Valuation Update With 7 Day Price Move • 14h
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to US$525, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 15x in the Tech industry in the US. Total returns to shareholders of 1,645% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$983 per share. WDC
Live News • May 22
Western Digital Beats Earnings Expectations Shares See Volatility on AI Storage Trends and Insider Selling Western Digital reported fiscal Q3 2026 revenue of US$3.34b and adjusted EPS of US$2.72, beating Wall Street expectations on strong demand for high-capacity HDDs tied to AI and cloud storage workloads.
The company raised its quarterly cash dividend by 20%, achieved a gross margin of 51%, and reaffirmed guidance that points to higher Q4 2026 revenue and margins than consensus expectations.
Shares declined 6% to 8% in after-hours and premarket trading following the Q3 release, as investors took profits across the broader semiconductor and storage sector and insiders sold more than US$10m of stock near all-time highs.
The key story is that Western Digital is reporting strong earnings, improving profitability and higher capital returns at the same time the stock is seeing pressure from sector-wide profit taking and concerns around AI spending and geopolitics.
For investors, the tension to watch is between the upbeat fundamentals tied to AI-driven storage demand and the higher expectations, valuations and insider selling that can add volatility even when quarterly results look strong. Announcement • May 21
Western Digital Corporation Advances Next-Generation Trusted Infrastructure With Industry’s First Post-Quantum Cryptography Hard Drives Western Digital Corporation announced a significant step in next-generation infrastructure security with the integration of post-quantum cryptography (PQC) into its newest high-capacity Ultrastar UltraSMR hard disk drives. Ultrastar HDDs currently in customer qualification introduce PQC-ready secure boot and firmware protection, establishing a new standard for device trust in the Quantum Era. These drives are currently in qualification with multiple hyperscale customers, reflecting strong early interest in quantum-resilient storage architectures. WD's launch of the first hard drives to implement NIST-approved quantum-resistant algorithms marks a definitive industry transition — from theoretical planning to deployed hardware-level defense. By hardening the root of trust, WD provides a critical safeguard against threats like harvest now, decrypt later (HNDL) and similar attacks. This helps protect the massive data lakes fueling today’s AI innovations against the cryptographic protection-breaking power of tomorrow’s quantum computers. WD is among the first to bring post-quantum cryptography into production storage infrastructure, helping lead the industry’s quantum transition with deployed, standards-aligned, infrastructure-level protection, setting a new baseline for trust in AI-era data systems. AI data systems generate and retain massive, long-lived data sets. Securing that data over decades, not just years, must be a core requirement of modern infrastructure. Long data lifecycles and extended IT service windows widen vulnerabilities. Enterprise storage infrastructure typically remains in service for five years or longer, a timeframe that may overlap with the emergence of cryptographically relevant quantum computers. As decryption capabilities advance, so do the strategies of sophisticated adversaries. HNDL is a present-day threat. Adversaries may collect encrypted or signed data with the intent to decrypt or forge security signatures once quantum capabilities mature. Organizations must begin to prepare for long-term cryptographic resilience today. Firmware-level attacks present a critical risk. Device-level trust is becoming increasingly important as security architectures evolve. A quantum-enabled adversary could potentially forge digital signatures on firmware updates, allowing malicious code to appear authentic and compromising drive security. WD's PQC implementation on the new Ultrastar DC HC6100 UltraSMR is designed to help protect device trust chains from manufacturing through field service. This implementation represents more than a feature enhancement; it reflects a broader shift toward embedding quantum-resilient security directly into the foundation of data infrastructure. The focus is on securing device-level trust, including firmware integrity and key management, rather than data-at-rest encryption. Key elements include: Algorithm selection: ML-DSA-87 (NIST FIPS 204) for high-assurance code signing, with dual-signing using RSA-3072 combining proven and emerging cryptographic standards to ensure strong, resilient security; Infrastructure readiness: PQC-capable public key infrastructure (PKI) and hardware security module (HSM) workflows deployed to support key issuance, rotation, and lifecycle management; Operational continuity: Dual-signing and rollback safeguards designed to support deployment across diverse fleets without disrupting current operations. As quantum security requirements advance, data protection at the infrastructure layer is becoming a baseline requirement for AI-driven enterprises. WD is helping define the next baseline for trust in AI infrastructure, where security is embedded at the foundation of the system, not added as an afterthought. WD expects to expand PQC capabilities across additional enterprise hard drive product lines over time.