Western Digital shares decline despite strong AI-driven earnings

Western Digital shares experienced a decline, falling approximately 5% to around $435, placing the stock roughly 46% below its 52-week high of $799.87 set in June. Despite this recent volatility, the company's stock has more than doubled since the start of 2026.

The recent price movement follows a strong fiscal fourth quarter for 2026, where revenue rose 44% year-over-year to $3.75 billion, driven by demand for high-capacity hard drives in data centers for artificial intelligence builds. Adjusted earnings per share reached $3.56, exceeding consensus estimates. Management has provided optimistic guidance for the first quarter of fiscal 2027, projecting revenue between $4.1 billion and $4.2 billion.

In a separate recent transaction, insider Cynthia Tregillis sold 235 shares at an average price of $477.27 under a pre-arranged Rule 10b5-1 trading plan. Following the sale, Tregillis retains over 113,000 shares in the corporation.