Today’s Western Digital
Western Digital
As of 05/2/2025, 04:00 PM Eastern
- 52 weeks range
- $28.83
▼
$81.55
- Dividend yield
- 4.48%
- P/E ratio
- 10.64
- Price target
- $65.65
Western Digital Corporation NASDAQ: WDC Following the third quarter revenue announcement on April 30, it attracted investors’ attention to issuing positive advancement guidance that not only surpasses profit expectations, but also exceeds the forecasts of Western Digital’s analyst community.
The positive outlook, coupled with the start of quarterly dividends, has led to a noticeable surge in Western Digital’s stock price.
This powerful signal from a company focused on Hard Disk Drive (HDD) suggests that it will improve the foundations after separation from the flash memory business, providing compelling evidence that a cyclical rise in the data storage sector may be gaining traction.
Western Digital’s bright predictions surpass expectations
The main driver behind the updated investor enthusiasm was Western Digital’s business outlook for the fourth quarter, ending June 27, 2025. Management projected revenues to $230 million to $2.6 billion in land at a midpoint of $2.45 billion. This figure has been pleasantly ahead of the average analyst estimates circulating before the report.
It was equally convincing and profit forecast. The company has guided earnings per share (EPS) in the range of $1.25 to $1.65. The $1.45 midpoint is well above previous Wall Street expectations, indicating that the company is projecting ongoing revenue stability and profitability.
Furthermore, the total non-GAAP margin is projected to remain strong targeted between 40.0% and 41.0%, based on the margin expansion achieved in the third quarter. This forward-looking financial strength reflects the operational focus of the company that has been streamlined after the completion of the Sandisk (Flash Business) separation on February 21, 2025.
Western Digital’s cloud strength drives Q3 beats
Today’s Western Digital Stock Prediction
$65.65
46.90% upsideMedium purchase
Based on 20 analyst ratings
| Current price | $44.69 |
|---|---|
| High prediction | $100.00 |
| Average forecast | $65.65 |
| Low prediction | $40.00 |
Details of the Western Digital Stock Forecast
Western Digital’s optimistic Q4 forecast is built on solid performance in the third quarter (ends March 28, 2025), with the first quarter operating solely as an HDD-centric entity. Revenue of $2.29 billion fell slightly in turn from the results of the HDD segment last quarter (before the separation was fully reflected), but that represents a considerable amount Increases 31% year-on-year Compare it to the HDD segment from the same period last year. Meets the high end of the company’s guidance scope.
Importantly, WDC showed strong profitability, reporting a non-GAAP EPS of $1.36. The results comfortably beat the analyst consensus estimate of $1.06, showing effective cost management and lucrative pricing dynamics. Non-GAAP gross profit exceeded the expected 40% threshold and reached 40.1%.
Facilitating this performance is a continuing strong demand from the crowd segment, accounting for 87% of WDC’s total revenue in the third quarter. Cloud customers revenue reached $2 billion, showing a significant 38% increase from the previous year.
This surge directly links to the large datasets needed for exponential growth of data, particularly hyperscale cloud providers and fast-growing areas of artificial intelligence (AI).
As organizations deploy more AI applications and store huge amounts of relevant data, the need for cost-effective large-capacity storage solutions continues to accelerate. On providing a reliable, large capacity HDDS location, Western Digital is strategically focused and effectively positioned to capture this continuous wave of demand.
Western Digital launches dividend program
To further strengthen the positive narrative, Western Digital’s board has allowed it to be hired Quarterly Cash Dividend ProgramIt will begin in the fourth quarter, ending June 27th, 2025. The company has declared its first dividend of $0.10 per share on June 18, 2025 to record shareholders.
Although modest at first, starting a dividend program is a key milestone for the company after separating. It demonstrates management’s trust in the durability of its business model, its ability to generate consistent free cash flow, and its commitment to returning capital to shareholders.
The move suggests the current level of financial stability for HDD-centric companies and a positive outlook on sustainable profitability.
Upgrades and optimism follow WDC’s revenue
The combination of Q3 EPS beats, strong Q4 guidance and dividend initiation was well received by the analyst community. Following the report, several companies have repeated positive stances and issued upgrades. Headlines in the analyst report reflect positive sentiment, highlighting “future outlook,” “continuing cloud strength,” and “expanding profitability.”
Some analysts adjusted certain price targets, but Western Digital’s overall consensus rating remains Medium purchases based on 15 purchase ratings and 4 hold ratings From a recently voted analyst. The average analyst price target is around $66.42, meaning a potential rise from the stock’s price level right after the release of revenue.
Is Western Digital a potential storage recovery?
Western Digital Co. (WDC) Price Chart for Sunday, May 4, 2025
Western Digital’s recent revenue report, and more critically, forward-looking guidance, provides a strong indicator that the company is effectively navigating its post-segment transition and leveraging positive market trends. The key beats on Q3 profit, coupled with Q4 revenue and EPS forecasts, point to solid execution and strengthen the foundation.
Driven by the relentless expansion of cloud infrastructure and data-intensive demands of AI, WDC’s core HDD business appears to be well positioned for continued growth. When you start paying dividends, another layer of trust is added, suggesting that management believes positive momentum is sustainable.
While the high-tech sector always has an inherent circularity, Western Digital’s latest forecasts and strategic positioning provide compelling evidence that it may lead the welcome recovery phase of key data storage sectors.
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