Western Digital Q3 Revenue Climbs 46% to $3.34B, EPS $2.72 on 50.5% Margin
WDC•Western Digital posted Q3 revenue of $3.34B, up 46% year-over-year, with EPS of $2.72 and a 50.5% gross margin. The company holds a forward PEG of 0.86x and targets a $555 fair value based on bullish FY26–28 EPS projections.
1. Q3 Financial Performance
Western Digital reported third-quarter revenue of $3.34 billion, a 46% increase year-over-year, driven by strong cloud storage demand. EPS reached $2.72, supported by a 50.5% gross margin, marking a significant improvement over prior periods.
2. AI Infrastructure Demand
Surging AI workloads are creating memory shortages, benefiting Western Digital’s NAND and HDD businesses. The ramp-up of data centers and associated cooling and power infrastructure underscores long-term demand for the company’s storage solutions.
3. Valuation and Growth Outlook
Shares trade at a forward PEG ratio of 0.86x, reflecting attractive valuation against projected EPS growth through FY28. Management’s $555 fair value target is based on normalized FY28 earnings and assumes continued margin expansion and AI market penetration.
