Western Digital (NASDAQ:WDC) Releases Q1 2027 Earnings Guidance

Western Digital (NASDAQ:WDC) issued an update on its first quarter 2027 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 3.850-4.150 for the period, compared to the consensus estimate of 3.630. The company issued revenue guidance of $4.0 billion-$4.2 billion, compared to the consensus revenue estimate of $3.9 billion.

Western Digital Stock Down 5.4%

NASDAQ:WDC traded down $29.39 during trading hours on Wednesday, hitting $519.17. 9,391,189 shares of the stock were exchanged, compared to its average volume of 8,921,373. The company has a market capitalization of $178.95 billion, a P/E ratio of 31.00 and a beta of 2.14. The company’s 50 day moving average is $569.37 and its two-hundred day moving average is $413.52. Western Digital has a twelve month low of $73.14 and a twelve month high of $799.87.

Western Digital (NASDAQ:WDC) last released its earnings results on Wednesday, August 5th. The data storage provider reported $3.56 EPS for the quarter, beating the consensus estimate of $3.31 by $0.25. The company had revenue of $3.75 billion during the quarter, compared to analysts’ expectations of $3.70 billion. Western Digital had a return on equity of 42.95% and a net margin of 55.29%.Western Digital has set its Q1 2027 guidance at 3.850-4.150 EPS. On average, equities research analysts expect that Western Digital will post 9.61 EPS for the current year.

Analyst Ratings Changes

Several analysts have weighed in on WDC shares. Rosenblatt Securities boosted their price objective on Western Digital from $340.00 to $500.00 and gave the stock a “buy” rating in a report on Friday, May 1st. Wells Fargo & Company raised their target price on shares of Western Digital from $575.00 to $730.00 and gave the company an “overweight” rating in a research note on Friday, July 10th. Robert W. Baird boosted their price target on shares of Western Digital from $310.00 to $450.00 and gave the stock an “outperform” rating in a research note on Monday, May 4th. UBS Group reissued a “neutral” rating and set a $560.00 price target on shares of Western Digital in a research note on Monday, July 13th. Finally, Mizuho increased their price target on shares of Western Digital from $550.00 to $685.00 and gave the company an “outperform” rating in a research report on Monday, June 8th. Two analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $520.32.

Insiders Place Their Bets

In other news, insider Vidyadhara K. Gubbi sold 2,475 shares of the company’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $556.24, for a total transaction of $1,376,694.00. Following the sale, the insider owned 85,154 shares in the company, valued at $47,366,060.96. This represents a 2.82% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, Director Bruce E. Kiddoo sold 750 shares of the stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $528.52, for a total value of $396,390.00. Following the completion of the sale, the director directly owned 3,903 shares of the company’s stock, valued at approximately $2,062,813.56. The trade was a 16.12% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 5,093 shares of company stock valued at $2,751,337 in the last 90 days. 0.18% of the stock is currently owned by insiders.

Trending Headlines about Western Digital

Here are the key news stories impacting Western Digital this week:

• Positive Sentiment: Western Digital reported fiscal fourth-quarter EPS of $3.56, exceeding the analyst consensus of $3.31, while revenue of $3.75 billion topped the $3.70 billion estimate. Profit increased more than elevenfold year over year, supported by continued demand for memory and data-storage technology. Western Digital Profit Surges as Revenue Grows
• Positive Sentiment: Management issued first-quarter fiscal 2027 EPS guidance of $3.85–$4.15, above the $3.63 consensus estimate, and revenue guidance of $4.0–$4.2 billion, ahead of the $3.9 billion forecast. The outlook signals continued strength in storage demand and the AI infrastructure buildout.
• Positive Sentiment: The quarter’s 55.29% net margin and 42.95% return on equity reinforce the company’s improved profitability and operating momentum.
• Neutral Sentiment: Analysts had already expected a strong quarter, with forecasts reflecting higher EPS and revenue than the prior year. As a result, the earnings beat and above-consensus guidance may have been insufficient to exceed elevated investor expectations. Western Digital Earnings Are Imminent
• Negative Sentiment: The stock fell after the report, suggesting investors were selling the news or wanted an even stronger outlook. Western Digital had reportedly gained more than 222% year to date, leaving the shares vulnerable to profit-taking and a high valuation near a 31 price-to-earnings ratio. WDC Earnings: Western Digital Stock Falls Despite Strong Financial Results

Institutional Investors Weigh In On Western Digital

Hedge funds have recently bought and sold shares of the company. Rakuten Securities Inc. increased its position in Western Digital by 4,070.0% during the second quarter. Rakuten Securities Inc. now owns 417 shares of the data storage provider’s stock worth $27,000 after buying an additional 407 shares during the last quarter. Swiss RE Ltd. bought a new position in shares of Western Digital during the 4th quarter worth approximately $32,000. JPL Wealth Management LLC acquired a new position in shares of Western Digital during the 3rd quarter worth approximately $33,000. BOKF NA raised its stake in Western Digital by 6,700.0% in the 3rd quarter. BOKF NA now owns 272 shares of the data storage provider’s stock valued at $33,000 after acquiring an additional 268 shares during the period. Finally, Transamerica Financial Advisors LLC lifted its holdings in Western Digital by 77.0% during the 4th quarter. Transamerica Financial Advisors LLC now owns 308 shares of the data storage provider’s stock valued at $53,000 after purchasing an additional 134 shares during the last quarter. 92.51% of the stock is currently owned by institutional investors and hedge funds.

About Western Digital

Western Digital Corporation is a global data storage company that designs, manufactures and sells a broad range of storage devices and systems for personal, enterprise and cloud applications. Headquartered in San Jose, California, the company develops hard disk drives (HDDs), solid-state drives (SSDs), NAND flash components and finished storage products used in PCs, external storage, servers, network-attached storage (NAS) and embedded systems.

Its product portfolio spans consumer and commercial markets, including internal and external HDDs and SSDs, removable flash memory products and storage platforms for data center and enterprise environments.