Western Digital jumps as Q3 beat, raised dividend and bullish Q4 outlook fuel rally
Western Digital shares are higher as investors continue to digest a strong fiscal Q3 2026 report and upbeat Q4 outlook released April 30, 2026. The company posted $3.34B revenue (+45% YoY), lifted its quarterly dividend 20% to $0.15, and guided for Q4 revenue growth of 36%–44% YoY.
1. What’s moving the stock
Western Digital (WDC) is rising today as the market continues to reprice the stock following the company’s fiscal third-quarter 2026 earnings and guidance released after the close on April 30, 2026. The report showed a sharp year-over-year acceleration in revenue and profitability alongside a stronger-than-expected outlook, reinforcing the view that AI-driven data center storage demand is translating into pricing and margin leverage for HDD suppliers. (westerndigital.com)
2. The key numbers investors are reacting to
For fiscal Q3 2026 (ended April 3, 2026), WD reported revenue of $3.34 billion, up 45% year over year, with GAAP gross margin of 50.2% and non-GAAP gross margin of 50.5%. WD reported GAAP diluted EPS of $8.20 and non-GAAP diluted EPS of $2.72, and generated $1.12 billion of cash flow from operations and $978 million of free cash flow. (westerndigital.com)
3. Guidance, capital returns, and why it matters now
WD’s outlook also contributed to the bullish tone: the company said Q4 fiscal 2026 revenue is expected to be up 36% to 44% year over year, and it expects Q4 non-GAAP gross margin of 51% to 52%. In the same update, WD announced a 20% increase in its quarterly cash dividend to $0.15 per share, signaling confidence in cash generation and the durability of demand. (westerndigital.com)