Core Viewpoint - Western Digital plans to sell part of its stake in subsidiary SanDisk through a secondary offering, with a transaction size of approximately $3.09 billion (RMB 21.3 billion) [1][2]. Group 1: Transaction Details - The sale involves approximately 5.8 million shares of SanDisk, priced at $545 per share, representing a discount of about 7.7% from SanDisk's closing price on Tuesday [2]. - The transaction is expected to accelerate Western Digital's deleveraging process, potentially leading the company towards a net cash position [2]. - This move is anticipated to increase Western Digital's earnings per share by 4% to 6% in the short to medium term [2]. Group 2: Market Performance - SanDisk's stock has performed exceptionally well, with a cumulative increase of over 1500% since its spin-off from Western Digital in February 2025 [4]. - In 2026 alone, SanDisk's stock price rose nearly 150%, ranking first among S&P 500 constituents, while Western Digital's stock increased by 65%, placing third [4]. Group 3: Financial Performance - Western Digital reported a 25% year-over-year revenue growth to $3.02 billion for the second quarter of the 2026 fiscal year, exceeding Wall Street's expectations [6]. - The gross margin improved from 38.4% in the same period last year to 46.1%, with net profit soaring 209% to $1.842 billion [6]. - For the third quarter of the 2026 fiscal year, Western Digital expects revenue of $3.2 billion (±$100 million), surpassing analyst expectations [6].