# Western Digital Stock Q3 2026: Revenue Up 55% as Exabytes and Pricing Climb
> Western Digital stock Q3 2026: revenue rose 55% to $4.38bn, GAAP gross margin hit 57.8%, EPS was $4.63 and Q2 revenue is guided up 66% to 72%.

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## Facts
- Ticker: WDC
- QSILabs fair value: $247.70 USD
- Price: $338.59 (as of 2026-11-02)
- As of: Q3 2026 results (fiscal Q1 2027, quarter ended 2026-10-02, reported 2026-10-22); balance sheet from Form 10-Q for the quarter ended 2026-10-02; price as of 2026-11-02 close
- Fiscal period: Q3 2026 (July-September 2026; Western Digital fiscal Q1 2027)
- Published: 2026-11-02
- Updated: 2026-11-02
- Author: QSI Labs Research
- Canonical: https://www.quantitativesuperintelligencelabs.com/research/western-digital-stock-q3-2026-earnings-exabytes-hamr/

## Short answer
Western Digital stock Q3 2026 is a story of a hard drive boom and a share price that has already given back half of its gains. In the three months to 2 October 2026, its fiscal first quarter of 2027, Western Digital's revenue rose 55% to $4,381m as it shipped 22% more exabytes of storage at prices per terabyte 28% higher. The GAAP gross margin rose to 57.8% from 43.5%, diluted earnings per share rose to $4.63 from $3.07, and the company guided December-quarter revenue up 66% to 72%. The shares closed at $338.59 on 2 November 2026, up 96.5% for the year but 54.6% below their June high. Our discounted cash flow model values the shares at $247.70, about 0.73 times the price; the gap comes mainly from our assumption that today's margins, the highest in the company's recent history, fall back towards their long-run average by fiscal 2036.

## Key takeaways
- Revenue grew 55%. Revenue was $4,381m, up from $2,818m a year earlier and $3,747m in the June quarter. Cloud, 88% of revenue, grew 54% to $3,868m.
- Volume and price both rose. Western Digital shipped 248 exabytes, up 22% from a year earlier, and its average price per terabyte rose 28%, up from growth in the high teens in the June quarter.
- Margins kept widening. The GAAP gross margin was 57.8% and the GAAP operating margin 46.7%, up from 43.5% and 28.1%. Non-GAAP earnings per share rose 161% to $4.64.
- The next quarter should be bigger again. Western Digital guided Q2 fiscal 2027 revenue of $5.1bn, plus or minus $0.1bn, a non-GAAP gross margin of 60% to 61% and non-GAAP earnings per share of $5.80, plus or minus $0.20.
- More cash back. Free cash flow was $1,377m. Western Digital bought back $1,001m of shares, ended the quarter with net cash of about $0.5bn and raised its quarterly dividend 17% to $0.175.
- Our value: $247.70 a share, against a $338.59 close on 2 November 2026. Across costs of capital from 11.2% to 13.2% and terminal growth from 1.5% to 3.5% the model gives $231.21 to $269.46. Analysts' average target is $613.38.
- What to watch. Whether hard drive prices keep rising, the HAMR drive qualifications with two hyperscale customers due in the first quarter of calendar 2027, input costs for memory chips, and capital spending.

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