Western Digital Stock Tanks Despite Earnings Beat
Hyperdash NewsEquitiesWestern Digital shares fell despite reporting strong fiscal Q3 2026 results. The company posted adjusted earnings per share of $2.72, exceeding the $2.36 consensus estimate. Revenue reached $3.34 billion, a 45% year-over-year increase, surpassing the $3.23 billion forecast. Operating cash flow was $1.12 billion, with free cash flow at $978 million, and the quarterly dividend increased by 20% to $0.15 per share.
The market's negative reaction suggests investors are focusing on factors beyond the strong financial performance. Gross margins improved by 436 basis points quarter-on-quarter to 50.5%, driven by demand for AI-related workloads. 
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