Analysts Lift Estimates 16% as Western Digital Sales Surge on AI Demand
Western Digital's HDD and eSSD sales are rising on surging AI and cloud data-center demand, driving a 16.2% upward revision in June 2026 earnings estimates (81.7% projected growth) despite a 6.3% revenue decline outlook. Analysts assign a Strong Buy rating, citing robust cash returns and platform traction versus peers.
1. Surge in AI-Driven Storage Demand
Western Digital is benefiting from increased demand for high-capacity HDDs and eSSDs as cloud providers and AI firms expand data-center capacity. Collaboration with hyperscale customers has accelerated delivery of reliable, high-density storage solutions optimized for AI workloads, positioning the company for revenue durability despite industry headwinds.
2. Earnings Estimate Revisions and Outlook
Consensus estimates for the June 2026 fiscal year have been raised by 16.2%, reflecting anticipated 81.7% net income growth even as revenue is projected to decline 6.3%. Upward revisions underscore confidence in Western Digital's cost structure improvements and strong adoption of enterprise SSDs.
3. Analyst Buy Ratings and Peer Comparison
Multiple Wall Street analysts have maintained Buy ratings on Western Digital, highlighting its rising cash returns and platform traction relative to peers like Teradata. The stock's focus on AI-driven storage and competitive total cost of ownership advantages support positive outlooks versus alternative data infrastructure plays.