olivLaw · US equity research
Western Digital Corporation WDC
Computer Storage Devices · SIC 3572 · Vertical: Computer Storage Devices (SIC 3572)
Western Digital (WDC) develops and makes hard disk drive storage devices, with a focus on cloud and AI customers. Its latest results show accelerated revenue growth, with the Cloud segment making up 89% of revenue.
At the close of 04 Nov 2026, Western Digital Corporation (WDC) stock was 323.83 USD (−6.77% on the day), with market capitalisation 121.2 bn USD, P/E 12.6 on diluted EPS of 25.77 USD over the last 12 months, dividend yield 0.17%, beta 2.10, 52-week range 139.19–746.23 USD. Latest reported quarter (Q1 2027): revenue of 4.4 bn USD (+55.5% YoY), net income of 1.8 bn USD (+50.5% YoY), diluted EPS 4.63 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 36.4
- weak (30–45)
- Bollinger (20, 2)
- 321.61 – 409.23
- in the lower half of the band · %B 0.03 · band width 24.0%
- SMA 50 / 200
- 414.74 / 420.70
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -19.80 / -19.25
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −26.7% | −1.1% | −25.6 pp | — |
| 3 months | −37.6% | −0.5% | −37.2 pp | — |
| 6 months | −33.0% | +4.4% | −37.4 pp | — |
| Year to date | +88.0% | +12.3% | +75.7 pp | — |
| 1 year | +112.8% | +13.5% | +99.3 pp | +74.4% |
| 3 years | +896.1% | +76.4% | +819.7 pp | +181.9% |
| 5 years | +662.6% | +63.7% | +598.9 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q1 2027 · 02 Oct 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2.4 bn | 2.3 bn | 2.6 bn | 2.8 bn | 3.0 bn | 3.3 bn | 3.7 bn | 4.4 bn |
| Cost of revenue | 1.5 bn | 1.4 bn | 1.5 bn | 1.6 bn | 1.6 bn | 1.7 bn | 1.7 bn | 1.8 bn |
| Gross profit | 907.0 m | 912.0 m | 1.1 bn | 1.2 bn | 1.4 bn | 1.7 bn | 2.0 bn | 2.5 bn |
| SG&A | 132.0 m | 108.0 m | 124.0 m | 138.0 m | 128.0 m | 147.0 m | 138.0 m | 162.0 m |
| Operating income | 560.0 m | 760.0 m | 680.0 m | 792.0 m | 908.0 m | 1.2 bn | 1.6 bn | 2.0 bn |
| Depreciation & amortisation | 120.0 m ≈ | 110.0 m ≈ | 86.0 m | 88.0 m | 92.0 m ≈ | 96.0 m ≈ | 99.0 m | 104.0 m |
| Interest expense | 93.0 m | 91.0 m | 74.0 m | 59.0 m | 54.0 m | 38.0 m | 14.0 m | 11.0 m |
| Pre-tax income | 466.0 m | 74.0 m | 347.0 m | 1.3 bn | 2.0 bn | 3.4 bn | 3.2 bn | 2.0 bn |
| Income tax | 0 | -698.0 m | 95.0 m | 155.0 m | 120.0 m | 154.0 m | 52.0 m | 259.0 m |
| Net income | 594.0 m | 520.0 m | 282.0 m | 1.2 bn | 1.8 bn | 3.2 bn | 3.2 bn | 1.8 bn |
| Diluted EPS | 1.63 | 1.42 | 0.75 | 3.07 | 4.73 | 8.20 | 8.21 ≈ | 4.63 |
| Operating cash flow | 403.0 m ≈ | 508.0 m ≈ | 746.0 m | 672.0 m | 745.0 m ≈ | 1.1 bn ≈ | 1.4 bn | 1.6 bn |
| Capex | 116.0 m ≈ | 129.0 m ≈ | 71.0 m | 73.0 m | 92.0 m ≈ | 145.0 m ≈ | 108.0 m | 227.0 m |
| Dividends paid | 0 ≈ | 0 ≈ | 44.0 m | 34.0 m | 43.0 m | 43.0 m | 54.0 m | 56.0 m |
