Western Digital Corporation will report its fiscal second-quarter results after markets close on January 29, 2026. In the past week, the five analysts with the highest accuracy rankings on the Street have increased their earnings‐per‐share estimates by an average of $0.07, taking the consensus estimate to $1.05. Revenue forecasts have also climbed, with the group now projecting $3.15 billion, up from $3.07 billion ten days ago. These upward revisions reflect expectations that Western Digital’s mix shift toward higher-margin, AI-optimized storage solutions will partly offset a projected 4% year-over-year decline in total bit shipments.

On January 28, 2026, Western Digital shares rallied nearly 11%, the largest one-day gain since November 2024, after rival Seagate reported fiscal second-quarter revenue growth of 22% and a 76% rise in net income. Investors interpreted Seagate’s ability to command higher prices and expand gross margins to 42.2% as a positive signal for capacity‐constrained suppliers, including Western Digital. Trading volume on WDC surged 35% above its 30-day average, suggesting broad participation in the rally ahead of Western Digital’s own earnings disclosure.

Industry forecasts project that hyperscale data center storage demand will grow at a 25% compound annual rate through 2030, driven by generative AI workloads. Western Digital’s announced capacity commitments for fiscal 2026 already match 90% of internal targets, and management has indicated that sales discussions for 2027 deployments are underway. In a January 2026 research note, Morgan Stanley raised its price target on WDC stock by 15%—to $62—citing tight supply dynamics and expected margin expansion as Western Digital ramps next-generation helium‐sealed drives optimized for AI applications.