NEW YORK, July 26, 2026, 5:00 p.m. EDT — U.S. markets closed.
- Western Digital closed Friday at $519.80, down 6.9%. It still gained 8.9% for the week.
- The fiscal fourth-quarter earnings estimate rose 20% over three months to $3.30 per share.
- Seagate Technology NASDAQ:STX reports Tuesday. Western Digital follows on August 5.
Western Digital NASDAQ:WDC ended last week with a hard reversal. Shares fell 6.9% Friday, yet finished the week 8.9% higher.
That gain beat the S&P 500 by about 9.5 percentage points. The benchmark lost 0.6% during the same period.
The price and earnings curves are moving in opposite directions. Western Digital’s latest quarterly profit estimate is $3.30 per share. That is up from $2.75 three months ago.
Meanwhile, Friday’s close stood 35% below the June 18 intraday high. The stock reached $799.87 that day.
Friday’s drop also came on modest turnover. Volume was 4.8 million shares, about 43% below the 65-day average.
Friday-to-Friday data show both large hard-drive makers beating the broader market. Tuesday’s rally was then partly unwound.
| Security | Tuesday, July 21 | Friday, July 24 | Full week |
|---|---|---|---|
| Western Digital | +12.5% | -6.9% | +8.9% |
| Seagate Technology | +11.1% | -6.8% | +8.1% |
| S&P 500 | +0.9% | +0.1% | -0.6% |
The Tuesday surge came during a 5.2% semiconductor-index rebound. By Friday, the chip index had fallen more than 4%.
Lindsey Bell, chief investment strategist at 248 Ventures, linked the rebound to fear of missing out. She warned that the stocks were “priced for perfection.” Reuters
Seagate now provides the week’s main industry test. It will publish fiscal fourth-quarter results after Tuesday’s closing bell.
The company previously guided for $3.45 billion in revenue. It forecast adjusted earnings of $5.00 per share, both with narrow ranges.
For Western Digital investors, Seagate’s outlook will be the key read-through. Pricing, cloud demand and capacity comments matter most.
Western Digital’s own operating base remains strong. Fiscal third-quarter revenue rose 45% to $3.34 billion. Adjusted gross margin reached 50.5%, while adjusted earnings were $2.72 per share.
Management’s fourth-quarter midpoint calls for $3.65 billion in revenue. It also projects a 51.5% adjusted gross margin and $3.25 in earnings.
Those figures imply 9.4% sequential revenue growth. They also point to a one-percentage-point margin increase and 19.5% earnings growth.
Chief Executive Irving Tan said AI data must be “stored persistently and cost-efficiently on HDDs.” The company separated its flash business in 2025, leaving a more direct hard-drive exposure. Western Digital Corporation
The current earnings estimate sits five cents above management’s midpoint. Western Digital must therefore deliver more than a simple guidance match when it reports August 5.
Broader risk also remains high. The Federal Reserve meets this week, alongside a dense technology earnings calendar.
Risks: A weaker Seagate outlook could reverse Western Digital’s weekly gain. Tariffs, supplier concentration, demand swings and competitive pricing also remain material company risks.
The near-term question is validation. Earnings estimates are still rising, but Friday showed how quickly investor conviction can break.
