Western Digital

WDC Q2 2026 Earnings

Reported Jan 29, 2026 at 4:11 PM ET · SEC Source

Q2 26 EPS

$2.13

BEAT +10.47%

Est. $1.93

Q2 26 Revenue

$3.02B

BEAT +2.79%

Est. $2.94B

vs S&P Since Q2 26

+55.7%

BEATING MARKET

WDC +59.8% vs S&P +4.1%

Market Reaction

Did WDC Beat Earnings? Q2 2026 Results

Western Digital delivered a convincing fiscal second quarter 2026, with the HDD-pure-play posting non-GAAP diluted EPS of $2.13 against a consensus estimate of $1.93, a beat of 10.47%, while revenue of $3.02 billion edged past the $2.94 billion estim… Read more Western Digital delivered a convincing fiscal second quarter 2026, with the HDD-pure-play posting non-GAAP diluted EPS of $2.13 against a consensus estimate of $1.93, a beat of 10.47%, while revenue of $3.02 billion edged past the $2.94 billion estimate by 2.79%. The reported revenue figure reflects a 29.6% year-over-year decline, a number that demands context: Western Digital completed the separation of its Flash business into Sandisk Corporation in February 2025, meaning comparisons now exclude an entire business segment. Investors watching closely saw the company's first full quarter as an HDD-focused entity produce non-GAAP gross margin of 46.1%, up 770 basis points year over year, driven by strong demand for high-capacity drives in AI-oriented data centers. Management paired the solid results with confident guidance, targeting roughly $3.20 billion in Q3 revenue and non-GAAP EPS of $2.30, citing continued data center adoption of next-generation high-capacity storage as the primary tailwind heading into the second half of fiscal 2026.

Key Takeaways

  • AI-driven data economy demand for high-capacity HDDs
  • Data center demand strength
  • Gross margin expansion driven by product mix and pricing
  • Disciplined execution and supply management
  • Returned over 100% of free cash flow to shareholders
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WDC YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

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WDC Revenue by Segment

Business unit performance breakdown

“Western Digital's strong performance this quarter reflects our disciplined execution to meet demand in the AI-driven data economy, and the confidence our customers place in our ability to deliver reliable, high-capacity HDDs at scale.”

— Irving Tan, Q2 2026 Earnings Press Release