Western Digital (WDC), a data storage company, is set to announce its results for the third quarter of Fiscal 2026 on April 30. WDC stock has rallied 132% year-to-date, driven by reports that its high-capacity hard drives are largely sold out through 2026 amid strong AI data center demand. According to TipRanks’ Options Tool, options traders expect an 11.63% move in either direction in WDC stock in reaction to Q3 FY26 earnings. This implied move is higher than WDC stock’s average post-earnings move (in absolute terms) of 9.3% over the past four quarters.
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What to Expect from Western Digital on April 30
Wall Street forecasts Q3 FY26 EPS of $2.40 for WDC, marking a 76.5% year-over-year increase, with revenue expected to climb roughly 42% to $3.25 billion.
Investors will look forward to management’s commentary on the demand backdrop, along with updates on pricing and future orders. They will also watch progress on higher-capacity drives, while keeping an eye on supply constraints that could limit gains from strong AI-driven demand.
Top Analysts’ Views Ahead of WDC’s Q3 Earnings
Ahead of the Q3 print, top Evercore ISI analyst Amit Daryanani reiterated an Outperform rating on WDC with a $410 price target. He expects the company to beat and raise guidance, supported by strong demand and a favorable pricing environment. The analyst highlighted long-term agreements extending into 2027–2028, which improve revenue visibility. He also noted solid momentum in high-capacity drive shipments and progress on next-generation products. Near-term fundamentals remain strong, though execution on future technologies remains a key risk. Overall, Daryanani stays bullish, backed by continued AI-driven demand and margin improvement.
Likewise, top Cantor analyst C.J. Muse raised his price target on Western Digital to $500 from $420, while maintaining an Overweight rating. He expects a strong beat and raise, supported by robust nearline demand. Customers are shifting toward higher-capacity products, which is helping drive pricing higher.
At the same time, cost reductions are expected to support margin expansion. Muse sees a path to over 50% gross margins in the near term, with potential to reach 60% by late 2028.
Is WDC a Good Stock to Buy?
With 15 Buys and three Holds, Western Digital stock scores a Strong Buy consensus rating. The average WDC stock price target of $375.56 indicates a downside risk of 7.5%, following the massive rally over the past year.
