# Western Digital Corporation (WDC)

> Source: Nexqual · https://nexqual.com/WDC · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Western Digital Corporation (WDC), nexqual.com/WDC" · informational, not investment advice.

**Price:** USD 354.19 (-6.43% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 378.51 · day 348.23–367.34 · 52w 121.72–799.87 · market cap $133B · NMS

## Key facts
- Last four reported quarters (through Jul 3, 2026): revenue $12.9B, net income $9.42B (72.9% margin), free cash flow $3.51B (SEC filings).
- Valuation: P/E 14.1x (avg 17.1x at the last 2 fiscal year-ends), EV/EBITDA 27.4x, net cash $527M.
- Earnings quality: non-operating income $5.45B vs operating income $4.45B over the last four quarters; P/E excluding non-operating income ≈31.3x (estimate: non-operating income taxed at the company's 4.9% effective rate).
- 1 of 80 tracked superinvestors hold WDC (13F, Q2 2026): 1 new, 0 added, 0 reduced, 0 unchanged.
- Analysts: Buy (mean 2.04 on a 1–5 scale) (26 analysts), mean target USD 636.08 (range 405–1,050).
- Total return with dividends: 1Y +182.3% vs S&P 500 +14.9%; 5Y +725.4% vs S&P 500 +80.3%.
- Next earnings: 2026-10-22, EPS estimate USD 5.22, revenue estimate $4.73B.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $18.8B | $6.25B | $6.32B | $9.52B | $12.9B | $12.9B |
| Gross profit | $5.87B | $1.39B | $1.77B | $3.69B | $6.31B | — |
| Operating income | $2.39B | -$548M | -$403M | $2.33B | $4.45B | $4.45B |
| Net income | $1.55B | -$1.68B | -$798M | $1.89B | $9.42B | $9.42B |
| EPS (diluted) | $3.70 | -$5.37 | -$2.61 | $5.12 | $24.28 | — |
| Free cash flow | $758M | -$1.23B | -$781M | $1.28B | $3.51B | $3.51B |
| Gross margin | 31.3% | 22.2% | 28.1% | 38.8% | 48.9% | — |
| Operating margin | 12.7% | -8.8% | -6.4% | 24.5% | 34.5% | 34.5% |
| Net margin | 8.2% | -26.9% | -12.6% | 19.8% | 72.9% | 72.9% |
| Revenue growth | +11.1% | -66.7% | +1.0% | +50.7% | +35.7% | — |
| Cash + short-term investments | $2.33B | $2.02B | $1.55B | $2.11B | $1.58B | — |
| Total debt | $7.02B | $7.07B | $7.43B | $4.71B | $1.05B | — |
Fiscal years end Jul. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jul 3, 2026)
P/E 14.1x · P/E ex non-operating (est.) ≈31.3x · P/S 10.3x · EV/EBITDA 27.4x · EV/Sales 10.2x · P/FCF 37.8x · P/B 15.0x · FCF yield 2.65% · Earnings yield 7.11% · Dividend yield (paid, TTM) 0.13% · Buyback yield (TTM) 1.96% · Net cash $527M · EV $132B
P/E at fiscal year-ends: Jul 2026 22.1x, Jun 2025 12.2x.

## Superinvestors (SEC 13F-HR, Q2 2026)
1 of 80 tracked investors hold WDC. Each row is the investor's latest 13F; change is vs their prior-quarter share count.
| Investor | Firm | % of portfolio | Value | Change |
|---|---|---|---|---|
| Lee Ainslie | Maverick Capital | 0.01% | $1.2M | New position |

## Analysts
Consensus Buy (mean 2.04 on a 1–5 scale), 26 analysts; mean target USD 636.08 (low 405, high 1,050).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-21 | B of A Securities | Target raised | Buy | $720 → $800 |
| 2026-10-20 | Morgan Stanley | Target lowered | Overweight | $676 → $643 |
| 2026-10-16 | Wells Fargo | Target lowered | Overweight | $730 → $450 |
| 2026-10-12 | UBS | Target lowered | Neutral | $525 → $470 |
| 2026-08-07 | Citigroup | Target lowered | Buy | $800 → $740 |
| 2026-08-06 | TD Cowen | Target raised | Buy | $500 → $540 |
| 2026-08-06 | UBS | Target lowered | Neutral | $560 → $525 |
| 2026-08-06 | Rosenblatt | Target lowered | Buy | $900 → $800 |
| 2026-07-13 | Citigroup | Target raised | Buy | $685 → $800 |
| 2026-07-10 | Wells Fargo | Target raised | Overweight | $575 → $730 |
| 2026-07-08 | Susquehanna | Target raised | Neutral | $360 → $500 |
| 2026-07-01 | B of A Securities | Target raised | Buy | $610 → $732 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +182.3% | +725.4% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +183.3% | +52.4% |
| Volatility (annualized) | 80.9% | 55.3% |
| Max drawdown | -55.5% (Jun 2026→Oct 2026) | -55.5% (Jun 2026→Oct 2026) |