| Share repurchases | 0 ≈ | 0 ≈ | 149.0 m | 553.0 m | 615.0 m ≈ | 752.0 m ≈ | 672.0 m | 1.0 bn |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 36 percentile of its own 28-quarter history (min 6.3, median 18.2, max 120.2; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | ⚠ 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 16.6 bn | 16.7 bn | 16.9 bn | 18.8 bn | 6.3 bn | 6.3 bn | 9.5 bn | 12.9 bn |
| Revenue YoY | −19.8% | +1.0% | +1.1% | +11.1% | — | +1.0% | +50.7% | +35.7% |
| Net income | -754.0 m | -250.0 m | 821.0 m | 1.5 bn | -1.7 bn | -798.0 m | 1.9 bn | 9.4 bn |
| Net income YoY | −211.7% | unavailable | unavailable | +88.3% | — | unavailable | unavailable | +398.9% |
| Diluted EPS | -2.58 | -0.84 | 2.66 | 4.89 | -5.37 | -2.61 | 5.12 | 24.28 |
| Diluted EPS YoY | −217.3% | unavailable | unavailable | +83.8% | — | unavailable | unavailable | +374.2% |
| net % | -4.6% | -1.5% | 4.9% | 8.2% | -26.9% | -12.6% | 19.8% | 72.9% |
| Free cash flow | 671.0 m | 177.0 m | 752.0 m | 758.0 m | -1.2 bn | -781.0 m | 1.3 bn | 3.5 bn |
The series breaks before 2023: earlier years come from the original reports of the issuer of that time, later years from a subsequent filing that restated the perimeter (a separation, discontinued operations). The year-on-year change across the break is not shown.
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 03 Jul 2026
- Cash
- 1.6 bn USD
- Financial debt
- 1.1 bn USD
- Net debt
- -527.0 m USD
- Equity
- 8.9 bn USD
- Total assets
- 13.9 bn USD
- Debt / equity
- 0.12x
- Current ratio
- 1.33x
- ROE
- 133.0%
- ROA
- 67.6%
- FCF margin
- 27.2%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 16.9 bn | 18.8 bn | 6.3 bn | 6.3 bn | 9.5 bn | 12.9 bn | SEC (XBRL)· 14 Aug 2026verified |
| Cost of revenue | 12.4 bn | 12.9 bn | 4.9 bn | 4.5 bn | 5.8 bn | 6.6 bn | SEC (XBRL)· 14 Aug 2026verified |
| Gross profit | 4.5 bn | 5.9 bn | 1.4 bn | 1.8 bn | 3.7 bn | 6.3 bn | SEC (XBRL)· 14 Aug 2026verified |
| SG&A | 1.1 bn | 1.1 bn | 807.0 m | 726.0 m | 568.0 m | 551.0 m | SEC (XBRL)· 14 Aug 2026verified |
| Operating income | 1.2 bn | 2.4 bn | -548.0 m | -403.0 m | 2.3 bn | 4.5 bn | SEC (XBRL)· 14 Aug 2026verified |
| Depreciation & amortisation | 1.2 bn | 929.0 m | 828.0 m | 568.0 m | 451.0 m | 375.0 m | SEC (XBRL)· 14 Aug 2026verified |
| EBITDA | 2.4 bn ≈ | 3.3 bn ≈ | 280.0 m ≈ | 165.0 m ≈ | 2.8 bn ≈ | 4.8 bn ≈ | SEC (XBRL)· 14 Aug 2026derived |
| Interest expense | 326.0 m | 304.0 m | 312.0 m | 414.0 m | 357.0 m | 165.0 m | SEC (XBRL)· 14 Aug 2026verified |
| Pre-tax income | 927.0 m | 2.2 bn | -849.0 m | -739.0 m | 1.1 bn | 9.9 bn | SEC (XBRL)· 14 Aug 2026verified |
| Income tax | 106.0 m | 625.0 m | 53.0 m | 26.0 m | -513.0 m | 481.0 m | SEC (XBRL)· 14 Aug 2026verified |
| Net income | 821.0 m | 1.5 bn | -1.7 bn | -798.0 m | 1.9 bn | 9.4 bn | SEC (XBRL)· 14 Aug 2026verified |
