New York, January 30, 2026, 11:14 (EST) — Regular session
- Western Digital shares dropped roughly 7% in late morning trading despite the company beating earnings estimates and issuing a forecast
- The HDD maker expects third-quarter revenue around $3.2 billion, surpassing Wall Street forecasts
- Investors are focused on Feb. 3 Innovation Day, looking for updates on demand and the product roadmap
Western Digital shares dropped roughly 7% on Friday, reversing sharply after earnings and sliding back during regular hours. The stock fell to $258.99, down $19.42, after an opening of $278.41 and trading as high as $296.80 and as low as $256.57.
The move follows the company’s forecast for third-quarter revenue and profit to beat Wall Street expectations, driven by steady demand for high-capacity hard drives that support expanding AI data storage needs. Shares gained roughly 2% in after-hours trading Thursday and have already more than tripled in 2025, narrowing the margin for error. (Reuters)
Late Thursday, Western Digital reported fiscal Q2 revenue of $3.02 billion, with non-GAAP earnings at $2.13 per share—these figures exclude items like restructuring charges. CEO Irving Tan highlighted the company’s “disciplined execution to meet demand in the AI-driven data economy.” The firm expects third-quarter revenue around $3.2 billion, plus or minus $100 million. (Nasdaq)
On the earnings call, CFO Kris Sennesael remarked that the company is “pretty much sold out for calendar 2026,” citing solid purchase orders and long-term deals with major clients. He also noted Western Digital still holds 7.5 million Sandisk shares and plans to sell them before the one-year mark since the separation, aiming to use the proceeds to pay down debt. (Investing)
The wider storage sector has seen plenty of swings. Sandisk, which split from Western Digital last year, surged in after-hours trading following a bullish forecast fueled by AI demand. Meanwhile, Western Digital and several other storage firms have been on a solid rally this month. (Reuters)
A broader AI hardware rally helped lift storage and chip-related stocks this week. Seagate surged 17.7% on Wednesday as investors hunted for data-center plays. Louise Dudley, portfolio manager at Federated Hermes, noted that firms throughout the supply chain are seeing “conditions are improving” and are “expanding their growth plans.” (Reuters)
Hard drives still operate in a cyclical market. Any slowdown in cloud spending, a quicker move to flash storage, or an easing of supply could swiftly pressure prices and margins, despite longer contracts.
Attention shifts to Western Digital’s Innovation Day in New York on Feb. 3, set from 9:30 a.m. to 11:30 a.m. ET. The company plans to unveil product and technology updates focused on storage needs in the AI era. (Nasdaq)
