%) |
| Morgan Stanley | 2 | 12 (0%) |
| Cantor Fitzgerald | 1 | 12 (8%) |
| Evercore ISI | 2 | 11 (0%) |
| Barclays | 1 | 11 (0%) |
| Citigroup | 2 | 11 (0%) |
| Bank of America | 3 | 10 (10%) |
What WDC and other companies said about each other on FY2026 Q3 earnings calls — extracted verbatim from public transcripts. Mentions from the newest quarter are a Pro feature.
“Additionally, during the quarter, we received an upgrade from Standard & Poor’s and Fitch to investment-grade level.”
Fitch Ratings upgraded Western Digital to investment grade alongside S&P, marking a broad ratings-agency vote of confidence in WDC's balance sheet.
“Additionally, during the quarter, we received an upgrade from Standard & Poor’s and Fitch to investment-grade level.”
S&P Global Ratings upgraded Western Digital to investment grade, reflecting a rating agency's improved credit assessment of WDC.
“It is our intention to monetize the remaining 1.7 million shares in an equity-for-equity transaction.”
WDC plans to divest its remaining 1.7 million SanDisk shares tax-free before year-end, fully exiting its post-spin SanDisk position.
“During the third fiscal quarter, we significantly strengthened our balance sheet by monetizing 5.8 million shares of SanDisk, which led to a $3.1 billion reduction in our debt.”
Western Digital sold 5.8 million of its SanDisk shares to cut debt, signaling WDC is steadily unwinding its residual stake in the spun-off flash business.
| Company | Score | Trend | Rev YoY |
|---|---|---|---|
WDC Western Digital | 9 | +45.5% | |
| ANET Arista Networks | 9 | +35.1% | |
| DELL Dell Technologies | 10 | +40.2% | |
| HPQ HP Inc. | 5 | +6.9% | |
| IONQ IonQ, Inc. | 9 | +754.7% | |
| NTAP NetApp | 8 | +4.4% | |
| QBTS D-Wave Quantum Inc. | 2 | -81.0% | |
| RGTI Rigetti Computing, Inc. | 8 | +198.9% | |
| SMCI Supermicro | 7 | +122.7% | |
| STX Seagate Technology Holdings | 10 | +44.1% |