Western Digital (WDC), a provider of data storage solutions like hard-disk drives (HDDs) and solid-state drives (SSDs), is scheduled to announce its results for the third quarter of Fiscal 2026 on April 30. WDC stock has rallied 116% year-to-date and 920% over the past year, driven by robust demand for storage solutions in artificial intelligence (AI) data centers. Top Bank of America analyst Wamsi Mohan increased his price target for Western Digital stock to $415 from $375 and reiterated a Buy rating, expressing his optimism about the upcoming Q3 earnings.
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Double your WDC exposure with Tradr's WDCXWall Street expects WDC to report EPS (earnings per share) of $2.37 for Q3 FY26, reflecting 74.3% year-over-year growth. Revenue is projected to rise 41.5% to $3.24 billion.
BofA Analyst Expects Western Digital to Report Strong Results
Mohan expects Western Digital’s Q3 FY26 revenue, margins, and earnings per share (EPS) to exceed the high end of the guidance range. The 5-star analyst expects WDC to continue benefiting from higher pricing, as demand remains above supply, with $/TB (dollar/terabyte) expected to increase year-over-year.
Furthermore, Mohan expects Western Digital’s gross margin to expand 280 basis points quarter-over-quarter to 48.9%, way above 47.5% at the midpoint of the guidance range. In fact, the analyst expects the company to deliver a sequential increase in gross margin in every quarter in 2026.
The analyst noted that Western Digital is currently testing its new HAMR tech with two cloud service providers (CSPs). He expects HAMR production to ramp up in the first half of 2027. Mohan added that WDC also has two cloud service providers qualifying its 40TB UltraSMR ePMR platform. Mohan is bullish on WDC due to the secular growth of the HDD market, favorable supply and demand balance, strong EB (exabytes) growth driven by improved mix, and gross margin expansion. Consequently, he increased his Fiscal 2026 revenue and EPS outlook to $12.7 billion and $9.40, respectively, from $12.4 billion and $9.03.
The analyst increased his price target to reflect a higher multiple on increased optimism about top-line growth, higher margins, and positive estimate revisions over the longer term.
Is WDC a Good Stock to Buy?
Heading into Q3 earnings, Wall Street has a Strong Buy consensus rating on Western Digital stock based on 15 Buys and three Holds. The average WDC stock price target of $354.44 indicates 7.3% downside risk.