| Diluted EPS | 2.66 | 4.89 | -5.37 | -2.61 | 5.12 | 24.28 | SEC (XBRL)· 14 Aug 2026verified |
| Weighted average diluted shares | 309.0 m | 316.0 m | 318.0 m | 326.0 m | 359.0 m | 383.0 m | SEC (XBRL)· 14 Aug 2026verified |
| Dividend per share | 0.00 | 0.00 | — | — | 0.10 | 0.50 | SEC (XBRL)· 14 Aug 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 3.4 bn | 2.3 bn | 2.0 bn | 1.6 bn | 2.1 bn | 1.6 bn | SEC (XBRL)· 14 Aug 2026verified |
| Receivables | 2.3 bn | 2.8 bn | 1.6 bn | 1.2 bn | 1.5 bn | 2.0 bn | SEC (XBRL)· 14 Aug 2026verified |
| Inventories | 3.6 bn | 3.6 bn | 3.7 bn | 1.4 bn | 1.3 bn | 1.5 bn | SEC (XBRL)· 14 Aug 2026verified |
| Current assets | 9.8 bn | 9.5 bn | 7.9 bn | 8.1 bn | 5.9 bn | 5.6 bn | SEC (XBRL)· 14 Aug 2026verified |
| Property, plant & equipment, net | 3.2 bn | 3.7 bn | 3.6 bn | 2.4 bn | 2.3 bn | 2.5 bn | SEC (XBRL)· 14 Aug 2026verified |
| Goodwill | 10.1 bn | 10.0 bn | 10.0 bn | 4.3 bn | 4.3 bn | 4.3 bn | SEC (XBRL)· 14 Aug 2026verified |
| Intangibles (excl. goodwill) | 442.0 m | 213.0 m | 80.0 m | 78.0 m | — | — | SEC (XBRL)· 20 Aug 2024verified |
| Total assets | 26.1 bn | 26.3 bn | 24.5 bn | 24.2 bn | 14.0 bn | 13.9 bn | SEC (XBRL)· 14 Aug 2026verified |
| Accounts payable | 1.9 bn | 1.9 bn | — | 1.1 bn | 1.3 bn | 1.8 bn | SEC (XBRL)· 14 Aug 2026verified |
| Short-term debt | 251.0 m | 0 | 1.2 bn | 1.8 bn | 2.2 bn | 1.1 bn | SEC (XBRL)· 14 Aug 2026verified |
| Long-term debt | 8.5 bn | 7.0 bn | 5.9 bn | 5.7 bn | 2.5 bn | 0 | SEC (XBRL)· 14 Aug 2026verified |
| Current liabilities | 4.9 bn | 5.2 bn | 5.4 bn | 6.1 bn | 5.4 bn | 4.2 bn | SEC (XBRL)· 14 Aug 2026verified |
| Total liabilities | 15.4 bn | 14.0 bn | 12.7 bn | 13.1 bn | 8.5 bn | 5.0 bn | SEC (XBRL)· 14 Aug 2026verified |
| Equity | 10.8 bn † | 12.3 bn † | 11.0 bn † | 10.8 bn † | 5.3 bn † | 8.9 bn † | SEC (XBRL)· 14 Aug 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 1.9 bn | 1.9 bn | -408.0 m | -294.0 m | 1.7 bn | 3.9 bn | SEC (XBRL)· 14 Aug 2026verified |
| Capex | 1.1 bn | 1.1 bn | 821.0 m | 487.0 m | 412.0 m | 418.0 m | SEC (XBRL)· 14 Aug 2026verified |
| Free cash flow | 752.0 m ≈ | 758.0 m ≈ | -1.2 bn ≈ | -781.0 m ≈ | 1.3 bn ≈ | 3.5 bn ≈ | SEC (XBRL)· 14 Aug 2026derived |
| Investing cash flow | -765.0 m | -1.2 bn | -762.0 m | -27.0 m | 150.0 m | -429.0 m | SEC (XBRL)· 14 Aug 2026verified |
| Financing cash flow | -817.0 m | -1.7 bn | 875.0 m | 187.0 m | -1.6 bn | -4.0 bn | SEC (XBRL)· 14 Aug 2026verified |
| Dividends paid | 0 | 0 | 0 | 0 | 44.0 m | 174.0 m | SEC (XBRL)· 14 Aug 2026verified |
| Share repurchases | 0 | — | 0 | 0 | 149.0 m | 2.6 bn | SEC (XBRL)· 14 Aug 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 68 / 100
A scoring methodology on indicators and valuation, not investment advice.
