Western Digital stock drops as margin outlook meets trading pressure
Published on 11/06/2026 at 16:38 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSMargin expansion faces a tougher test
- Western Digital's fiscal first-quarter non-GAAP gross margin reached 58.1 percent, supported by pricing and higher-capacity drives.
- Management targets fiscal second-quarter revenue of 5.1 billion US dollars and non-GAAP gross margin of 60 to 61 percent.
- Higher DRAM and NAND costs, moderating price growth and valuation remain key risks for investors.
Western Digital stock traded at 232.80 euros on Lang & Schwarz at 16:32 CET on Friday, November 6, 2026, 9.92 percent below the Xetra close of Thursday, November 5, at 277.80 euros. The move also places the quote 9.92 percent below the 258.45-euro level cited in the company's latest report at 14:31 CET the same day.
The operating backdrop remains stronger than the share-price performance. In an analysis published by Yahoo Finance on Thursday, November 5, management's non-GAAP gross-margin target for fiscal second-quarter 2027 was 60 to 61 percent, above the 58.1 percent achieved in the first quarter.
Pricing remains central to the outlook
Average selling price per terabyte rose 28 percent year over year in the first quarter, accelerating from growth in the high teens in the prior quarter. Long-term customer agreements include contractual price increases, while tight supply has supported spot pricing. The shift to higher-capacity drives and greater areal density is also intended to raise profitability without a matching increase in drive-unit production.
Management expects fiscal second-quarter revenue of 5.1 billion US dollars, plus or minus 100 million US dollars. At the midpoint, that would represent 69 percent year-over-year growth. The company also sees room for further average-price-per-terabyte increases over the next three to four quarters.
Input costs remain a risk
Higher DRAM and NAND costs could limit reductions in cost per terabyte, while management expects pricing growth to moderate eventually. For investors, the next test is whether tight supply, product transitions and data-center demand can sustain margin expansion after the sharp first-quarter improvement.
Investors can follow the real-time quote of Western Digital stock for further trading updates.
Western Digital Corporation at a glance
- Company: Western Digital Corporation
- ISIN: US9581021055
- Ticker: WDC
- Lang & Schwarz quote: 232.80 euros at 16:32 CET on November 6, 2026
- Change versus Xetra close: minus 16.20 percent against 277.80 euros on November 5, 2026
- Fiscal second-quarter revenue guidance: 5.1 billion US dollars, plus or minus 100 million US dollars
- Fiscal second-quarter non-GAAP gross-margin guidance: 60 to 61 percent
The broader S&P 500 market context remains relevant as investors reassess artificial-intelligence infrastructure spending and technology valuations.
