Western Digital is expected to report Q4 2026 consensus revenue of $3.69 billion and earnings of $3.34 per share, with the current stock price of $527.22 trading significantly below the average analyst target of $638.83. Investors are primarily focused on cloud storage revenue, which now represents nearly 90% of total sales as hyperscale demand for high-capacity drives accelerates due to generative AI workloads.
Recent performance has been bolstered by a sold-out hard drive production schedule through the end of 2026 and aggressive pricing power in the NAND flash market. The market is also looking for updates on the company's strategic separation into two independent, publicly traded companies for its HDD and Flash businesses, which is expected to unlock further shareholder value.