Western Digital Earnings Test Whether AI Storage Demand Can Halt Stock Slide
Western Digital is scheduled to report fiscal first-quarter 2027 results after the close, with analysts expecting about $4.14 billion in revenue and EPS of $4.08. Shares have dropped nearly 22% in the past month even after five straight earnings beats, though they remain up sharply over the past year. Investors will focus on gross margin guidance and demand for high-capacity drives, including a 44TB HAMR product planned for the first half of 2027.
Western Digital is due to post fiscal first-quarter 2027 results after the market closes. Consensus calls for about $4.14 billion in sales and normalized EPS of $4.08, while management's revenue midpoint was $4.10 billion. The prior quarter showed $3.747 billion in revenue, $3.56 non-GAAP EPS, 54.4% non-GAAP gross margin, and $1.281 billion free cash flow.
The stock has lost almost 22% in a month but is still up sharply over a year, with a market value near $131 billion. Investors are watching gross margin guidance of 55% to 56%, high-capacity drive demand, and timing of a 44TB HAMR product expected in the first half of 2027. Five straight EPS beats have not prevented the recent decline.
Western Digital's results could influence how investors value AI-related hardware and may affect financing conditions for storage suppliers. Employees and local communities tied to drive manufacturing could feel shifts in production plans, while cloud providers and enterprises may see changes in storage pricing and availability. Consumers could eventually encounter those effects through data services, but the earnings report itself is likely to move sentiment more than near-term everyday costs.