Western Digital stock gains 2.31 percent as valuation risks mount

Published on 09/25/2026 at 16:47 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Western Digital stock traded at USD 460.73 on Nasdaq on September 25, 2026, after a USD 10.42 move from the prior close. Fiscal Q4 revenue reached USD 3.75 billion, up 44 percent year over year.

Reinraum-Fertigung von Festplatten, Motiv zu Western Digital, US9581021055 — Western Digital (ISIN US9581021055) fertigt Festplatten in einem sterilen Reinraum für Rechenzentren weltweit heute, Illustration mit AI erstellt.

Western Digital (ISIN US9581021055) stock was trading at USD 460.73 on Nasdaq at 10:46 a.m. ET on September 25, 2026, up 2.31 percent from the prior close of USD 450.31. The valuation debate sharpened after Simply Wall St published a September 25, 2026 assessment that placed fair value at USD 329.76.

Revenue accelerates in fiscal Q4

Western Digital reported USD 3.75 billion in fiscal fourth quarter revenue for the period ended July 3, 2026, an increase of 44 percent from the prior year, according to Stock Titan.

GAAP diluted earnings per share rose to USD 8.21 from USD 0.67, while GAAP operating margin reached 41.7 percent in fiscal Q4 2026, the filing summary reported through Stock Titan. Cash flow from operations totaled USD 1.389 billion for the quarter.

Guidance keeps the bar high

Fiscal 2026 revenue reached USD 12.919 billion, up 36 percent year over year, according to Stock Titan. The comparison matters because Western Digital entered the next fiscal year after converting the latest quarter's growth into a full-year revenue increase.

For fiscal first quarter 2027, management guided to revenue of USD 4.1 billion plus or minus USD 100 million and non-GAAP earnings per share of USD 4.00 plus or minus USD 0.15, figures carried by Stock Titan. That range gives investors a concrete test for whether demand can sustain the fiscal Q4 pace.

Valuation now sets the counterpoint

Simply Wall St said on September 25, 2026 that its most followed narrative viewed Western Digital as 37 percent overvalued, with a USD 329.76 fair-value estimate. The same assessment listed a 17.5 times price-to-earnings ratio against a 19.9 times global technology average.

The risk case centers on margin durability: the valuation framework highlighted aggressive capacity expansion, cheaper flash storage and changes in the hard-drive market as potential pressure points, according to Simply Wall St. The stock's 139.91 percent year-to-date gain listed on that page makes the valuation gap a material counterweight to the earnings growth.

Stock trades above USD 450

Western Digital stock was trading at USD 460.73 on Nasdaq at 10:46 a.m. ET on September 25, 2026, with a session range of USD 447.69 to USD 461.59 and volume of 2,051,634 shares. Market capitalization stood at USD 158.805 billion, while the 52-week range was USD 105.42 to USD 799.87.