"Cantor Fitzgerald raised Western Digital's price target to $500, citing strong Nearline demand and a favorable product mix, while Bank of America increased its target to $495, emphasizing the tight HDD supply."
"Western Digital's fiscal Q2 2026 revenue reached $3.02 billion with a non-GAAP EPS of $2.13, exceeding consensus estimates by 10%, and gross margin improved significantly year over year."
"The HDD industry is characterized by a three-player oligopoly, with Western Digital, Seagate Technology, and another key player, which has led to a structural shift in supply and demand dynamics."
"CEO Irving Tan highlighted disciplined execution in meeting demand within the AI-driven data economy, guiding fiscal Q3 revenue expectations to approximately $3.2 billion with a gross margin of 47% to 48%."
Western Digital received price target increases from Cantor Fitzgerald and Bank of America, reflecting confidence in its growth potential amid a tight HDD supply. Analysts expect strong performance driven by robust Nearline demand and a favorable product mix. The company reported significant revenue and earnings growth, with a positive outlook for future quarters. The HDD market remains constrained, allowing Western Digital to maintain pricing power and generate substantial free cash flow for buybacks and dividends.
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