Financial Data and Key Metrics Changes - Revenue for Q3 2026 was $74.6 million, an increase from $62.7 million in the prior quarter and $68.7 million in the same quarter last year [14] - GAAP gross margin improved to 38.8% from 37.6% in the prior quarter but decreased from 40.6% in Q3 2025 [16] - GAAP net loss narrowed to $27.8 million, or a loss of $2.03 per share, compared to a net loss of $46.5 million in the previous quarter and $75.3 million in the year-ago quarter [19] - Non-GAAP loss for the quarter was $4.9 million, or a loss of $0.36 per share, an improvement from a loss of $7.1 million in the prior quarter [20] Business Line Data and Key Metrics Changes - Tape sales doubled quarter-over-quarter, driven by demand for cost-effective storage solutions [10] - The services business has been in contraction but showed signs of stabilization, with management indicating potential flattening of contraction [30] Market Data and Key Metrics Changes - The company reported a strong backlog of over $20 million, significantly above the historical run rate of $8 million to $10 million, indicating robust demand [15] - Component availability issues are impacting the entire industry, with prices for critical components doubling or tripling recently [6] Company Strategy and Development Direction - The company is focusing on strengthening its balance sheet and has successfully reduced term debt by approximately 50% through a debt exchange [5] - Quantum is positioning itself to leverage its Scalar tape libraries and ActiveScale storage solutions to meet the growing demand for data storage amid rising costs of flash and disk [9] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding Q4 forecasts due to supply chain challenges, emphasizing that the uncertainty lies in fulfillment and shipping rather than demand [7][22] - The company is optimistic about long-term margins returning to the 40% range once supply chain issues stabilize [47] Other Important Information - The company has undergone restructuring initiatives that have lowered its cost structure and improved operational efficiencies [21] - The newly appointed CFO, Will White, is expected to contribute to the company's financial strategy and operations [13] Q&A Session Summary Question: Insights on primary storage systems performance - Management noted a slow start to the year but observed strength across all product lines in Q3, indicating confidence in primary storage recovery [28] Question: Backlog composition and drivers - The elevated backlog is driven by strong demand, although there are some component shortages; management expects the backlog to remain healthy [29] Question: Services business contraction - Management indicated that execution issues and discounting practices have affected service performance, but improvements are anticipated [31] Question: Gross margin expectations for Q4 - Management acknowledged the challenges posed by rising component prices and indicated that maintaining Q3 margins would be a good achievement [34] Question: Demand for tape sales - Demand for tape is strong across various sectors, with customers migrating data back from the cloud to on-premise solutions due to storage constraints [38] Question: Multimillion-dollar deals in backlog - The multimillion-dollar deals are primarily with hyperscalers, reflecting increased order sizes and a combination of products [41]

Key Takeaways Seagate reported record Q2 revenues of $2.83B, up 22% year over year.STX shipped 190 exabytes, with data center revenues rising 28% year over year.Seagate sees Q3 revenues of about $2.9B and margin near 30% at midpoint.Seagate Technology Holdings plc (STX) reported record financial performance for the fiscal second quarter of 2026, supported by strong demand in data center markets and continued progress in its technology roadmap. In the second quarter, the company’s revenues reached $2.83 bill ...

CAMARILLO, Calif., Feb. 17, 2026 (GLOBE NEWSWIRE) -- Qualstar Corporation (OTC: QBAK), a trusted provider of scalable tape storage solutions, and ATTO Technology, Inc., a global leader in high-performance storage connectivity, today announced the successful testing and certification of ATTO XstreamCORE 8100T Intelligent Bridge with Qualstar’s complete Q-Series family of tape libraries, from the Q8 through the new Q1000+. This qualification enables organizations to integrate high-capacity LTO tape storage—su ...

Core Viewpoint - Western Digital Corporation (NASDAQ:WDC) is experiencing significant upward revisions in price targets from major financial institutions, indicating strong growth potential and improved profitability forecasts. Group 1: Price Target Increases - Cantor Fitzgerald raised its price target on Western Digital from $325 to $420 while maintaining an Overweight rating after the company's Innovation Day event [1] - Goldman Sachs increased its price target from $220 to $250, keeping a Neutral rating, and confirmed that the HAMR product rollout is on track for the first half of 2027 [3] Group 2: Financial Projections - Cantor Fitzgerald noted that Western Digital's expected growth and profitability are significantly better than previously projected, forecasting earnings per share for calendar year 2028 to range between $19 and $32 [2] - Goldman Sachs raised its 2026-2028 non-GAAP earnings per share estimates for Western Digital by an average of 22% following the company's updated long-term guidance [4] Group 3: Product Developments - Western Digital announced that an additional customer has entered the qualification stage for its HAMR solutions, indicating progress in its product development pipeline [4]

The artificial intelligence (AI)-driven infrastructure buildout is driving significant demand for memory and storage solutions, supporting companies like Western Digital (WDC). Western Digital focuses on manufacturing high-capacity hard disk drives, a critical component for storing the vast datasets required by AI workloads. From cloud service providers to hyperscale data centers, customers are racing to secure more storage to keep pace with AI adoption. This surge in demand has tightened supply, lifted p ...

