WESTERN DIGITAL CORP(WDC)Stock Analysis
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Rank #98 of 2,879 stocksTOP 5%
Rankings refresh quarterly once 80% of peers have filed (~45 days after quarter-end). Next update: ~Aug 14, 2026.
Revenue Growth
Profitability
Balance Sheet
Earnings Quality
Free Cash Flow
Institutional Flow
Revenue Scale
Dilution Risk
WDC Stock Analysis & AI Quality Score
AI stock analysis and institutional research for WESTERN DIGITAL CORP (WDC), a Technology sector company. 13F Pro's AI-powered ranking engine scores WDC at 76.8/100 on a 32-signal composite quality model, placing it at rank #98 of 2,879 stocks — the top 5% of the AI-ranked universe. WDC scores in the top quartile across balance sheet strength (99.5), profitability (95.8), revenue scale (87.8). Areas of concern include earnings quality (30.0), which score below median versus the broader universe. Shareholder dilution risk is elevated at 35.2/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q3 2026), WESTERN DIGITAL CORP reports quarterly revenue of $3.3B, net income of $3.2B, an operating margin of 35.7%. Top institutional holders of WDC by reported 13-F value include BlackRock,, FMR, VANGUARD CAPITAL MANAGEMENT, based on the most recent SEC filings. WDC trades on the Nasdaq exchange and files with the SEC under CIK 106040. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate WDC daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for WESTERN DIGITAL CORP directly from SEC EDGAR. WESTERN DIGITAL CORP's 13F Pro composite quality score has ranged between 8 and 83 since 2021, currently 76.8 — an improving long-term trajectory across 56 quarterly and live scoring snapshots.
What's Driving WDC's Business? Latest 10-Q Breakdown
✓ 31/31 datapoints verifiedAI-extracted from WESTERN DIGITAL CORP's 10-Q filed 2026-05-01 — Q3 FY2026 (quarter ended April 3, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Western Digital posted Q3 revenue of $3.3B (+45% YoY) driven by 34% growth in exabytes sold and strong Cloud demand; net income surged to $3.2B from $772M YoY largely due to $2.7B gain on retained Sandisk shares.
Biggest Revenue Drivers
Total revenue: $3,337M+45% YoY
36% increase in exabytes sold and 9% increase in average selling price per exabyte, driven by strong demand for high-capacity enterprise products and improved pricing environment.
6% increase in exabytes sold and 17% increase in average selling price per exabyte.
19% increase in exabytes sold and 10% increase in average selling price per exabyte.
Largest Expense Items
Increase driven by higher volume of shipments, partially offset by lower cost structure on newer generation products.
$25M incremental product development costs and $20M higher compensation-related costs aligned with improved financial performance.
Primarily attributable to higher compensation-related expense as a result of improved financial performance.
Margins: Gross margin expanded 10 percentage points YoY to 50.2%, driven by lower cost structure on newer generation products and improved pricing environment. Operating income margin improved 2.6 points to 35.7% despite higher operating expenses.
Watch Items from the Filing
- Top 10 customers represent 71% of Q3 revenue and 74% of 9-month revenue; largest three customers represent 17%, 15%, and 11% of quarterly revenue—significant customer concentration risk.
- Company holds $1.7M shares of Sandisk common stock with fair value of $1.187B as of April 3, 2026; plans to monetize remaining shares by end of 2026 in debt-for-equity exchanges, exposing capital structure to Sandisk stock price volatility.
- $1.6B of 3.00% convertible notes due November 2028 are currently in conversion period (through June 30, 2026); classified as current liability with potential dilution if converted to shares rather than cash.
- Two customers account for 28% and 12% of accounts receivable as of April 3, 2026; receivables increased $408M YoY driven by business volume growth, heightening credit concentration risk.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Revenue
Q3 2026
$3.3B
Net Income
Q3 2026
$3.2B
Free Cash Flow
Q3 2026
$978.0M
Operating Margin
Q3 2026
35.7%
Revenue & Net Income
Earnings Per Share
Key Financials Over Time
Export Financial Table · Pro+Revenue
+50.7% YoYNet Income
+336.7% YoYOperating Income
+679.2% YoYEPS (Diluted)
+296.2% YoYTotal Assets
-42.1% YoYTotal Debt
-24.5% YoYOp. Cash Flow
+675.2% YoY| Metric | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|
| Revenue | $9.52B +50.7% | $6.32B +1.0% | $6.25B -66.7% | $18.79B +11.1% | $16.92B +1.1% | $16.74B |
| Net Income | $1.89B +336.7% | $-798.0M +52.6% | $-1.68B -208.9% | $1.55B +88.3% | $821.0M +428.4% | $-250.0M |
| Operating Income | $2.33B +679.2% | $-403.0M +26.5% | $-548.0M -122.9% | $2.39B +96.0% | $1.22B +264.2% | $335.0M |
| EPS (Diluted) | $5.12 +296.2% | $-2.61 +51.4% | $-5.37 -209.8% | $4.89 +83.8% | $2.66 +416.7% | $-0.84 |
| Total Assets | $14.00B -42.1% | $24.19B -1.5% | $24.55B -6.5% | $26.26B +0.5% | $26.13B +1.8% | $25.66B |
| Total Debt | $6.94B -24.5% | $9.18B +10.9% | $8.28B +18.0% | $7.02B -21.8% | $8.98B -9.0% | $9.86B |
| Operating Cash Flow | $1.69B +675.2% | $-294.0M +27.9% | $-408.0M -121.7% | $1.88B -0.9% | $1.90B +130.3% | $824.0M |
AI Insight: WDC Financial Trends
Western Digital delivered explosive profitability improvement with net income surging from $282M in Q2 2025 to $3,205M in Q2 2026.
