Story perspectives

Western Digital beats estimates, raises dividend, buys back $1B

By Drooid · Oct 23, 2026, 6:12 PM UTC · How we work

Summary

Western Digital Beats Estimates

Western Digital posted fiscal Q1 2027 adjusted EPS of $4.64, beating estimates by 13.73%.
Revenue rose to $4.38 billion, up 55.5% year-over-year and 17% quarter-over-quarter.
The company raised its quarterly dividend 17% and repurchased $1 billion of shares.
Cantor Fitzgerald cut its price target to $625 from $900 while maintaining an Overweight rating.
Cantor Fitzgerald raised its 2027 EPS estimate to $30.00 and its 2028 estimate to $41.50.

Summary

Western Digital Shares Plummet

Western Digital’s shares have fallen over 52% since June, dropping from $800 to $378.
Implied volatility surged to 140%, more than double its historic 63% level.
Put/call ratio sits at 0.67, indicating more call options than puts.
Technical charts show a descending channel with price below the 200-day EMA, suggesting bearish momentum.
Analysts cite Toshiba’s expanded advanced HDD supply and inventory buildup as pressures on future margins.

Summary

Western Digital Begins Production

Western Digital began volume production of its ePMR platform, delivering drives up to 40 TB.
It will qualify two hyperscale customers in calendar-2027 Q1 and start volume shipments thereafter.
Second-generation HAMR drives with a five-TB-per-platter 11-disc design are slated for qualification in calendar-2027 H2.
Free cash flow hit $1.4 billion, enabling $1 billion in share repurchases and dividend increases.

History

Historical Context

Apple’s 2012 $10 billion buyback that sent its shares 30 % higher revived confidence in capital returns, a pattern Western Digital now follows with a $1 billion program. The practice echoes the surge in U.S. share repurchases that began in the late-1990s and was regulated by SEC Rule 10b-18 in the 1970s; today open-market buybacks account for roughly 95 % of all programs.

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Western Digital Beats Estimates

Western Digital posted fiscal Q1 2027 adjusted EPS of $4.64, beating estimates by 13.73%.
Revenue rose to $4.38 billion, up 55.5% year-over-year and 17% quarter-over-quarter.
The company raised its quarterly dividend 17% and repurchased $1 billion of shares.
Cantor Fitzgerald cut its price target to $625 from $900 while maintaining an Overweight rating.
Cantor Fitzgerald raised its 2027 EPS estimate to $30.00 and its 2028 estimate to $41.50.

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