What's Next: Western Digital's Earnings Preview
Western Digital (NASDAQ:WDC) is set to give its latest quarterly earnings report on Wednesday, 2025-07-30. Here's what investors need to know before the announcement.
Analysts estimate that Western Digital will report an earnings per share (EPS) of $1.43.
Western Digital bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
Historical Earnings Performance
During the last quarter, the company reported an EPS beat by $0.23, leading to a 0.21% increase in the share price on the subsequent day.
Here's a look at Western Digital's past performance and the resulting price change:
| Quarter | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.13 | 1.82 | 1.71 | 1.15 |
| EPS Actual | 1.36 | 1.77 | 1.78 | 1.44 |
| Price Change % | 0.0% | 5.0% | 5.0% | -10.0% |
Tracking Western Digital's Stock Performance
Shares of Western Digital were trading at $68.985 as of July 28. Over the last 52-week period, shares are up 38.62%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analysts' Perspectives on Western Digital
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Western Digital.
Analysts have given Western Digital a total of 18 ratings, with the consensus rating being Outperform. The average one-year price target is $70.06, indicating a potential 1.56% upside.
Comparing Ratings with Competitors
In this comparison, we explore the analyst ratings and average 1-year price targets of Hewlett Packard, NetApp and Pure Storage, three prominent industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Hewlett Packard, with an average 1-year price target of $23.31, suggesting a potential 66.21% downside.
- Analysts currently favor an Neutral trajectory for NetApp, with an average 1-year price target of $112.6, suggesting a potential 63.22% upside.
- Analysts currently favor an Buy trajectory for Pure Storage, with an average 1-year price target of $67.5, suggesting a potential 2.15% downside.
Comprehensive Peer Analysis Summary
Within the peer analysis summary, vital metrics for Hewlett Packard, NetApp and Pure Storage are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Western Digital | Outperform | 30.94% | $912M | 5.86% |
| Hewlett Packard | Neutral | 5.87% | $2.17B | -4.40% |
| NetApp | Neutral | 3.84% | $1.19B | 33.42% |
| Pure Storage | Buy | 12.26% | $536.15M | -1.10% |
Key Takeaway:
Western Digital ranks first in revenue growth among its peers. It ranks second in gross profit. It ranks third in return on equity.
Delving into Western Digital's Background
Western Digital is a leading, vertically integrated supplier of hard disk drives. The HDD market is a practical duopoly with, Western Digital and Seagate being the two largest players. Western Digital designs and manufacturers its HDDs, with much of the manufacturing and workforce located in Asia. The primary consumers of HDDs are data centers.
Financial Milestones: Western Digital's Journey
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Revenue Growth: Western Digital's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2025, the company achieved a revenue growth rate of approximately 30.94%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 22.1%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): Western Digital's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 5.86%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Western Digital's ROA excels beyond industry benchmarks, reaching 2.42%. This signifies efficient management of assets and strong financial health.
Debt Management: Western Digital's debt-to-equity ratio stands notably higher than the industry average, reaching 1.42. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
To track all earnings releases for Western Digital visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
