Western Digital Corporation (WDC) Stock Falls on Q2 2026 Earnings

Western Digital Corporation (WDC) reported second-quarter 2026 revenue of $3.02 billion, down 29.6% year-over-year and slightly above the consensus revenue estimate of $2.95 billion.

Key income statement highlights:

Gross profit of $1.38 billion, down 9.0% year-over-year; gross margin roughly 45.8%.

Operating profit of $908 million, up 6.6% year-over-year.

Net income attributable to common shareholders of $1.84 billion, up 210.1% year-over-year.

Diluted earnings per share of $4.73, versus an estimate of $1.94.

Cash flow and balance sheet:

Cash from operating activities of $745 million, up 84.9% year-over-year.

Capital expenditures (purchases of property, plant and equipment) of $92 million, down 20.7% year-over-year.

Cash and cash equivalents of $1.98 billion, down 13.8% year-over-year.

Total liabilities of $8.27 billion, down 36.9% year-over-year.

Cost of goods sold was $1.64 billion, down 40.9% year-over-year.

Shares were down 2.71% since market close.

Note: This financials data is sourced from a third-party provider and has not been independently verified by Quiver.

Western Digital Corporation Insider Trading Activity

Western Digital Corporation insiders have traded $WDC stock on the open market 42 times in the past 6 months. Of those trades, 0 have been purchases and 42 have been sales.

Here’s a breakdown of recent trading of $WDC stock by insiders over the last 6 months:

VIDYADHARA K GUBBI (Chief of Global Operations) has made 0 purchases and 6 sales selling 43,707 shares for an estimated $5,469,743.
IRVING TAN (Chief Executive Officer) has made 0 purchases and 7 sales selling 28,621 shares for an estimated $3,668,117.
MARTIN I COLE has made 0 purchases and 19 sales selling 16,000 shares for an estimated $2,588,908.
CYNTHIA L TREGILLIS (Chief Legal Officer & Corp Sec) has made 0 purchases and 3 sales selling 17,315 shares for an estimated $1,604,044.
KIMBERLY ALEXY has made 0 purchases and 2 sales selling 3,768 shares for an estimated $592,436.
GENE M. ZAMISKA (SVP & Princ. Acctg Officer) has made 0 purchases and 4 sales selling 6,155 shares for an estimated $468,791.
ROXANNE OULMAN sold 1,800 shares for an estimated $277,956

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

Western Digital Corporation Hedge Fund Activity

We have seen 645 institutional investors add shares of Western Digital Corporation stock to their portfolio, and 345 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

FIL LTD removed 9,574,144 shares (-91.8%) from their portfolio in Q3 2025, for an estimated $1,149,471,728
FMR LLC removed 8,504,412 shares (-26.4%) from their portfolio in Q3 2025, for an estimated $1,021,039,704
WCM INVESTMENT MANAGEMENT, LLC added 6,778,460 shares (+inf%) to their portfolio in Q3 2025, for an estimated $813,821,907
D. E. SHAW & CO., INC. added 6,718,155 shares (+231.1%) to their portfolio in Q3 2025, for an estimated $806,581,689
SLATE PATH CAPITAL LP removed 4,621,854 shares (-76.5%) from their portfolio in Q3 2025, for an estimated $554,899,791
DNB ASSET MANAGEMENT AS removed 3,923,603 shares (-81.0%) from their portfolio in Q3 2025, for an estimated $471,067,776
IMPACTIVE CAPITAL LP removed 3,571,435 shares (-100.0%) from their portfolio in Q3 2025, for an estimated $428,786,486

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Western Digital Corporation Analyst Ratings

Wall Street analysts have issued reports on $WDC in the last several months. We have seen 15 firms issue buy ratings on the stock, and 0 firms issue sell ratings.

Here are some recent analyst ratings:

Morgan Stanley issued a "Overweight" rating on 01/22/2026
Citigroup issued a "Buy" rating on 01/20/2026
B of A Securities issued a "Buy" rating on 01/20/2026
Rosenblatt issued a "Buy" rating on 01/20/2026
China Renaissance issued a "Buy" rating on 12/05/2025
Loop Capital issued a "Buy" rating on 11/10/2025
Wells Fargo issued a "Overweight" rating on 10/31/2025

To track analyst ratings and price targets for Western Digital Corporation, check out Quiver Quantitative's $WDC forecast page.

Western Digital Corporation Price Targets

Multiple analysts have issued price targets for $WDC recently. We have seen 19 analysts offer price targets for $WDC in the last 6 months, with a median target of $200.0.

Here are some recent targets:

Vijay Rakesh from Mizuho set a target price of $265.0 on 01/27/2026
Erik Woodring from Morgan Stanley set a target price of $260.0 on 01/22/2026
Wamsi Mohan from B of A Securities set a target price of $257.0 on 01/20/2026
Kevin Cassidy from Rosenblatt set a target price of $270.0 on 01/20/2026
Asiya Merchant from Citigroup set a target price of $280.0 on 01/20/2026
Timothy Arcuri from UBS set a target price of $230.0 on 01/20/2026
Mehdi Hosseini from Susquehanna set a target price of $205.0 on 01/16/2026