Western Digital shares jumped 7% today as analysts raised price targets, citing robust demand for enterprise storage driven by AI data center investments. The company reported fiscal Q3 2026 revenue of $3.34 billion（約5300億円）, up 45% year-over-year, with expanding margins and a strengthened balance sheet positioning it to benefit from continued AI infrastructure spending.
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Western Digital (WDC) shares rose 7.0% today as Wall Street lifted price targets on the stock, citing strong enterprise storage demand tied to AI infrastructure spending. The company's fiscal third-quarter 2026 revenue reached about $3.34 billion（約5300億円）, up 45% year-over-year, with non-GAAP gross margin expanding to 50.5%.
Why it matters
Analysts see continued favorable pricing and demand for enterprise storage as companies invest in AI data centers. Western Digital's rising margins, upbeat guidance, and improved balance sheet following a recent business separation suggest the company is well-positioned to capitalize on this trend.
What to watch
For fiscal fourth quarter 2026, Western Digital guided to roughly $3.65 billion（約5800億円） in revenue at the midpoint, with non-GAAP gross margin of 51% to 52% and non-GAAP EPS of about $3.25. Median analyst price target stands at $575.0, with some targets as high as $900.0.
Western Digital's stock rally reflects renewed confidence in the storage and memory sector amid sustained AI infrastructure investment. The company's fiscal Q3 2026 results—with revenue up 45% year-over-year and gross margin expansion to 50.5%—demonstrate strong operational execution. This performance is particularly notable given the company's recent business separation, which has allowed it to maintain a cleaner balance sheet while deploying free cash flow toward shareholder returns.
Analysts' bullish stance centers on two reinforcing trends: enterprise storage demand remains robust as data centers scale to support AI workloads, and pricing power in the sector has held firm. Wall Street's recent lift in price targets signals confidence that this favorable environment will persist into the near term. The company's fiscal Q4 2026 guidance—projecting further revenue growth to roughly $3.65 billion（約5800億円） and continued margin expansion to 51–52%—supports this view. Insider trading activity shows company executives have been selling shares consistently over the past six months, though institutional investors have made significant net additions to their positions, with some funds dramatically increasing holdings in Q1 2026.
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