Western Digital Earnings Estimates Rise Despite Recent Stock Run

Earnings estimates for WDC have surged following a blowout fiscal Q3 2026 in which the company reported EPS of $2.72 — beating the $2.36 consensus estimate by over 15% — while revenue of $3.34 billion was powered by explosive demand for NAND flash and HDD storage in AI data center deployments. The results sent the stock up 17% post-earnings, extending an already remarkable 150% run through 2026 that has divided analyst opinion between disciplined value assessors and AI supercycle believers.

Despite the stock's extended run, 22 analysts covering WDC maintain a Buy consensus with an average price target of $337, suggesting further upside is still in the model for the majority of the Street. Management guided Q4 revenue to $3.65 billion — approximately 40% higher year-over-year at the midpoint — and raised its quarterly dividend by 20% to $0.15 per share, signaling confidence in the durability of the AI storage demand cycle well into fiscal 2027.

The central debate is whether the AI infrastructure buildout represents a true multi-year supercycle for flash and HDD storage, or whether current pricing reflects demand pull-forward that will normalize as hyperscaler capex eventually moderates. Recent insider selling activity has added nuance to the bull case: some executives have monetized gains after the historic run, a pattern worth monitoring even as earnings estimates continue to rise. For investors, the tension between strong fundamental momentum and elevated valuation multiples in a historically cyclical sector is the defining risk-reward question heading into the second half of 2026.

Related Stocks

• WDC
• BRK.A
• NUE