Western Digital (WDC) Stock Tanks 15% - Even a 44% Revenue Jump Wasn’t Enough

TLDR

• WDC stock dropped around 15% pre-market despite beating earnings estimates on both EPS and revenue
• Adjusted EPS came in at $3.56 vs. the $3.31 estimate; revenue hit $3.75 billion, up 42% year-over-year
• Q1 FY2027 guidance was above consensus but showed a deceleration in sequential growth
• The stock had already rallied 201% year-to-date before the earnings print, setting a high bar
• Gross margin guidance of 55-56% fell short of rival Seagate’s 57%+ forecast

Western Digital posted a strong fiscal Q4 2026, but the market wasn’t impressed. The stock dropped roughly 15% in pre-market trading on Thursday after results that beat on both the top and bottom line.

Western Digital Corporation, WDC

The stock had already climbed 201% in 2026 heading into the print. That kind of run-up means the bar for a positive reaction is set very high.

Adjusted EPS came in at $3.56, ahead of the $3.31 analyst estimate. Revenue reached $3.75 billion, a 44% increase year-over-year and above the $3.69 billion Wall Street had expected.

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