The Singapore-based Seagate Technology Holdings plc (STX) builds the backbone of the digital economy. With a market cap of approximately $92.9 billion, the company designs and manufactures hard disk drives, solid-state drives, hybrid drives, and storage subsystems. It also delivers scalable edge-to-cloud platforms that power data centers, cloud providers, enterprises, and equipment manufacturers worldwide. Over the past 52 weeks, Seagate’s shares have surged 319.8%, significantly outperforming the S&P 50 ...

Core Insights - The S&P 500 has had a slow start this year, while the Dow Jones Industrial Average reached a record 50,000, driven by investments in undervalued tech stocks, particularly in the SaaS sector and AI opportunities [1] Group 1: Ciena - Ciena is a leader in networking and connectivity, with products essential for streaming, e-commerce, and cloud services, and is increasingly in demand for AI infrastructure [4] - The company's data center business is growing rapidly, with expectations to double last year's sales by 2025 [4] - Ciena's addressable market was $600 billion last year, projected to grow to $1 trillion by 2028 [6] - The stock gained 176% last year, indicating strong growth potential [7] Group 2: Sandisk - Sandisk has seen a remarkable increase of 1,440% since becoming a standalone public company, driven by new deals with data center clients [8] - Revenue increased by 31% sequentially and 61% year over year in the second quarter of fiscal 2026 [8] - The company specializes in NAND flash memory, which is in high demand for AI hyperscalers and data centers, with data center revenue up 64% sequentially [10] - Adjusted earnings per share (EPS) rose to $6.20 in the second quarter, up from $1.23 last year [10] - The stock is considered reasonably priced at 15 times trailing-12-month sales [11] Group 3: ServiceNow - ServiceNow has been significantly affected by the market sell-off, down 50% over the past year, but continues to grow rapidly [12] - The company is a leader in workflow software, serving 8,800 clients, and is enhancing its services through partnerships with AI companies [13] - The stock trades at a P/E ratio of 29, suggesting potential for expansion in 2026 [14]

SAN JOSE, Calif.--(BUSINESS WIRE)--Western Digital Corporation (Nasdaq: WDC) today announced management participation in the following upcoming investor conference: Event: Morgan Stanley Technology, Media & Telecom Conference Date: Tuesday, March 3, 2026, at 7:45 a.m. PT / 10:45 a.m. ET The management presentation will be available as a live webcast, accessible through WD's Investor Relations website at investor.wdc.com. An archived replay will be accessible through the website shortly afte. ...

Group 1: Market Overview - The analysis covers the performance of the S&P 500 index, indicating a general trend in the market [1] - The report highlights the fluctuations in stock prices of major companies, including SanDisk Corporation, Western Digital Corporation, and Seagate Technology PLC [1] Group 2: Company-Specific Insights - SanDisk Corporation's recent financial performance shows a significant increase in revenue, contributing positively to its market position [1] - Western Digital Corporation is facing challenges due to supply chain issues, impacting its production capabilities and overall profitability [1] - Seagate Technology PLC has reported a decline in sales, attributed to decreased demand in the consumer electronics sector [1]

Core Viewpoint - Western Digital's stock has surged 970% over the past year, driven by AI storage demand, margin expansion, and strategic spin-offs, indicating a significant shift in the company's business model towards AI infrastructure rather than traditional memory chips [1][14]. Financial Performance - In fiscal Q2 2026, Western Digital reported revenue of $2.655 billion, shipping 215 exabytes of storage, with gross margins reaching 46.1%, a notable increase from the previous year [3]. - The company anticipates full-year fiscal 2026 revenue to approximately double, exceeding $12 billion, supported by multi-year procurement agreements with major customers [3][4]. Technology and Innovation - Western Digital is investing in Heat-Assisted Magnetic Recording (HAMR) technology, which is expected to significantly reduce costs associated with AI storage over the next decade [4][5]. - The flagship product is a 40TB UltraSMR drive, with plans for volume production by late 2026, and a target of 100TB per drive by 2029 [5][6]. - New technologies, such as 'High Bandwidth Drive' and 'Dual Pivot' design, are set to enhance throughput and energy efficiency, addressing the needs of data centers [7][8]. Market Position and Strategy - Western Digital has transitioned from a cyclical hardware company to a near-monopoly supplier of scalable AI data storage, with long-term contracts and a clear technology roadmap [14]. - The company has locked in supply agreements with major cloud service providers like AWS, Microsoft Azure, and Google Cloud, indicating a shift towards infrastructure rather than traditional hardware sales [4][10]. Investment Opportunities - The separation of Western Digital and Sandisk has created distinct investment opportunities, allowing investors to capitalize on different market cycles related to AI infrastructure and NAND flash [9][11]. - Management has set ambitious long-term targets, including revenue growth of over 20% per year and gross margins above 50%, alongside a $6 billion share buyback program [12][13]. Industry Outlook - Demand for storage exabytes is projected to grow over 25% annually in the next five years, with AI and cloud services now constituting approximately 90% of Western Digital's revenue [13]. - Institutional ownership has increased to 92%, reflecting investor confidence following the company's restructuring [13].