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Western Digital’s Beat and Outlook Lift HDD Makers as AI Storage Orders Stretch Into 2026

Investors are pricing in sustained data‑center demand following multi‑year purchase commitments from top cloud customers.

Overview

  • Western Digital posted September‑quarter adjusted EPS of $1.78 on $2.82 billion in revenue, up 137% and 27% year over year, and guided the December quarter above consensus.
  • The company lifted its quarterly dividend by 25% to $0.125 and highlighted tight supply and a shift to higher‑capacity hard drives for cloud data centers.
  • J.P. Morgan said Western Digital has purchase orders locked through calendar 2026 with five of its largest customers, signaling efforts to secure storage capacity.
  • Shares of Western Digital and Seagate trade near record highs after year‑to‑date gains above 200%, as Wall Street issued a flurry of price‑target hikes on Western Digital to roughly $164.
  • Seagate earlier projected second‑quarter revenue and profit ahead of expectations, and tech giants’ rising capex plus Goldman’s $3–$4 trillion AI‑infrastructure forecast underpin long‑term demand.