Western Digital stock holds focus on AI storage outlook

Published on 11/11/2026 at 17:45 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Western Digital stock remains focused on stronger cloud and AI storage demand. Management expects another quarter of higher revenue and margins.

AI Demand Supports Storage Growth

Western Digital's fiscal first-quarter revenue increased 55 percent year over year.
Management expects fiscal second-quarter revenue of USD 5.1 billion at the midpoint.
Higher-capacity drives and expanding AI workloads remain central to the outlook.

Western Digital, US9581021055, Illustration mit AI erstellt.

Western Digital's storage outlook remains firmly linked to cloud expansion and artificial intelligence workloads. In its fiscal first-quarter review published on November 4, Zacks Research said revenue rose 55 percent year over year to USD 4.38 billion and non-GAAP earnings reached USD 4.64 per share.

The company expects fiscal second-quarter revenue of USD 5.1 billion, plus or minus USD 100 million. At the midpoint, the guidance implies 69 percent year-over-year growth, while non-GAAP gross margin is forecast at 60 percent to 61 percent. Zacks Research said higher-capacity drives and favorable pricing are key supports for the margin outlook.

Capacity Drives Shape The Next Quarter

Western Digital expects its newest ePMR platform to approach 30 percent of nearline shipments in the fiscal second quarter and 50 percent in the third quarter. The company also plans first-generation HAMR volume shipments for the first half of calendar 2027.

Those product transitions are intended to increase capacity per drive and lower cost per terabyte over time. AI inference, agentic systems and physical AI applications are creating additional data that must be stored, broadening demand beyond traditional hyperscale customers.

Western Digital stock traded at 285.35 euros on Lang & Schwarz at 17:43 CET on Wednesday, November 11, 2026.