"Western Digital ( NASDAQ:WDC) has delivered an exceptional start to 2026, with shares climbing 64.9% year-to-date through yesterday's close. The broader tech sector, measured by the Technology Select Sector SPDR ( NYSEARCA:XLK), has slipped 0.68% in the same period. Best of all, Western Digital is now the second-best performer in the entire S&P 500, trailing only Sandisk's (Nasdaq: SNDK) incredible 166% jump. Not surprisingly, both stocks are rallying thanks to AI-driven demand."
"Western Digital's fiscal Q2 2026 results, filed January 29, 2026, validated market enthusiasm. The company delivered revenue of $3.02 billion, beating the $2.95 billion consensus, while non-GAAP EPS of $2.13 topped estimates of $1.94. Gross margin expanded to 46.1%, while operating income surged 6.57% year-over-year to $908 million. Net income jumped 210% to $1.84 billion, and free cash flow more than doubled, climbing 127.53% to $653 million."
"CEO Irving Tan framed the results around the company's core thesis: "Western Digital's strong performance this quarter reflects our disciplined execution to meet demand in the AI-driven data economy, and the confidence our customers place in our ability to deliver reliable, high-capacity HDDs at scale." Year-over-year comps are more difficult as the company spun SanDisk off earlier in 2025, but the future looks bright. Wall Street sees Fiscal 2026 adjusted EPS at $8.86."
Western Digital's stock rose 64.9% year-to-date through yesterday, outperforming the broader tech sector and ranking as the second-best S&P 500 performer behind Sandisk, driven by AI-related demand. Fiscal Q2 2026 revenue reached $3.02 billion with non-GAAP EPS of $2.13, margin expansion to 46.1%, operating income of $908 million, net income of $1.84 billion, and free cash flow of $653 million. CEO Irving Tan cited disciplined execution to meet AI-driven storage demand. Year-over-year comparisons are complicated by the SanDisk spin-off, while Wall Street forecasts adjusted EPS of $8.86 for fiscal 2026 and $13.30 for 2027.
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