(margin_of_safety <= -0.25 & agreement in ['high', 'medium'])
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 121.2 bn USD
Key indicators
Coverage and freshness
Score by group
- Returns78
- Growth93
- Balance sheet69
- Valuation51
- Quality61
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 145.57 – 297.86 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)195.56 – 297.86 (Mid 235.46)WACC 9.3% · starting FCFF 4.4 bn USD · terminal value share of EV 74%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 30.9%
- Peers: EV/Sales145.57 – 294.68 (Mid 226.36)3 companies used · median multiple 5.8x · quartiles 3.7x – 7.6xNTAP, QMCO, STX
- Peers: EV/EBITDAunavailable · not enough peers
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 68/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 52.6% | 32 (on a fixed band) | 11% |
| EBIT margin · Quality | 39.4% | 60 (vs peers) | 9% |
| FCF margin · Quality | 29.6% | 100 (on a fixed band) | 9% |
| Revenue CAGR 3Y · Growth | 27.4% | 100 (on a fixed band) | 17% |
| Revenue growth (YoY) · Growth | 35.7% | 80 (vs peers) | 9% |
| Net debt / EBITDA · Balance sheet | -0.1x | 100 (on a fixed band) | 6% |
| Current ratio · Balance sheet | 1.4x | 37 (on a fixed band) | 6% |
| EV/Sales · Valuation | 8.3x | 37 (on a fixed band) | 17% |
| FCF yield · Valuation | 3.5% | 71 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 2.7% | 78 (on a fixed band) | 4% |
Score groups
- Balance sheet69/100 · 2/2 factors with a value
- Growth93/100 · 2/2 factors with a value
- Quality61/100 · 3/3 factors with a value
- Returns78/100 · 1/1 factors with a value
- Valuation51/100 · 2/2 factors with a value
Memo
WESTERN DIGITAL CORPORATION (WDC). Latest full fiscal year: 2026; data up to 2026-10-02.
Figures computed from the financial statements: revenue 12.9 bn USD in 2026; YoY growth 35.7%; net margin 69.2%; ROE 131.5%; net debt/EBITDA -0.1x.
The estimated value range is 170.56–296.27 USD per share (median of 2 methods, agreement: high); assumptions are illustrative. Against the central value of 230.91 USD, the price of 323.83 USD leaves a potential of -28.7% (value / price − 1) and a margin of safety of -40.2% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 68/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF margin: 29.6%
- Revenue CAGR 3Y: 27.4%
- Revenue growth (YoY): 35.7%
- Net debt / EBITDA: -0.1x
- FCF yield: 3.5%
- Shareholder yield (distributions): 2.7%
What contradicts it
- The price is above the estimated value range
Versus the vertical median
Computer Storage Devices (SIC 3572) · same industry (4-digit SIC) · compared with 5 companies
The size band was not applied: too few companies would have remained; the vertical includes much smaller or larger companies.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| SNDKSandisk Corporation | 147.6 bn | 8.3 | 141.2% | 67.0% | +175.3% | +365% / unavailable |
| STXSeagate Technology Holdings plc | 127.9 bn | 29.3 | 259.4% | 31.9% | +34.1% | +101% / +604% |
| WDCWestern Digital Corporation | 121.2 bn | 12.6 | 131.5% | 69.2% | +35.7% | +113% / +896% |
| PEverpure, Inc. | 37.2 bn | 153.7 | 17.7% | 5.9% | +15.6% | +26% / +236% |
| NTAPNetApp, Inc. | 36.9 bn | 26.4 | 114.8% | 21.8% | +5.6% | +68% / +105% |
| QMCOQuantum Corp | 539.5 m | — | — | -80.8% | +2.0% | +74% / +128% |
1- and 3-year price returns: for WDC from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 219.83 Total return -32% · Per year -32% | 386.87 Total return 20% · Per year 20% | 580.30 Total return 79% · Per year 79% |
| 3 years | 260.75 Total return -19% · Per year -7% | 511.63 Total return 59% · Per year 17% | 835.63 Total return 159% · Per year 37% |
| 5 years | 309.29 Total return -4% · Per year -1% | 676.63 Total return 110% · Per year 16% | 1,203.31 Total return 273% · Per year 30% |
- Exit P/E± 127.91
- Net margin± 89.54
- Annual revenue growth± 66.78
- Annual dilution± 7.52
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Western Digital (WDC) develops and makes hard disk drive storage devices, with a focus on cloud and AI customers. Its latest results show accelerated revenue growth, with the Cloud segment making up 89% of revenue 13.
