Goldman Sachs expects Nvidia ’beat and raise,’ lifts price target to $240
Investing.com -- Western Digital Corp. (NASDAQ:WDC) shares jumped 5% in after-hours trading Thursday after the data storage company reported fiscal first-quarter earnings that exceeded analyst expectations and provided an optimistic outlook for the current quarter.
The company posted adjusted earnings per share of $1.78 for the quarter ended October 3, 2025, significantly beating the analyst estimate of $1.58. Revenue reached $2.82 billion, surpassing the consensus forecast of $2.73 billion and representing a 27% increase YoY.
Western Digital ’s strong performance was driven by robust demand in cloud data storage. The company’s shares rose 5% following the announcement, reflecting investor enthusiasm for both the quarterly results and forward guidance.
"Western Digital continues to execute well in a strong demand environment driven by growth of data storage in the cloud," said Irving Tan, CEO of Western Digital. "As AI accelerates data creation, Western Digital’s continued innovation and operational discipline position us well to capture new opportunities and drive sustained shareholder value."
For the fiscal second quarter of 2026, Western Digital expects revenue of $2.9 billion (plus or minus $100 million), above the analyst consensus of $2.826 billion. The company also forecasts adjusted EPS of $1.88 (plus or minus $0.15), exceeding the consensus estimate of $1.73.
The company’s adjusted gross margin improved to 43.9% in the first quarter, up from 37.3% in the same period last year. Operating margin on a non-GAAP basis expanded to 30.4%, a significant improvement from 18.4% a year earlier.
Western Digital also announced a 25% increase in its quarterly cash dividend to $0.125 per share, payable on December 18, 2025, to stockholders of record as of December 4, 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.