# Western Digital sees 69% revenue jump in next quarter on AI storage demand

Digest AI · Business & Funding · published 2026-10-28T06:35:00Z

Canonical: https://digestai.news/story/western-digital-sees-69-revenue-jump-in-next-quarter-on-ai-storage-dem

## Summary

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.

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.

## 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

## Why it matters

Western Digital’s strong storage growth reflects AI’s expanding data needs, benefiting cloud providers and enterprises. Its margins and revenue forecasts signal potential outperformance in AI infrastructure beyond chipmakers like Nvidia.

## Sources

1. [Not Nvidia. Not Micron. This Underappreciated AI Stock Could Be 2027's Biggest Winner.](https://finance.yahoo.com/markets/stocks/articles/not-nvidia-not-micron-underappreciated-133500492.html) (finance.yahoo.com, 2026-10-28)

## Cite

Digest AI, "Western Digital sees 69% revenue jump in next quarter on AI storage demand", 28 October 2026, https://digestai.news/story/western-digital-sees-69-revenue-jump-in-next-quarter-on-ai-storage-dem

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