• Net income skyrocketed from $282M in Q2 2025 to $3,205M in Q2 2026, an 11x increase.
• Operating income expanded from $680M in Q2 2025 to $1,190M in Q2 2026.
• Total debt declined sharply from $9,759M in Q1 2025 to $3,162M in Q2 2026.
• Operating cash flow strengthened from $746M in Q2 2025 to $1,123M in Q2 2026.
⚠ Revenue remains below Q4 2024 levels at $3,337M versus $4,285M despite strong profitability gains.
⚠ Equity volatility with sharp decline from $12,117M in Q4 2024 to $5,177M in Q1 2025.
AI Insight: WDC Ratio Trends
Western Digital delivered explosive profitability recovery with operating margin expanding from 8.2% in Q3 2024 to 35.7% in Q2 2026.
• Operating margin surged from 8.2% in Q3 2024 to 35.7% in Q2 2026, reflecting strong operational leverage.
• Net profit margin skyrocketed from 12.0% in Q3 2024 to 96.0% in Q2 2026.
• ROE accelerated dramatically from 16.9% in Q3 2024 to 132.4% in Q2 2026.
• Debt-to-equity ratio improved from 0.85 in Q2 2024 to 0.33 in Q2 2026.
⚠ ROIC declined from 25.7% in Q4 2024 to 1.6% in Q1 2025 before recovering.
⚠ Debt-to-equity spiked to 1.89 in Q1 2025 before normalizing to current 0.33 level.
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Top Institutional Holders of WDC
BlackRock, Inc.
$9.7B35,769,222 shFMR LLC
$8.6B31,623,418 shVANGUARD CAPITAL MANAGEMENT LLC
$6.0B22,034,861 shVANGUARD PORTFOLIO MANAGEMENT LLC
$4.6B17,172,653 shSTATE STREET CORP
$4.2B15,465,766 shCapital World Investors
$3.2B11,880,038 shGEODE CAPITAL MANAGEMENT, LLC
$2.6B9,477,201 shBANK OF AMERICA CORP /DE/
$2.3B8,489,612 shMORGAN STANLEY
$2.1B7,939,106 shJANE STREET GROUP, LLC
$1.8B6,809,400 sh
| Fund | Value | Shares |
|---|---|---|
| BlackRock, Inc. | $9.7B | 35,769,222 |
| FMR LLC | $8.6B | 31,623,418 |
| VANGUARD CAPITAL MANAGEMENT LLC | $6.0B | 22,034,861 |
| VANGUARD PORTFOLIO MANAGEMENT LLC | $4.6B | 17,172,653 |
| STATE STREET CORP | $4.2B | 15,465,766 |
| Capital World Investors | $3.2B | 11,880,038 |
| GEODE CAPITAL MANAGEMENT, LLC | $2.6B | 9,477,201 |
| BANK OF AMERICA CORP /DE/ | $2.3B | 8,489,612 |
| MORGAN STANLEY | $2.1B | 7,939,106 |
| JANE STREET GROUP, LLC | $1.8B | 6,809,400 |
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Is WDC a good stock to buy?
13F Pro's AI-powered analysis of WESTERN DIGITAL CORP (WDC) draws on SEC EDGAR-sourced fundamentals, institutional 13F holdings, and insider Form 4 transactions in the Technology sector (listed on Nasdaq). The 32-signal AI Quality Score, current rank, and full bull/bear verdict for WDC are available on the WDC stock profile dashboard — with the same data, AI insights, ratios, and institutional activity refreshed after every 10-K, 10-Q, 13F, and Form 4 filing.
Which hedge funds own WDC?
Institutional investors are required to disclose their holdings quarterly via SEC Form 13F. 13F Pro aggregates these filings to show which hedge funds, mutual funds, and asset managers are buying or selling WDC. Combined with insider transaction data from Form 4 filings and AI-powered analysis from 10 specialized research agents, 13F Pro provides a comprehensive view of WESTERN DIGITAL CORP's investment landscape.