Core Viewpoint - Western Digital Corporation (WDC) reported strong quarterly results and future outlook, driven by unprecedented demand for high-capacity HDDs due to the AI data center boom, exceeding Wall Street expectations [1][2][6]. Financial Performance - For Q2 FY26, Western Digital's total revenue increased by 25% year-over-year to $3.02 billion, surpassing analyst expectations of approximately $2.95 billion [2][3]. - The adjusted gross margin under non-GAAP was 46.1%, exceeding the expected 44.5% [2]. - Free cash flow was approximately $653 million, also above the forecast of $637 million [2]. - The adjusted EPS was $2.13, higher than the anticipated $1.93, with net profit increasing by 92% year-over-year to about $807 million [2][3]. Market Outlook - The company expects Q3 FY26 diluted EPS to range between $2.15 and $2.45, significantly above the consensus estimate of $1.99 [3]. - Total revenue for the upcoming quarter is projected to be between $3.1 billion and $3.3 billion, again exceeding analyst expectations [3]. Industry Context - The demand for enterprise-level high-capacity HDDs and SSDs is being driven by the rapid expansion of AI data centers, with major tech companies investing heavily in AI infrastructure [6][11]. - Western Digital, along with Seagate and SanDisk, has seen stock prices rise significantly, with Western Digital's stock increasing by 285% in 2025 and 60% since 2026 [1][6]. - The storage industry is experiencing a "super cycle," with a strong focus on nearline HDDs and enterprise SSDs to meet the growing storage needs of AI applications [7][11]. Supply Strategy - Western Digital and Seagate are not rushing to increase HDD production capacity, adhering to a "supply discipline" to avoid past cycles of overproduction and price wars [12][13]. - The company aims to enhance output through product structure and technology upgrades rather than expanding capacity aggressively [12].

| | | GAAP | | | | --- | --- | --- | --- | --- | | | Q2FY26 Q1FY26 | Q2FY25 | 0/0 | Y/Y | | Revenue | $3,017 $2,818 | $2.409 | +7% | +25% | | Gross Margin | 45.7% 43.5% | 37.7% | +220 bps | +800 bps | | Operating Income | $908 $792 | $560 | +15% | +62% | | Operating Margin | 30.1% 28.1% | 23.2% | +200 bps | +690 bps | | Diluted Net Income Attributable to Common Shareholders | $1,802 $1,154 | $455 | +56% | +296% | | Diluted Net Income Per Common Share | $4.73 $3.07 | $1.27 | +54% | +272% | 智通财经APP获悉，与闪迪、希捷共同 ...