Western Digital stock tests margin outlook after strong fiscal Q1

Published on 11/12/2026 at 16:52 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Western Digital stock traded at 278.55 euros on Lang & Schwarz on Thursday, November 12. Strong pricing and demand support a higher second-quarter outlook.

Western Digital raises the bar

Fiscal first-quarter revenue rose 55% year over year as margins and adjusted earnings expanded sharply.
Management expects further revenue and margin growth in fiscal second quarter 2027.
The board raised the quarterly dividend by 17%, with payment scheduled for December 17, 2026.

Western Digital, US9581021055, Illustration mit AI erstellt.

Western Digital reported strong fiscal first-quarter results for the period ended October 2, 2026, and raised its operating outlook for the next quarter. The company disclosed the figures in its WD press release published on October 22.

Western Digital stock traded at 278.55 euros on Lang & Schwarz at 16:39 CET on Thursday, November 12, 2.02 percent below the Xetra close of Wednesday, November 11. The comparison uses the prior Xetra session because the current quote was recorded before the Thursday close.

Strong quarter lifts expectations

Fiscal first-quarter revenue reached 4.381 billion US dollars, up 55 percent from the year-earlier period. GAAP gross margin rose to 57.8 percent, while non-GAAP gross margin reached 58.1 percent. Non-GAAP diluted earnings per share increased 161 percent year over year to 4.64 US dollars.

Management linked the outlook to robust exabyte growth and improved pricing. For fiscal second quarter 2027, it expects revenue of 5.1 billion US dollars at the midpoint of a range of plus or minus 100 million US dollars. Non-GAAP gross margin is projected at 60 percent to 61 percent, with adjusted earnings per share of 5.80 US dollars plus or minus 0.20 US dollars.

Dividend adds to investor focus

Western Digital's board declared a quarterly cash dividend of 0.175 US dollars per share, a 17 percent increase. The dividend is scheduled for payment on December 17, 2026, to shareholders of record at the close of business on December 4.

The stronger forecast raises the execution bar for pricing, product transitions and customer demand. Investors will watch whether higher-capacity storage and cloud infrastructure spending can support the planned margin expansion.

US technology shares remain sensitive to expectations for artificial intelligence infrastructure spending. See current market reports for the wider market environment.

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