| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 26 | 18.4x | 17.8x | Bottom tier | |
Growth | 88 | 35.7% | 7.1% | Top tier | |
Quality | 82 | 33.8% | 4.5% | Top tier | |
Safety | 92 | 0.1x | 2.6x | Top tier | |
Capital Return | 27 | 0.11% | 2.12% | Bottom tier | |
Momentum | 82 | 369.9% | 2.9% | Top tier | |
Sentiment | 60 | 12 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Western Digital Corporation is a specialized company following the separation of the SanDisk business, focused on hard disk drives HDD, and derives most of its business from meeting the high-capacity storage needs of cloud data centers. In Q4 fiscal 2026, the Cloud segment represented about 89% of revenue at $3.3 billion, while Client contributed 6% at $225 million and Consumer 5% at $187 million; making demand for nearline drives from cloud customers the company’s largest economic driver.
Revenue in Q4 fiscal 2026 reached about $3.75 billion, up 44% year over year, with 231 exabytes shipped, up 22%. Gross profit according to EDGAR data was about $2.0 billion and net income was $3.2 billion, while non-GAAP results showed a gross margin of 54.4%, operating income of $1.66 billion, an operating margin of 44.2%, and earnings per share of $3.56. The company also generated free cash flow of $1.3 billion and a free cash flow margin of 34% during the quarter.
In fiscal 2026, revenue rose 36% to $12.9 billion, while gross profit according to EDGAR reached about $6.3 billion, net income was $9.4 billion, and earnings per share were $24.28. On a non-GAAP basis, gross margin expanded 970 basis points to 49.1%, operating margin reached 37.3%, and earnings per share doubled to $10.22, while free cash flow reached $3.5 billion at a margin of 27%. Western Digital ended the year with net cash of $500 million after reporting $1.6 billion in cash and $1.1 billion in debt.
The analyst consensus is “Buy,” with an average price target of $647.58, within a wide range from $400 to $1,050; the average is below the 52-week range high of $799.87, while the highest target exceeds it. No standardized price-to-earnings ratio is available in the provided information, and the large gap between Morningstar’s $420 target and the consensus average, together with the share-price decline following the August 6, 2026 results, reflects material disagreement over margin sustainability and the pace of exabyte shipment growth.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
Management links growth to demand for data storage from cloud services, inference AI, Agentic AI, and physical AI. The company expects Q1 fiscal 2027 revenue of $4.1 billion, plus or minus $100 million, and year-over-year growth of 45% at the midpoint. It also targets exabyte shipment growth exceeding 25% over the medium and long term, supported by higher-capacity ePMR, UltraSMR, and HAMR drives.
Western Digital began shipping ePMR drives with capacities of up to 40 terabytes during Q4 fiscal 2026, and they are entering volume production with two customers. The company targets the 40-terabyte platform to represent more than 50% of nearline exabytes by Q3 fiscal 2027. According to the roadmap, it plans to ship 44-terabyte HAMR drives in the first half of calendar 2027, followed by 50-terabyte products in the second half.
Cloud generated $3.3 billion in revenue and represented 89% of the total, with year-over-year growth of 43%. Client generated about $225 million, or 6% of revenue, up 61% year over year, while Consumer recorded about $187 million, or 5%, up 38%. The latter two segments benefited from improved pricing, but Cloud’s dominance makes results highly dependent on data center customers’ demand for nearline drives.
Automated analysis for informational purposes only — not investment advice.
Non-GAAP gross margin reached 54.4% in Q4 fiscal 2026, up 1,310 basis points year over year. Operating margin reached 44.2% after operating income rose to $1.66 billion, while free cash flow was $1.3 billion at a margin of 34%. For fiscal 2026, free cash flow reached $3.5 billion, or 27% of revenue.
The first risk is the concentration of 89% of Q4 fiscal 2026 revenue in Cloud and the dependence of shipments on several large customers with volatile quarterly demand. Exabyte growth also slowed to 22% in that quarter, while the expected acceleration depends on ramping ePMR production and launching HAMR on schedule. Margin competition, trade tensions related to Chinese memory suppliers, and the wide range of analyst targets between $400 and $1,050 add further sources of uncertainty.
