Analysts expect Western Digital to report first-quarter fiscal 2027 revenue of $4.14 billion and consensus EPS of $4.08, with the current stock price of $364.38 trading significantly below the $663.80 average analyst price target.
Investors are primarily focused on the expansion of non-GAAP gross margins, which are guided to reach a record 55-56% as the company transitions into a pure-play hard disk drive (HDD) business following its flash separation.
The company is currently benefiting from an AI-driven storage upcycle, with nearline HDD demand from cloud hyperscalers providing strong multi-year visibility through 2029. Despite recent sector volatility, management continues to leverage its technology lead in high-capacity 40TB+ drives to capture higher pricing per terabyte.