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

Western Digital (NASDAQ:WDC) issued an update on its first quarter 2027 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) 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 Trading Down 5.4%

Western Digital stock traded down $29.39 during mid-day trading on Wednesday, hitting $519.17. The stock had a trading volume of 9,391,189 shares, compared to its average volume of 8,921,373. Western Digital has a one year low of $73.14 and a one year high of $799.87. The firm has a market capitalization of $178.95 billion, a P/E ratio of 31.00 and a beta of 2.14. The firm’s 50 day moving average is $569.37 and its 200 day moving average is $413.52.

Western Digital (NASDAQ:WDC) last announced its quarterly earnings data on Wednesday, August 5th. The data storage provider reported $3.56 EPS for the quarter, beating the consensus estimate of $3.31 by $0.25. The business had revenue of $3.75 billion for the quarter, compared to the consensus estimate of $3.70 billion. Western Digital had a return on equity of 42.95% and a net margin of 55.29%.The business’s revenue was up 43.8% on a year-over-year basis. During the same period in the previous year, the business earned $1.66 earnings per share. Western Digital has set its Q1 2027 guidance at 3.850-4.150 EPS. As a group, equities research analysts forecast that Western Digital will post 9.61 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of research analysts recently commented on the company. Robert W. Baird boosted their price target on Western Digital from $310.00 to $450.00 and gave the stock an “outperform” rating in a report on Monday, May 4th. Jefferies Financial Group set a $575.00 price objective on shares of Western Digital in a research report on Tuesday, May 26th. Weiss Ratings upgraded shares of Western Digital from a “buy (b-)” rating to a “buy (b)” rating in a research report on Monday, July 13th. Morgan Stanley raised their target price on shares of Western Digital from $488.00 to $650.00 and gave the company an “overweight” rating in a research note on Monday, June 15th. Finally, Fox Advisors downgraded shares of Western Digital from an “overweight” rating to an “equal weight” rating in a report on Monday, June 22nd. Two analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $520.32.

Insider Activity at Western Digital

In other Western Digital news, insider Vidyadhara K. Gubbi sold 2,475 shares of the stock in a transaction on Monday, June 1st. The shares were sold at an average price of $556.24, for a total transaction of $1,376,694.00. Following the completion of the transaction, the insider owned 85,154 shares in the company, valued at $47,366,060.96. This trade represents a 2.82% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Bruce E. Kiddoo sold 750 shares of Western Digital stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $528.52, for a total transaction of $396,390.00. Following the completion of the transaction, the director directly owned 3,903 shares of the company’s stock, valued at $2,062,813.56. The trade was a 16.12% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 5,093 shares of company stock valued at $2,751,337. 0.18% of the stock is owned by corporate insiders.

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

Several large investors have recently added to or reduced their stakes in the stock. Rakuten Securities Inc. lifted its stake in shares of Western Digital by 4,070.0% in the 2nd 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 during the last quarter. Swiss RE Ltd. bought a new position in shares of Western Digital during the 4th quarter valued at approximately $32,000. JPL Wealth Management LLC purchased a new stake in Western Digital during the 3rd quarter valued at $33,000. BOKF NA raised its holdings in Western Digital by 6,700.0% during the 3rd quarter. BOKF NA now owns 272 shares of the data storage provider’s stock valued at $33,000 after buying an additional 268 shares during the period. Finally, Transamerica Financial Advisors LLC lifted its position in 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 buying an additional 134 shares during the last quarter. 92.51% of the stock is owned by institutional investors.

About Western Digital

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.