New York, Jan 29, 2026, 18:08 EST — Trading after hours.
- Shares of Western Digital ended the day 0.5% lower following a volatile trading session.
- The company’s outlook surpassed Wall Street forecasts, fueling continued interest in the AI-storage trade.
- Investors are eyeing pricing, supply, and next week’s Innovation Day as the next catalysts.
Western Digital Corp (WDC) shares ended Thursday down 0.5%, closing at $278.41 after fluctuating between $264.59 and $297.50 during the day. Attention now turns to Friday’s session, following the company’s update released after the bell.
Timing is key. Storage stocks have turned into a quick gauge for whether the AI data-center ramp-up is still heating up or beginning to slow down. When a forecast beats expectations, it often lifts the entire sector.
Expectations are running high. Cloud giants, the largest buyers, are demanding more high-capacity drives, and the market is closely watching to see if prices hold steady as suppliers increase output.
Western Digital projects third-quarter revenue near $3.2 billion, plus or minus $100 million, surpassing analysts’ $2.96 billion estimate, according to LSEG data. The company also forecast adjusted earnings around $2.30 per share, beating expectations. Shares jumped roughly 2% in early after-hours trading. Analysts have highlighted strong prices amid demand outpacing supply. Meanwhile, Sandisk, Western Digital’s former flash unit, topped revenue forecasts and surged about 12% in extended trading. 1
Western Digital’s fiscal second-quarter revenue climbed 25% year-on-year to $3.02 billion. Adjusted earnings hit $2.13 per share, with a non-GAAP gross margin of 46.1%. CEO Irving Tan highlighted the quarter as a display of “disciplined execution” amid the “AI-driven data economy.” The company also posted free cash flow of $653 million, after capital expenditures, and declared a $0.125-per-share dividend payable March 18. 2
Adjusted, or non-GAAP, results exclude items like stock-based compensation and other charges. This approach helps traders cut through the noise in a business known for volatile swings in prices and product mix.
Seagate, which reported earnings two days before, highlighted ongoing pressure on mass-capacity storage demand. CEO Dave Mosley described the quarter as demonstrating “the durability of data center demand.” The company forecasted fiscal third-quarter revenue around $2.90 billion, with a $100 million margin either way, and announced a $0.74 dividend. 3
For Western Digital, the focus is shifting from just one quarter to the rhythm of incoming orders. Investors want details on cloud spending trends, how far visibility stretches across multiple quarters, and if ramping up supply will start to pressure prices.
The downside risk is straightforward. If data-center spending stalls, supply ramps up quicker than anticipated, or competitors push prices down, margins could take a hit. That scenario might rapidly turn the “AI storage” trade into a scramble to sell.
Next on the calendar is Western Digital’s Innovation Day set for Feb. 3 in New York. The company plans to showcase breakthroughs linked to the “AI-driven data economy.” Investors will be keeping an eye on how the stock moves once regular trading kicks back in on Friday. 4
