Western Digital (WDC.O) beat Wall Street's estimates on fiscal Q4 2026 revenue, net income, and adjusted EPS, then watched its shares slide 10.67% in after-hours trading, according to BIT (bit.com) market data. Revenue reached $3.75 billion for the quarter, against a $3.692 billion market estimate and $2.605 billion a year earlier. Net income jumped to $3.195 billion from $282 million in the prior-year period, while adjusted earnings per share of $3.56 topped the $3.31 analyst consensus. Fiscal Q1 2027 guidance also cleared expectations: revenue of $4.0 billion to $4.2 billion, with a midpoint of $4.1 billion versus the $4.04 billion consensus; EPS of $3.85 to $4.15, versus the $3.77 forecast; and non-GAAP gross margin of 55% to 56%. Despite the beat across every metric, the stock retreated, last seen at $463.78, as investor focus shifts from earnings recovery to whether growth can keep exceeding expectations. After a long run-up, guidance that merely clears rather than decisively beats the bar invites profit-taking.
Western Digital (WDC.O) delivered a fiscal fourth-quarter report that beat expectations across the board — yet the stock tumbled in extended trading.
Revenue for the quarter came in at $3.75 billion, versus the market estimate of $3.692 billion and $2.605 billion a year earlier. Analysts had penciled in $3.68 billion for net revenue. Net income reached $3.195 billion, up from $282 million in the prior-year period. Adjusted earnings per share landed at $3.56, topping the $3.31 consensus.
Fiscal Q1 2027 guidance clears analyst bar
For the first quarter of fiscal 2027, Western Digital guided revenue in a range of $4.0 billion to $4.2 billion, with a midpoint of $4.1 billion that tops the $4.04 billion consensus. EPS is forecast between $3.85 and $4.15, ahead of the $3.77 estimate. Non-GAAP gross margin is expected at 55% to 56%.
After-hours slide: focus turns to growth durability
The pullback despite the beat points to a shift in investor focus, from earnings recovery to whether growth can keep exceeding expectations. After several consecutive quarters of strong results and a hefty cumulative run-up in the shares, any outlook that merely meets — rather than decisively beats — estimates faces profit-taking pressure.
According to BIT (bit.com) market data, Western Digital fell 10.67% in after-hours trading, last changing hands at $463.78.
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