Western Digital Corp. reported fiscal fourth-quarter adjusted earnings of $3.56 per diluted share and revenue of $3.75 billion on Wednesday, both exceeding Wall Street estimates. Despite the beat, WDC shares tumbled 10.8% in after-hours trading after closing the regular session down 5.4%. Investors appeared underwhelmed by the company's first-quarter fiscal 2027 guidance, which came in only modestly above consensus. The sharp selloff prompted confusion among retail traders on Stocktwits, who questioned the disconnect between the earnings performance and the stock's reaction. Western Digital is a hard-drive maker positioned to benefit from accelerating data creation driven by artificial intelligence infrastructure demand.
Western Digital Reports Q4 Adjusted EPS of $3.56, Revenue of $3.75 Billion
Western Digital reported fiscal fourth-quarter non-GAAP earnings of $3.56 per diluted share, up from $1.70 a year earlier and ahead of the $3.3 expected by analysts, according to fiscal.ai. Revenue for the quarter rose to $3.75 billion from $2.61 billion a year earlier, topping analysts' expectations of $3.70 billion, according to fiscal.ai.
"As global data creation continues to accelerate, we enter fiscal year 2027 with continued confidence in the durability of demand and with increasing visibility into our business," Chief Executive Officer Irving Tan said.
Western Digital Forecasts Q1 FY27 Revenue of $4.1 Billion, Adjusted EPS of $3.85-$4.15
For the first quarter of fiscal 2027, Western Digital forecast revenue of $4.1 billion, plus or minus $100 million, and adjusted earnings per share of $3.85 to $4.15. Analysts were expecting adjusted earnings of $3.76 per share on revenue of $4.04 billion.
Stocktwits Retail Traders Attribute Selloff to Technicals and Algos
On Stocktwits, retail sentiment on WDC jumped to 'bullish' from 'bearish' over the past 24 hours, while message volume improved to 'high' from 'normal' during the same period.
One trader said the reaction was driven by "technicals and algos," adding that "a 10% is ridiculous" after the company beat expectations across the board. The trader also said, "In no world does this beat on all levels equate to a crash, let alone being flat."
Another retail investor pushed back against the market's reaction, saying "they beat top and bottom," and added that the bears were using the slightly softer guidance "as an excuse."
WDC shares have surged more than 190% year to date.
FAQ
What did Western Digital report for its fiscal fourth-quarter earnings?
Western Digital reported fiscal fourth-quarter adjusted earnings of $3.56 per diluted share and revenue of $3.75 billion, both exceeding Wall Street estimates of $3.3 per share and $3.70 billion, according to fiscal.ai.
Why did WDC stock fall 10.8% after-hours despite beating earnings estimates?
Investors appeared underwhelmed by Western Digital's first-quarter fiscal 2027 guidance, which came in only modestly above consensus expectations. Retail traders on Stocktwits attributed the selloff to "technicals and algos."
What is Western Digital's guidance for Q1 fiscal 2027?
Western Digital forecast first-quarter fiscal 2027 revenue of $4.1 billion, plus or minus $100 million, and adjusted earnings per share of $3.85 to $4.15. Analysts were expecting adjusted earnings of $3.76 per share on revenue of $4.04 billion.
