Western Digital Q4 Revenue of $3.75B Beats Expectations, Stock Drops 11% After Hours
0xBroomberg
Western Digital posted Q4 revenue of $3.75 billion and EPS of $3.56, both above consensus — yet the stock fell roughly 11% after hours, as a 176% year-to-date rally had already priced in a beat far larger than what was delivered.
How good was the quarter, really?
Q4 Non-GAAP EPS came in at $3.56, beating consensus by $0.26.
Revenue hit $3.75 billion, up 43.7% year-over-year and roughly $50 million above estimates.
Both the results and prior guidance cleared the Wall Street consensus bar — on paper, a clean all-around beat.
If it beat expectations, why did the stock drop?
Shares fell about 11% in after-hours trading. The driver was an expectations gap, not a fundamental deterioration.
This means → with a 176% gain already banked year-to-date, the market had priced in not just a beat but a blowout; a modest beat triggered a "sell the news" reaction.
In plain terms = the company scored 90, but the market wanted 95 — so the stock got punished.
How does management view the full year?
The CEO called fiscal 2026 an "outstanding year" in the earnings release.
He pointed to three themes: expanding demand, deepening customer engagement, and execution discipline across all end markets.
This reflects management confidence in the storage demand cycle, though the statement stayed qualitative and offered no specific forward guidance for the next fiscal year.
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