Western Digital's Q1 fiscal quarter results and Q2 guidance both exceeded expectations, but failed to prevent a sharp plunge in its stock price.

Western Digital’s first fiscal quarter results exceeded all market expectations, driven by robust data storage demand and improved product pricing, prompting the company to raise its quarterly dividend. The firm reported fiscal 2027 first-quarter revenue of $4.381 billion, up 55% year-over-year, beating analysts’ prior consensus estimate of $4.14 billion. Non-GAAP earnings per share (EPS) came in at $4.64, surging 161% YoY, versus the FactSet-surveyed analysts’ forecast of $4.11 per share. For the second fiscal quarter, Western Digital projects adjusted EPS of $5.60 to $6.00 and revenue ranging from $5 billion to $5.2 billion. By contrast, analysts had expected adjusted EPS of $4.84 and revenue of $4.57 billion for the quarter, meaning the company’s midpoint guidance significantly outpaces market consensus. Despite Western Digital’s strong performance, storage and AI-related stocks overall remained under pressure. Market concerns over whether large-scale capital expenditures will generate effective returns in the short term have not dissipated, a sentiment that continues to weigh on sector valuations. Following the earnings release, the stock rose briefly before falling sharply; as of press time, it was down 6.3% in after-hours trading.