SWOT
Strengths
- Leading position in HDD technology, with a large portfolio of active patents and vertically integrated manufacturing capacity.
- Strong revenue and margin growth in recent quarters, supported by better pricing and a mix shift to higher-capacity drives.
- Long-term commitments with cloud customers improve visibility of future demand and revenue.
Weaknesses
- Heavy reliance on a small number of cloud customers that account for most of the revenue.
- Long-term supply agreements at fixed or formula prices can limit the benefit from rising market prices.
Opportunities
- Demand for AI and cloud-related storage could continue to grow if data centre infrastructure investment is maintained.
- Expansion into new customer groups, such as neocloud providers, could diversify the revenue base.
- Continued share repurchases and dividends could support investor confidence if cash flow stays strong.
Threats
- A cut in AI infrastructure spending by hyperscale customers could quickly reduce demand.
- Alternative storage technologies or data-storage optimisation could reduce demand for HDDs.
- Tariffs and trade restrictions could raise costs or complicate the supply chain.
Risks
- Customer concentrationhigh
A large share of revenue comes from cloud customers and a few major accounts, so losing one could seriously affect results.
- Technology transitionshigh
Failure to implement new technologies such as HAMR could lead to higher costs and loss of market share.
- Long-term agreementsmedium
Fixed-price commitments can prevent the company from benefiting from favourable market conditions, and failure to meet them could bring penalties.
- Supply chainmedium
Dependence on sole or limited suppliers and geopolitical disruptions could delay production.
- Trade policylow
Tariffs and trade measures could change costs and market access, although the current impact is described as not material.
Investment thesis
What would need to be true (bull case)
- If demand for AI and cloud storage stays strong, rising prices and volumes could keep supporting revenue and margins.
- Debt reduction and the repurchase and dividend programmes could increase the value returned to shareholders in the coming years.
- Technology leadership and long-term customer commitments could give better visibility into future revenue.
What would break the thesis
- High customer concentration makes the company vulnerable if hyperscale AI investment slows.
- The recent price increase could prove temporary, and a weaker pricing environment could quickly compress margins.
- Technology and manufacturing risks linked to newer HDD generations could weigh on yields and costs.
What to watch
- Revenue and margin guidance for the second quarterQ2 2027
- Changes in customer concentration and long-term commitmentsnext 10-K
- Pace of share repurchases and dividend payments2027
- Impact of trade policy and tariffs on the supply chainQ2 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Manufacturing is vertically integrated, with assembly and test operations in Thailand, Malaysia, the Philippines, China and California 1. The company designs and manufactures substantially all of the recording heads and magnetic media in its products, which gives it a technology edge in areal density 1. At the end of 2026 the company employed approximately 40,000 people, mostly in Asia Pacific 1.
Strategy aims to lead the data storage market through HDD innovation, financial discipline and debt reduction, alongside returning capital to shareholders through dividends and share repurchases 12. The company reported revenue of 4.381 billion USD in the first quarter of fiscal 2027, up 55% from the prior year 3.
Segments
Market context
Demand for data storage is fuelled by growing volumes of digital content generated by artificial intelligence and cloud applications 1. Demand for high-capacity drives at a low total cost of ownership favours HDDs over other technologies, according to the company 1. Hyperscale customers account for much of the demand, and long-term commitments increase revenue visibility 12.
Customer concentration is high: the top ten customers represented 73% of revenue in fiscal 2026 and 64% in the first quarter of fiscal 2027 12. If demand from hyperscale customers falls, results could be affected significantly 1.
Trends
- Rising demand for cloud and AI storagetailwind
The growth of AI and cloud workloads increases the volume of data that must be stored, supporting demand for high-capacity HDDs 12.
- Higher average selling pricestailwind
A more favourable pricing environment and a mix shift to higher-capacity drives have raised average selling price per exabyte, supporting margins 12.
- Technology transitionsmixed
Moving to new technologies such as HAMR requires large investment and carries yield risks that could weigh on margins if not managed well 1.
- Trade policy and tariffsheadwind
Changes in U.S. trade policy and retaliatory measures by trading partners could affect the supply chain, although the impact has not been material to date 2.
Competitive position
The company operates in a competitive industry where direct rivals include HDD makers such as Seagate Technology Holdings plc and Toshiba Electronic Devices & Storage Corporation 1. NAND flash suppliers offer alternative storage technologies that can compete for the same applications 1.
