Western Digital sees 69% revenue jump in next quarter on AI storage demand
Western Digital reported a 55% revenue increase to $4.38 billion in its first quarter of fiscal 2027, ending October 2. Non-GAAP gross margins rose to 58.1% from 43.9% year-over-year, and earnings per share surged 161% to $4.64. The company expects revenue to grow 69% in the current quarter, with margins reaching 60–61% and adjusted EPS rising to $5.80 from $2.13 in the same period last year.
Key points
- Western Digital’s Q1 fiscal 2027 revenue rose 55% to $4.38 billion, with non-GAAP EPS up 161% to $4.64
- Company expects 69% revenue growth and 60–61% margins in next quarter, with EPS rising to $5.80
- 88% of revenue comes from cloud storage, driven by AI-driven demand and a 25% CAGR forecast through 2030
Western Digital attributes its growth to AI-driven demand for data storage, with 88% of its revenue coming from cloud storage. The company forecasts the AI and cloud storage market will expand at a 25% compound annual growth rate through 2030. Despite a 49% drop from its 52-week high in June, the company sees this as an opportunity for further gains in 2027.
Not Nvidia. Not Micron. This Underappreciated AI Stock Could Be 2027's Biggest Winner.
finance.yahoo.com · 28 October 2026
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