Western Digital fell more than 10% in after-hours trading, as its earnings guidance disappointed the market.

Western Digital (WDC.O) posted Q4 fiscal 2026 revenue of $3.75 billion, beating the market consensus of $3.692 billion and surging from $2.605 billion in the year-ago quarter. Net profit for the period stood at $3.195 billion, up from $282 million in the same period last year. The company’s Q4 net revenue came in at $3.75 billion, exceeding analysts’ forecast of $3.68 billion, while adjusted earnings per share (EPS) hit $3.56, also topping the $3.31 consensus estimate. For fiscal Q1 2027, Western Digital projects revenue between $4 billion and $4.2 billion (midpoint at $4.1 billion), above analysts’ consensus of $4.04 billion. It expects EPS of $3.85 to $4.15, higher than the $3.77 consensus, and non-GAAP gross margin of 55% to 56%. Despite the results broadly outperforming expectations, Western Digital’s stock saw a sharp pullback, as investors shifted their focus from “performance recovery” to “whether growth can continue to exceed expectations”. Against the backdrop of the company delivering strong results for multiple consecutive quarters and its stock having rallied significantly, any guidance that does not meaningfully top expectations faces profit-taking pressure. According to BIT (bit.com) market data, Western Digital’s shares fell 10.67% in after-hours trading, currently priced at $463.78.