Western Digital outlook upgraded to positive by S&P Global

S&P Global Ratings has upgraded the outlook for Western Digital from stable to positive, while maintaining its issuer credit rating at BBB-. The decision is driven by improved cash flow generation and low debt levels.

The upgrade reflects growing demand for high-capacity data storage driven by artificial intelligence. Major cloud providers are increasing storage needs to train AI models, preserve datasets, and manage inference results. S&P anticipates strong business growth and margin improvements through fiscal year 2027, contingent on hyperscale customer purchases, industrial capacity, and pricing trends.