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Western Digital Shares Fall Despite Q4 Earnings Beat and Strong Guidance
Western Digital Corp. (NASDAQ: WDC) reported fiscal fourth-quarter earnings and revenue that exceeded analyst expectations and issued an upbeat forecast for the upcoming quarter, yet its shares fell in after-hours trading.
Beat-and-Raise Quarter
The data storage solutions provider announced strong results for the quarter ending in fiscal 2026, driven by what CEO Irving Tan described as expanding global storage demand and operational discipline.
- Earnings Per Share (EPS): Adjusted EPS came in at $3.56, beating the consensus estimate of $3.29.
- Revenue: The company posted revenue of $3.75 billion, surpassing the analyst forecast of $3.69 billion.
On a year-over-year basis, Western Digital's revenue increased by 44%, while its adjusted earnings per share more than doubled, according to the company's report.
Forward Guidance and Market Reaction
AdFor the first quarter of fiscal 2027, Western Digital provided guidance that was also above market expectations. The company projects revenue between $4.0 billion and $4.2 billion, compared to a consensus of $4.04 billion. It forecasts EPS in a range of $3.85 to $4.15, ahead of the $3.77 consensus.
Despite the positive results and optimistic outlook, shares of Western Digital traded approximately 7.8% lower following the announcement. The market's reaction suggests the strong performance may have been insufficient to meet higher investor expectations.
Annual Performance and Dividend
For the full fiscal year 2026, the company reported revenue of $12.92 billion, a 36% increase from the prior year. Non-GAAP diluted EPS for the year reached $10.22, up significantly from $5.02 in fiscal 2025.
Western Digital's board also declared a quarterly cash dividend of $0.15 per share. The dividend is payable on September 17, 2026, to shareholders of record as of September 8, 2026.
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