Western Digital is expected to report Q1 2026 revenue of $3.24 billion and EPS of $2.40, with the stock currently trading at $402.56, slightly above the average analyst price target of $375.56.
Investors are primarily focused on Non-GAAP gross margin expansion, which is projected to reach approximately 47.5% due to robust pricing power in the data center segment. Market demand for high-capacity nearline hard disk drives remains critical, as AI infrastructure requirements have reportedly led to supply being sold out through the end of 2026.
Following its strategic flash business separation, the company has effectively repositioned itself as a pure-play infrastructure provider, with nearly 90% of its revenue now linked to cloud and AI data center growth.