Analysts Split on Western Digital After 11% Surge Before Q4 Results

Key Facts

1Western Digital stock surged 11% amid analyst divergence with price targets up to $1,050 and a downgrade.

2The CFO highlighted strong exabyte growth and significant incremental gross margins.

3The upcoming Q4 2026 earnings report on July 29 will focus on 40-terabyte ePMR volume and gross margin guidance.

Amid rising demand from data centers and AI fueling an expected structural HDD shortage, Western Digital shares surged 11% as analysts split sharply on the outlook. Some raised price targets to $1,050 while others downgraded the stock, according to reports from TIKR. The CFO highlighted strong exabyte growth and significant incremental gross margins.

The move comes after WDC shares closed at $651.88 on June 29, 2026, per market data, with a daily high of $652.98. The stock faces a divided view between optimism over hyperscaler demand and skepticism about the sustainability of current pricing and margins.

All eyes are on the Q4 fiscal 2026 earnings due July 29, with a focus on 40TB ePMR volume and gross margin guidance. The results will be critical in determining whether the company can sustain its growth momentum, especially as potential supply tightness in the sector could support pricing.