Key Highlights
- Fiscal Q3 2026 earnings per share reached $2.72, surpassing the consensus forecast of $2.39, while revenue hit $3.34B — a 45% increase from the prior year
- Analysts across Wall Street elevated their price targets, with Cantor Fitzgerald establishing the highest mark at $660
- Shares have surged more than 160% since the start of the year, currently trading near $432
- Consensus analyst target of $488.24 suggests approximately 12% potential appreciation; 14 out of 17 analysts maintain Buy recommendations
- Fourth quarter fiscal 2026 outlook projects earnings per share between $3.10 and $3.40
Western Digital (WDC) posted robust fiscal third-quarter results that captured Wall Street’s attention. Trading around $432 per share, the stock has climbed more than 160% year-to-date, approaching its 52-week peak of $446.62.
Western Digital Corporation, WDC
The data storage leader posted adjusted earnings of $2.72 per share, exceeding analyst expectations of $2.39 by $0.33. Quarterly revenue reached $3.34 billion, marking a 45.5% year-over-year increase and beating the $3.25 billion Street forecast.
Growth acceleration came primarily from expanding AI-related data center infrastructure requirements, with hard disk drive prices showing strength both sequentially and compared to the previous year.
Following a temporary pullback after the April 30 earnings announcement, WDC rebounded approximately 2% during early Monday trading sessions as Wall Street firms revised their forecasts upward.
Gross profit margins reached 51.5%, exceeding the 48.6% consensus figure reported by Mizuho. BofA Securities observed margin expansion of 436 basis points from the previous quarter.
Wall Street Revises Price Targets Higher
C.J. Muse at Cantor Fitzgerald established the most bullish Street target at $660, elevated from $500, emphasizing robust pricing dynamics, healthy data center appetite, expanding margins, and advancement in HAMR (heat-assisted magnetic recording) capabilities.
Mark Newman from Bernstein increased his forecast from $340 to $590, referencing the impressive Q3 performance powered by HDD demand momentum and pricing strength.
Citigroup elevated its projection to $500 from $405, keeping its Buy stance while emphasizing sustained AI-fueled demand patterns and enhanced pricing clarity.
Robert W. Baird raised its forecast to $450 from $310 alongside an outperform designation. Barclays adjusted upward to $450 from $405. Mizuho established a $470 objective. UBS increased its neutral-rated target to $375 from $350.
Argus maintained its Buy recommendation with a $500 price objective, observing the stock has generated an 870% return over the trailing twelve months.
Across 19 analysts maintaining Buy ratings and four holding neutral positions, the average price target stands at $488.24 — suggesting roughly 12% upward potential from present levels.
Advanced Technology and Product Pipeline
Vijay Rakesh from Mizuho, who ranks #4 among more than 12,000 analysts on TipRanks with a 74% accuracy record, lifted his target from $400 to $470.
Rakesh emphasized that WDC’s high-bandwidth HDD solutions — delivering 2–4x the performance of conventional drives — are currently undergoing evaluation with two customers.
He further observed that next-generation HAMR technology rollout is now anticipated during the first half of 2027, somewhat earlier than previous projections.
Looking toward Q4 2026, Western Digital provided guidance calling for earnings per share between $3.10 and $3.40 alongside revenue of $3.65 billion for the June quarter.
Institutional investors control 92.51% of outstanding shares, with substantial new stakes from WCM Investment Management and Norges Bank initiated during recent periods.
Company insiders divested approximately 72,711 shares worth roughly $19.2 million during the past 90 days, although insider ownership represents only 0.18% of total equity.
The corporation maintains a market capitalization of $146.5 billion, trades at a P/E ratio of 25.79, and carries a debt-to-equity ratio of 0.34.
