
• Reported GAAP EPS of $5.27 up 299.24% YoY • Reported revenue of $3.02B down -29.59% YoY • Western Digital expects Q3FY26 revenues of $3.2 billion, up approximately 40% year over year at the mid-point, with a non-GAAP gross margin of 47.5% and non-GAAP EPS of $2.30.
Bullish
Western Digital achieved strong Q2FY26 revenue growth of 25% year over year, expanded non-GAAP gross margin to 46.1%, and generated $653 million in free cash flow, returning over 100% to shareholders.
Bearish
Western Digital faces risks from demand volatility, dependence on a limited number of qualified suppliers, and the impact of competitive products and pricing in the market.