Western Digital Ships 70 Exabytes — Will Its Next-Gen Drives Up The Game In The AI Data Race?

Western Digital Corporation’s (WDC) recent earnings call for the first quarter of fiscal year 2026 provides a comprehensive overview of the company’s current position, its strategies to navigate market dynamics, and its future prospects. This analysis extracts key insights from the call, presenting a nuanced investment thesis reflecting both the strengths and challenges evident from the results. Western Digital continues to experience significant demand driven by the proliferation of AI across industries, necessitating robust data storage solutions. The company is capitalizing on these trends by deploying high-capacity HDD solutions such as ePMR and UltraSMR, which offer competitive advantages in terms of scalability and cost-effectiveness. The company’s ability to meet rising demand is bolstered by strong customer commitments that extend well into 2027, underscoring confidence in its technology, including the anticipated transition to HAMR technology. For the quarter, Western Digital reported revenues of $2.8 billion, reflecting a 27% year-over-year increase.