Western Digital shares drop over 10% after hours despite beating earnings estimates

Huo Xing Cai Jing reports that on August 6, Western Digital (WDC.O) reported Q4 fiscal year 2026 revenue of $3.75 billion, exceeding the market expectation of $3.692 billion and up from $2.605 billion in the same period last year; net income for Q4 fiscal year 2026 reached $3.195 billion, compared to $282 million in the prior-year period. Western Digital’s fourth-quarter net revenue of $3.75 billion also surpassed analyst expectations of $3.68 billion; adjusted EPS for the quarter was $3.56, above the analyst consensus of $3.31. For Q1 fiscal year 2027, Western Digital forecasts revenue between $4.0 billion and $4.2 billion (midpoint: $4.1 billion), above the analyst consensus of $4.04 billion; EPS is expected to range from $3.85 to $4.15, higher than the analyst expectation of $3.77; non-GAAP gross margin is projected to be between 55% and 56%. Despite all financial metrics surpassing expectations, Western Digital’s stock experienced a notable decline, reflecting investor focus shifting from “earnings recovery” to “whether growth can continue to exceed expectations.” Given the company’s consecutive strong earnings reports and substantial stock price appreciation, any guidance that does not significantly surpass expectations faces profit-taking pressure. According to BIT (bit.com) market data, Western Digital’s stock fell 10.67% in after-hours trading, currently trading at $463.78.