## Peers (Computer Hardware)
STX (Seagate Technology Holdings PLC) USD 642.14 -7.86% · SNDK (Sandisk Corporation) USD 1,260.93 -8.51% · ANET (Arista Networks, Inc.) USD 171.07 -7.19% · DELL (Dell Technologies Inc.) USD 452.95 -6.78% · P (Everpure, Inc.) USD 121.2 -7.43% · HPQ (HP Inc.) USD 33.76 +7.79%

## More
Full page: https://nexqual.com/WDC · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)


Other companies that name WDC in their own reports (relationship from WDC's side):

| Relationship | Company | Their filing | Sentence |
|---|---|---|---|
| related | Sandisk Corp (SNDK) | 10-K 2026-08-17 | "Additional information regarding our outstanding notes due to (from) Western Digital Corporation is included in Part II, Item 8., Note 10, Related Parties and Related Commitments and Contingencies of …" |
| competitor | Seagate Technology Holdings plc (STX) | 10-K 2026-08-04 | "Our global competitors include HDD manufacturers such as Western Digital Corporation and Toshiba Electronics Devices & Storage Corporation along with NAND flash suppliers that provide and enable alter…" |
| partner | ONE STOP SYSTEMS, INC. (OSS) | 10-K 2026-03-18 | "Through a strategic agreement with Western Digital, we acquired an exclusive software license for Ion Accelerator™ Storage Area Networking ("SAN") source code and software development rights, and we h…" |
| customer | Backblaze, Inc. (BLZE) | 10-K 2026-03-10 | "Also, in October 2023, Western Digital, another one of our hard drive suppliers, announced that it would spin-out its hard drive and other selected businesses into a separate company." |
| customer | Fortinet, Inc. (FTNT) | 10-K 2026-02-25 | "Our limited source components for particular appliances and suppliers of those components include specific types of CPUs from Intel and AMD, network and wireless chips from Broadcom, Marvell, Qualcomm…" |
| partner | HITACHI LTD (HTHIY) | 20-F 2011-06-24 | "In March 2011, we entered into an agreement with Western Digital to sell our HDD business to Western Digital." |

## Revenue by product line (quarter ended 2026-10-02)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Cloud | $3.87B | 88.3% | +54.1% |
| Client | $320.0M | 7.3% | +119.2% |
| Consumer | $193.0M | 4.4% | +19.1% |
| Total revenue | $4.38B | 100% | — |

## Revenue by region (quarter ended 2026-10-02)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Americas | $2.08B | 47.5% | +89.2% |
| Asia | $1.71B | 39.0% | +45.4% |
| Europe, Middle East and Africa | $592.0M | 13.5% | +9.0% |
| Total revenue | $4.38B | 100% | — |

## Customer concentration

Period ended 2026-10-02: 14%, 13% of revenue from unnamed direct customers (10-Q, filed 2026-10-23).

## Company outlook (8-K filed 2026-10-22)

- "WD's Fiscal First Quarter 2027 Conference Call WD will host a conference call to discuss its fiscal first quarter 2027 results and business outlook for the fiscal second quarter of 2027 today at 1:30 p.m."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-12-31) | $5.22 | $4.31 | +21.2% | $4.73B | 20 |
| Next quarter (ends 2027-03-31) | $6.09 | $4.89 | +24.5% | $5.24B | 19 |
| Current fiscal year (ends 2027-06-30) | $22.02 | $18.23 | +20.8% | $19.90B | 24 |
| Next fiscal year (ends 2028-06-30) | $35.55 | $27.15 | +31.0% | $27.45B | 23 |

## Options: expected move (Cboe, 15-min delayed)

| Expiration | Days | ATM IV | Expected move |
|---|---|---|---|
| 2026-10-30 | 7 | 94.9% | ±11.2% |
| 2026-11-06 | 14 | 81.7% | ±13.2% |
| 2026-11-13 | 21 | 75.1% | ±14.8% |
| 2026-11-20 | 28 | 72.5% | ±16.2% |
| 2026-11-27 | 35 | 68.9% | ±17.3% |
| 2026-12-04 | 42 | 67.3% | ±18.4% |
| 2026-12-18 | 56 | 66.7% | ±20.9% |
| 2027-01-15 | 84 | 65.5% | ±25.0% |