Western Digital (NASDAQ:WDC) Updates Q1 2027 Earnings Guidance

Key Points

• Western Digital exceeded quarterly expectations, reporting EPS of $3.56 versus the $3.31 consensus and revenue of $3.75 billion versus $3.70 billion.
• Management issued above-consensus Q1 2027 guidance, forecasting EPS of $3.85–$4.15 and revenue of $4.0–$4.2 billion, supported by strong storage and AI infrastructure demand.
• Despite the strong results and outlook, Western Digital shares fell 5.4% to $519.17, potentially reflecting profit-taking, elevated expectations and a valuation near 31 times earnings.

Western Digital (NASDAQ:WDC - Get Free Report) issued an update on its first quarter 2027 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 3.850-4.150 for the period, compared to the consensus EPS estimate of 3.630. The company issued revenue guidance of $4.0 billion-$4.2 billion, compared to the consensus revenue estimate of $3.9 billion.

Western Digital Stock Down 5.4%

NASDAQ:WDC traded down $29.39 during trading hours on Wednesday, reaching $519.17. 9,391,189 shares of the company's stock were exchanged, compared to its average volume of 8,921,373. Western Digital has a 1-year low of $73.14 and a 1-year high of $799.87. The firm has a market capitalization of $178.95 billion, a price-to-earnings ratio of 31.00 and a beta of 2.14. The company has a 50-day moving average of $569.37 and a 200 day moving average of $413.52.

Western Digital (NASDAQ:WDC - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The data storage provider reported $3.56 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.31 by $0.25. Western Digital had a return on equity of 42.95% and a net margin of 55.29%.The firm had revenue of $3.75 billion for the quarter, compared to analysts' expectations of $3.70 billion. Western Digital has set its Q1 2027 guidance at 3.850-4.150 EPS. Research analysts forecast that Western Digital will post 9.61 EPS for the current fiscal year.

Wall Street Analyst Weigh In

WDC has been the subject of a number of recent analyst reports. Cantor Fitzgerald raised their price objective on shares of Western Digital from $660.00 to $900.00 and gave the company an "overweight" rating in a research report on Monday, June 29th. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $400.00 price objective on shares of Western Digital in a research note on Friday, May 1st. Rosenblatt Securities raised their target price on shares of Western Digital from $340.00 to $500.00 and gave the stock a "buy" rating in a research report on Friday, May 1st. JPMorgan Chase & Co. upped their price objective on shares of Western Digital from $530.00 to $650.00 and gave the company an "overweight" rating in a research note on Friday, June 12th. Finally, Citigroup lifted their target price on Western Digital from $685.00 to $800.00 and gave the company a "buy" rating in a report on Monday, July 13th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $520.32.

Insiders Place Their Bets

In other Western Digital news, insider Cynthia L. Tregillis sold 808 shares of Western Digital stock in a transaction that occurred on Tuesday, July 21st. The stock was sold at an average price of $529.63, for a total value of $427,941.04. Following the completion of the transaction, the insider directly owned 114,539 shares in the company, valued at $60,663,290.57. The trade was a 0.70% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bruce E. Kiddoo sold 750 shares of Western Digital stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $528.52, for a total value of $396,390.00. Following the sale, the director directly owned 3,903 shares in the company, valued at approximately $2,062,813.56. This trade represents a 16.12% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 5,093 shares of company stock valued at $2,751,337 over the last quarter. Insiders own 0.18% of the company's stock.

More Western Digital News

Here are the key news stories impacting Western Digital this week:

• Positive Sentiment: Western Digital reported fiscal fourth-quarter EPS of $3.56, exceeding the analyst consensus of $3.31, while revenue of $3.75 billion topped the $3.70 billion estimate. Profit increased more than elevenfold year over year, supported by continued demand for memory and data-storage technology. Western Digital Profit Surges as Revenue Grows
• Positive Sentiment: Management issued first-quarter fiscal 2027 EPS guidance of $3.85–$4.15, above the $3.63 consensus estimate, and revenue guidance of $4.0–$4.2 billion, ahead of the $3.9 billion forecast. The outlook signals continued strength in storage demand and the AI infrastructure buildout.
• Positive Sentiment: The quarter’s 55.29% net margin and 42.95% return on equity reinforce the company’s improved profitability and operating momentum.
• Neutral Sentiment: Analysts had already expected a strong quarter, with forecasts reflecting higher EPS and revenue than the prior year. As a result, the earnings beat and above-consensus guidance may have been insufficient to exceed elevated investor expectations. Western Digital Earnings Are Imminent
• Negative Sentiment: The stock fell after the report, suggesting investors were selling the news or wanted an even stronger outlook. Western Digital had reportedly gained more than 222% year to date, leaving the shares vulnerable to profit-taking and a high valuation near a 31 price-to-earnings ratio. WDC Earnings: Western Digital Stock Falls Despite Strong Financial Results

Institutional Investors Weigh In On Western Digital

Institutional investors have recently added to or reduced their stakes in the company. Rakuten Securities Inc. boosted its holdings in Western Digital by 4,070.0% during the second quarter. Rakuten Securities Inc. now owns 417 shares of the data storage provider's stock valued at $27,000 after purchasing an additional 407 shares in the last quarter. Swiss RE Ltd. bought a new stake in Western Digital during the 4th quarter worth about $32,000. JPL Wealth Management LLC acquired a new stake in Western Digital in the 3rd quarter valued at about $33,000. BOKF NA increased its position in Western Digital by 6,700.0% in the 3rd quarter. BOKF NA now owns 272 shares of the data storage provider's stock valued at $33,000 after acquiring an additional 268 shares in the last quarter. Finally, Transamerica Financial Advisors LLC raised its stake in shares of Western Digital by 77.0% in the fourth quarter. Transamerica Financial Advisors LLC now owns 308 shares of the data storage provider's stock worth $53,000 after acquiring an additional 134 shares during the last quarter. 92.51% of the stock is owned by institutional investors and hedge funds.

Western Digital Company Profile

Western Digital Corporation is a global data storage company that designs, manufactures and sells a broad range of storage devices and systems for personal, enterprise and cloud applications. Headquartered in San Jose, California, the company develops hard disk drives (HDDs), solid-state drives (SSDs), NAND flash components and finished storage products used in PCs, external storage, servers, network-attached storage (NAS) and embedded systems.

Its product portfolio spans consumer and commercial markets, including internal and external HDDs and SSDs, removable flash memory products and storage platforms for data center and enterprise environments.

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