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Valued at a market cap of $26.2 billion, Western Digital Corporation (WDC) develops, manufactures, and sells data storage devices and solutions based on hard disk drive (HDD) technology. The San Jose, California-based company offers a wide-ranging portfolio of storage products, ranging from HDDs and solid-state drives (SSDs) to flash storage devices and enterprise systems.
This data storage solutions provider has considerably outperformed the broader market over the past 52 weeks. WDC has soared 69.5% over this time frame, while the broader S&P 500 Index ($SPX) has gained 20.1%. Moreover, on a YTD basis, the stock is up 67.6%, compared to SPX’s 8.6% rise.
Zooming in further, WDC has also outpaced the Technology Select Sector SPDR Fund’s (XLK) 29.9% uptick over the past 52 weeks and 14.4% return on a YTD basis.
WDC delivered stronger-than-expected Q4 earnings results on Jul. 30, and its shares surged 10.2% in the following trading session. Due to strong growth in its cloud end market, the company’s quarterly revenue improved 30% year-over-year to $2.6 billion, exceeding consensus estimates by 6.5%. Moreover, its profitability also looked strong, with adjusted gross margin expanding by 610 basis points year-over-year and adjusted operating income rising by a notable 147.3% from the year-ago quarter to $732 million. Additionally, its adjusted EPS of $1.66 topped the Wall Street forecast by 12.2%.
For fiscal 2026, ending in June 2026, analysts expect WDC’s EPS to grow 32.9% year over year to $6.02. The company’s earnings surprise history is mixed. It exceeded or met the consensus estimates in three of the last four quarters, while missing on another occasion.
Among the 22 analysts covering the stock, the consensus rating is a "Strong Buy” which is based on 18 “Strong Buy,” one "Moderate Buy,” and three “Hold” ratings.
This configuration is slightly less bullish than three months ago, with 19 analysts suggesting a “Strong Buy” rating.
On Aug. 5, Ananda Baruah from Loop Capital Markets maintained a "Buy" rating on WDC with a price target of $92, implying a 22.7% potential upside from the current levels.
The mean price target of $87.71 represents a 17% premium from WDC’s current price levels, while the Street-high price target of $100 suggests an ambitious upside potential of 33.4%.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
