Reading the tape
NASDAQ: WDC
Western Digital Corporation
Technology · Computer Hardware
Market Cap
$146.30B
52w High
$446.62
52w Low
$43.60
P/E
22.95
Volume
15.41M
Outstanding Shares
339.04M
Price vs Fundamentals
Why The Stock Is Moving
Optimism is getting priced inHigh confidence
1Y Price: 881.84%Revenue (TTM): 9.1%FCF (TTM): 240.16%P/FCF: 89th pct
What changed
The stock rose 881.84% over the last year. Revenue grew 9.1% over the trailing twelve months. Operating margin moved from 22.62% to 30.78%. Free cash flow grew 240.16% over the trailing twelve months.
What the market seems to be pricing
The stock is trading toward the richer end of its historical P/FCF range (89th percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.
What would invalidate this read
Operating margin is at 30.78% — continued expansion would be needed to justify the premium. Revenue growth of 9.1% is encouraging, but any deceleration puts the stretched multiple at risk. This read changes if revenue, margins, and cash flow continue to improve faster than expected — in that case the richer multiple could still prove conservative.
Company profile
Western Digital Corporation develops, manufactures, and sells data storage devices and solutions in the United States, China, Hong Kong, Europe, the Middle East, Africa, rest of Asia, and internationally.
CEOTiang Yew Tan
SectorTechnology
IndustryComputer Hardware
Employees40,000
IPO dateOct 31, 1978
Valuation
Forward P/E—
EV/EBITDA12.86
Enterprise value$24.93B
Stock splits
Feb 24, 2025↑ Forward
Every 1000 shares became 1323
Jun 4, 1997↑ Forward
Every 1 shares became 2
Profitability & growth
Revenue growth45.47%
Gross margin45.43%▲38.17%vs FY2024
Operating margin30.78%▲484.30%vs FY2024
ROE35.04%▲575.02%vs FY2024
Analyst consensus
RatingBuy
Target price$407.54▼5.56%
44
Buy
16
Hold
1
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
Jul 29, 2026
Q3 FY26 · EPS est $3.21 · Revenue est $3.65B
View
Dividends
$0.50/shareQuarterlySafeWDC pays a dividend with a 0.12% declared yield, covered 29.2× by free cash flow.
Declared Yield
0.12%
Annual Div / Share
$0.50
TTM $0.45
5yr CAGR
-13.97%
Dividend has been cut
Payout Ratio
2.68%
Safe
Dividend Growth Rate
3yr CAGR
-13.97%
5yr CAGR
-13.97%
10yr CAGR
-10.47%
Dividend Safety
10/10Safe
Dividend History
Annualized dividend cycles per share
YearAnnual DivYoY
2026$0.50-59.5%
2020$1.23-18.4%
2019$1.51+0.0%
2018$1.51+0.0%
2017$1.51+0.0%
2016$1.51+11.1%
2015$1.36+44.0%
Income Projection
Invest
$
Growth rate:
Reinvest dividends
Today
$1/yr
$0/mo
In 5 yrs
$1/yr
$0/mo
In 10 yrs
$1/yr
$0/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$1/yr $0/mo | $1/yr $0/mo | $1/yr $0/mo |
Analysis
Dividend Strengths
Well-covered by free cash flow
The dividend is covered 29.2× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.
Risks to Watch
Dividend has been reduced
The 5-year dividend CAGR of -13.97% is negative, indicating the payout has been cut over this period.