Western Digital Corporation's stock traded at $214.00 on January 13th, with trailing and forward P/E ratios of 29.88 and 28.09 respectively, according to Yahoo Finance data.
The company develops, manufactures, and sells data storage devices and solutions based on hard disk drive technology across the United States, Asia, Europe, the Middle East, and Africa. Its product offerings include internal HDDs, data center drives, external drives, portable drives, and NAS for home and office use.
In its first quarter of fiscal year 2026, Western Digital reported revenue of $2.82 billion, representing a 27% increase compared to the same period last year. Non-GAAP earnings per share reached $1.78, with an operating margin of 30.4% and free cash flow of $599 million.
For the second quarter of fiscal year 2026, the company expects sequential revenue growth to approximately $2.9 billion with margins in the mid-40s range. Western Digital increased its dividend by $0.125 and executed $553 million in share buybacks during the quarter.
Following the separation of its Flash business in February 2025, Western Digital now operates exclusively in the HDD segment. The company maintains diversified exposure across Cloud, Client, and Consumer markets, with cloud operations leading both revenue and margin performance.
Management reported accelerated qualifications of ePMR and HAMR technologies, which improve yield and density. Capital expenditure remains disciplined at 4% to 6% of revenue, with no plans for new unit capacity expansion.
The company has secured multi-year orders from hyperscale customers and maintains a robust backlog, providing visibility into revenue and margins through calendar year 2027.
Valuation analyses using discounted cash flow, sum-of-the-parts, and peer multiples indicate fair value in the high-$100s range, with potential upside toward $250 if margin and technology milestones are achieved.
According to database records, 84 hedge fund portfolios held Western Digital at the end of the third quarter, compared to 74 in the previous quarter.