Western Digital Leverages AI Boom to Forecast Revenue Above Estimates

Published: 2026-05-01 02:30:14 ET WDC

The storage specialist anticipates robust demand, driven by artificial intelligence infrastructure, despite a post-announcement dip in its share price.

Esteban Tesson

Published on 05/01/2026 at 02:30 am EDT

Western Digital has issued Q4 revenue guidance that exceeded expectations, projecting approximately $3.65bn, plus or minus $100m, above the $3.46bn anticipated by analysts. This momentum is underpinned by surging demand for high-capacity storage solutions, fueled by corporate investment in artificial intelligence and the requirements for processing massive data volumes.In particular, the group is benefiting from the expansion of AI inference applications, which require significant storage infrastructure and bolster pricing power across the sector. Since the spin-off of its flash memory business, which became Sandisk in 2025, Western Digital has pivoted its focus towards data centers. This strategic shift is accompanied by an active shareholder return policy, featuring a share buyback program totaling $6bn.In Q3, the company reported a 45% increase in revenue to $3.34bn, beating estimates, while adjusted EPS reached $2.72, against the $2.39 forecast. Despite these favorable prospects, the stock fell about 6% in after-hours trading on Thursday, even though it has boasted a YTD gain of over 100% amid generalized optimism for the storage sector.