Western Digital says it keeps its edge through its product portfolio, innovation in areal density and cost-efficient manufacturing 1. However, if competitors gain a product or cost advantage, the company's position could be affected 1.
- Seagate TechnologySTX
Main HDD competitor, cited in the Form 10-K as a direct rival in cloud and enterprise markets.
- Toshiba Electronic Devices & Storage Corporation
HDD maker cited as a competitor in the company's annual report.
- NAND flash suppliers
Companies offering flash storage technologies that can compete with HDDs in certain applications.
- Storage systems and solutions providers
Companies offering complete storage systems that can replace individual HDDs in customer projects.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
- Stocks making the biggest moves in after hours: Western Digital, Bloom Energy, Deckers Outdoor & moreCNBC — Top News · 22 Oct 2026 · EN
- Western Digital ( NASDAQ : WDC ) Stock Gets Price Target Boost from Bank of AmericaSurge — GDELT DOC · 21 Oct 2026 · RO
- Acțiunile Seagate și Western Digital urcă după ce un analist vede un avans de 80% - InvezzSurge — Google News · 20 Oct 2026 · RO
- Why Western Digital and Seagate are seeing big stock drops todayMarketWatch — Top Stories · 02 Oct 2026 · EN
- SanDisk Falls 2% Despite Memory Rally; Micron Advances 3%, Western Digital Nudges HigherYahoo Finance — News · 21 Sept 2026 · EN
- Why Now Could Be the Time to Buy Western Digital StockYahoo Finance — News · 17 Sept 2026 · EN
- Is Western Digital Stock Underperforming the Nasdaq?Yahoo Finance — News · 16 Sept 2026 · EN
- Western Digital Falls 4% Despite Its AI Storage Pitch; Seagate Drops 5%, Micron Holds SteadyYahoo Finance — News · 15 Sept 2026 · EN
- Western Digital (WDC): The Fund’s Top Relative ContributorYahoo Finance — News · 15 Sept 2026 · EN
- Seagate Vs. Western Digital: One Moved First on AI Storage Demand. The Other Is Playing It Safe.Yahoo Finance — News · 14 Sept 2026 · EN
- Western Digital Sees AI-Driven HDD Demand Outpacing Supply Through 2027Yahoo Finance — News · 12 Sept 2026 · EN
- Is Western Digital (WDC) Priced Too High?Yahoo Finance — News · 09 Sept 2026 · EN
- Western Digital Director Sold $2.5 Million After a Fourfold-Plus Run. Is AI Storage Momentum Peaking?Yahoo Finance — News · 05 Sept 2026 · EN
- Western Digital Just Dropped 13% in a Month. Is It Time to Sell?Yahoo Finance — News · 28 Aug 2026 · EN
- Seagate vs. Western Digital: Which One is The Best AI Storage Play for Dividend Investors?Yahoo Finance — News · 27 Aug 2026 · EN
- Western Digital Stock Is Down Sharply: Why the Bull Case Still Looks StrongYahoo Finance — News · 26 Aug 2026 · EN
- Memory Stocks Slide on Report Apple May Source Chinese Chips: SanDisk Down 9%, Micron and Western Digital Down 7%Yahoo Finance — News · 24 Aug 2026 · EN
- Expedia, Block, Western Digital, & Sandisk All Report Results | Closing BellBloomberg Markets · 05 Aug 2026 · EN
The latest news item in our archive is from 22 Oct 2026; the newest SEC filing is from 23 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report23 Oct 2026
- Current report22 Oct 2026Results of operations · Financial statements and exhibits
- Proxy statement05 Oct 2026
- Current report14 Sept 2026Regulation FD disclosure · Other events · Financial statements and exhibits
- Current report (amendment)27 Aug 2026Item 3.02
- Current report26 Aug 2026Item 3.02 · Other events
- Annual report14 Aug 2026
- Current report05 Aug 2026Results of operations · Financial statements and exhibits
- Current report11 Jun 2026Other events
- Current report (amendment)08 Jun 2026Item 3.02
Sources
- [1] Form 10-K, fiscal year ended 2026-07-03 · SEC / Western Digital Corporation · 14 Aug 2026
- [2] Form 10-Q, quarter ended 2026-10-02 · SEC / Western Digital Corporation · 23 Oct 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Western Digital Corporation · 22 Oct 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.