Key Highlights
- Bank of America increased its WDC price forecast to $495 from $415, maintaining a Buy recommendation
- Wedbush elevated its target to $530 from $320, holding its Buy stance
- Cantor Fitzgerald boosted its forecast to $500 from $420, retaining an Overweight position
- Analysts emphasize constrained HDD supply, increasing average selling prices, and robust AI-fueled nearline storage demand
- The company announces fiscal Q3 2026 results on April 30; analysts project EPS of $2.40 and revenue reaching $3.25 billion
Western Digital (WDC) approaches its fiscal third-quarter earnings announcement scheduled for April 30 with renewed analyst confidence. This week brought price target increases from three prominent financial institutions: Bank of America, Wedbush, and Cantor Fitzgerald. The common thread connecting these upgrades centers on constrained hard disk drive availability and accelerating demand driven by artificial intelligence applications.
Western Digital Corporation, WDC
Shares of WDC have surged approximately 900% during the past twelve months, currently trading around $404 — approaching its 52-week peak of $416.
Analyst consensus anticipates the company will deliver EPS of $2.40 for Q3 FY26, representing a 76.5% year-over-year increase. Revenue forecasts point to $3.25 billion, marking roughly a 42% climb.
Wedbush analyst Matt Bryson delivered the most substantial revision, lifting his price target to $530 from $320. Maintaining his Buy recommendation, Bryson highlighted how the HDD market began 2026 facing a pronounced supply-demand imbalance that continues expanding.
Bryson emphasized escalating AI infrastructure investments and expanding data requirements for AI inference and training workloads as primary catalysts. He anticipates manufacturing capacity limitations will maintain supply constraints while demand trajectories remain upward.
For the upcoming third quarter, Bryson forecasts WDC’s nearline unit shipments reaching 7.6 million units, HDD average selling prices gaining 6%, and gross margin expanding 140 basis points to 47.5%.
He acknowledged certain near-term considerations, mentioning that production constraints, extended supply contracts, and memory segment pressures might moderate immediate upside potential.
Additional Analyst Support from BofA and Cantor
BofA analyst Wamsi Mohan elevated his price target to $495 from $415, preserving his Buy rating. He reinforced the supply constraint narrative, characterizing it as a fundamental market transformation rather than a temporary phenomenon. Mohan anticipates demand will persistently exceed supply, creating opportunities for additional price appreciation.
Mohan’s optimistic scenario presents a compelling vision: he identifies a pathway to 2028 EPS of $33, with dollar-per-terabyte pricing reaching $20 at a 3-year CAGR of 12% and operating margin expanding to 55%.
Cantor Fitzgerald similarly raised its target to $500 from $420 while maintaining an Overweight designation. The firm anticipates gross margins could achieve 50% or above beginning in the September quarter, potentially climbing to 60% by late 2028.
Cantor revised its 2026 revenue projection to $14.7 billion and EPS forecast to $12.55, both exceeding Wall Street consensus figures. Looking to 2027, the firm envisions revenue of $18.2 billion and EPS of $18.50.
Financial Position Shows Considerable Strength
Analysts consistently reference Western Digital’s financial position as a significant advantage. Following complete monetization of its Sandisk stake, the company currently maintains a debt-free balance sheet. Cantor estimates this financial flexibility could enable WDC to execute share repurchases exceeding $9 billion through 2028, contingent on dividend allocation choices.
S&P Global Ratings recently elevated Western Digital’s credit rating to BBB-, acknowledging the company’s debt reduction achievements.
While analyst sentiment appears overwhelmingly positive, the average Wall Street price target among all 18 covering analysts stands at $375.56 — approximately 7.5% beneath the current trading price, illustrating how dramatically WDC shares have already appreciated.
The company releases fiscal Q3 2026 earnings on April 30.
