Western Digital Completes $3.1B Stake Sale, Guides Q3 FY26 Revenue 40% Higher
Western Digital completed a $3.1 billion stake sale, sold out 2026 HDD capacity with supply deals through 2028, and guided Q3 FY26 revenue to a $3.2 billion midpoint for roughly 40% year-over-year growth. Its $7.111 billion shareholders’ equity and 25.6x forward P/E underpin a highly resilient balance sheet.
1. Stake Sale and Pure-Play HDD Focus
Western Digital completed a $3.1 billion secondary offering in February 2026, following last year’s SanDisk spin-off, to streamline operations into a pure-play hard disk drive provider and strengthen liquidity.
2. Sold-Out 2026 Capacity and Strong Growth Outlook
The company’s entire HDD production capacity for fiscal 2026 is fully contracted with customers through 2028, and management guided Q3 FY26 revenue at a $3.2 billion midpoint, signaling roughly 40% year-over-year growth after two quarters of 25%–27% gains.
3. Fortress-Like Balance Sheet
Western Digital reported $7.111 billion in shareholders’ equity and trades at about 25.6x forward P/E, providing significant financial cushion to support operations and investment through industry cycles.