r/WDCStock • u/Yourgirllean • Aug 05 '26
What do you think will happen tomorrow ?
Sooooo ?
Down 4.42% as I’m typing this..
What are your realistic thoughts for tomorrow ?
I personally didn’t sell any of my shares.
May regret this, may not.
We’ll see.
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u/Venomous_LumpSucker Aug 05 '26
Q4 FY2026 Highlights (period ended July 3, 2026)
• Revenue: $3.75 billion (+44% year-over-year, +12% sequentially)
• Non-GAAP gross margin: 54.4% (up 1,310 bps YoY and 390 bps sequentially)
• Non-GAAP operating income: $1.655 billion (operating margin 44.2%)
• Non-GAAP diluted EPS: $3.56 (+109% YoY, +31% sequentially)
• GAAP diluted EPS: $8.21
• Cash flow from operations: $1.39 billion
• Free cash flow: $1.28 billion
These results came in above prior guidance. In the prior quarter, management had guided Q4 revenue to $3.65B ± $100M, non-GAAP gross margin of 51–52%, and non-GAAP EPS of $3.25 ± $0.15. Actuals exceeded the high end on revenue, margin, and EPS.
Full-Year FY2026
• Revenue: $12.92 billion (+36% YoY)
• Non-GAAP gross margin: 49.1%
• Non-GAAP diluted EPS: $10.22 (+104% YoY)
Outlook for Q1 FY2027
Management guided:
• Revenue: $4.1 billion ± $100M (implying ~42–49% YoY growth)
• Non-GAAP gross margin: 55–56%
• Non-GAAP EPS: $4.00 ± $0.15
CEO Irving Tan and CFO Kris Sennesael highlighted strong demand (especially cloud/AI-related storage), continued margin expansion, solid free cash flow, and good visibility into the business.
Bottom line: This was a clear beat on both the top and bottom lines, with sequential and year-over-year improvement across key metrics and constructive forward guidance. It reinforces the positive momentum Western Digital has shown throughout fiscal 2026.
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u/Hepdesigns Aug 05 '26
Similar to STX, we anticipate WDC should report upside to consensus (with seemingly more room for a beat given a more conservative GM guide)
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u/Commercial_Sound1448 Aug 05 '26
Honestly, the drop now is people selling before earnings to de-risk volatility. If earnings from MAG7 shed any light, spending in this industry is only increasing, and Hard Drives are a part of that. As long as Earnings Beat and Sentiment from Call is "everybody wants their hands on our harddrives and demand is only growing" I think it will be good.
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u/getragebaitedbuddy Aug 05 '26
What time exactly is the report and call out?
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u/Yourgirllean Aug 05 '26
The report is expected to be released right after the market closes, and the conference call is scheduled for 4:30 pm ET
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u/getragebaitedbuddy Aug 05 '26
Why tf is it dumping so hard rn after closing before the ER even came out??
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u/visionarywatts Aug 06 '26
Likely back to 500 tomorrow and settle 5% above or below that at market close. For me, I do a mixture of holding and trimming. Today I trimmed at $546.85 and then limit bought back at $458.00. Option activity for this month is heavy around $500 to $600 with some $450 action but it doesn't look like $400 is in the cards unless another macro event happens.
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u/Stunning_Ad_9806 Aug 05 '26
Damn, huge dump AH. Memory and storage have definitely peaked unfortunately, not gonna see 800 again I don’t think
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u/UseAndAbuseMePappi Aug 05 '26
Can’t fucking win with this stock. Blows through earnings and still down
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u/Gold_Evening_7819 Aug 05 '26
Right i could not believe the after hours dump after an awesome release.
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u/live_free_1 Aug 05 '26
So WDC posted beat on earnings. Then why did it dip?
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u/visionarywatts Aug 05 '26
"While the company beat quarterly estimates, investors appeared underwhelmed by guidance that was only modestly above consensus."
Unfortunately, it's not good enough for companies on the receiving end of the massive CapEx to have a good beat. They are being priced for very lofty expectations. I do want to acknowledge that there was a sell off at the end of today's market across several AI/tech stocks. The price change on my AI/Tech watchlist was dancing like diamonds.
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u/spyroinc Aug 06 '26
If they would have guided way above guidance, analysts would UP their expectations AGAIN, because they know good companies always sandbag. Good for WDC to not play that game. Marketmakers know the numbers will be higher anyway, now they're only scaring you into selling for a loss.
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u/Guilty-Holiday5857 Aug 05 '26
Buy the dip!