# Western Digital AI‑driven storage outlook

> Live situation record from CLSTR: https://clstr.news/situations/western-digital-ai-shift-and-earnings
> Updated: 2026-08-05T15:00:00.000Z. Sources: 39. Developments: 2.

Western Digital has deepened its AI‑focused strategy, adding former Nvidia AI executive Manuvir Das to its board and confirming that enterprise‑class HDD shipments are fully booked through end‑2026 with contracts extending to 2028. The appointment triggered a roughly 7 % share decline, though analysts maintain a price target about 31 % above the current level, suggesting the dip may be temporary.

SanDisk reported record fiscal Q4 2026 revenue of $8.97 billion, a 372 % year‑over‑year increase and 51 % sequential rise, driven by AI‑powered demand. Data‑center sales more than doubled to $2.98 billion and edge revenue grew 48 % to $5.43 billion. Adjusted earnings of $39.25 per share beat expectations, gross margin hit a record 84.6 %, and net income reached $6.9 billion. The board approved an additional $14 billion share‑repurchase program, raising total authorization to $15.5 billion, and signed eight new long‑term NBM agreements locking in at least $93.9 billion of future revenue.

For FY2027 Q1, SanDisk forecast revenue of $10.3‑$10.8 billion, below the Wall Street median, and adjusted EPS of $44‑$46, slightly above the $43.12 consensus. The guidance shortfall led to a 5‑10 % share decline and analysts such as Jefferies cut their price target to $1,750, underscoring heightened investor expectations for AI‑driven storage growth.

Western Digital’s own Q4 2026 results showed revenue of $3.75 billion, up 44 % year‑over‑year, but its guidance also missed market expectations, prompting a stock decline of more than 10 %.

## Claims

- Fourth‑quarter data‑center revenue was $2.98 billion, more than double the prior quarter. (corroborated by 14 sources)
- Sandisk shares fell about 5 % in regular trading and a further 3‑6 % in after‑hours following the earnings release. (corroborated by 13 sources)
- Sandisk approved an additional $14 billion share‑repurchase program, raising total authorization to $15.5 billion. (corroborated by 13 sources)
- Adjusted earnings per share for the quarter were $39.25, above analyst estimates of $34.96. (corroborated by 12 sources)
- SanDisk reported fiscal fourth‑quarter 2026 revenue of $8.97 billion, a 372 % year‑over‑year increase. (corroborated by 12 sources)
- Adjusted earnings per share for the quarter were $39.25, exceeding analyst estimates of about $35. (corroborated by 12 sources)
- Sandisk reported fourth‑quarter fiscal 2026 revenue of $8.97 billion, up 51 % sequentially and 372 % year‑over‑year. (corroborated by 11 sources)
- The company forecast first‑quarter fiscal 2027 revenue of $10.3‑$10.8 billion, below Wall Street’s $10.8 billion consensus. (corroborated by 11 sources)
- Data‑center revenue for the quarter was $2.98 billion, more than double the prior quarter. (corroborated by 10 sources)
- SanDisk shares fell between 5 % and 10 % after the earnings release. (corroborated by 10 sources)
- SanDisk reported fiscal fourth‑quarter 2026 revenue of $8.97 billion. (corroborated by 8 sources)

## Timeline

### 2026-08-05: SanDisk reports record Q4 earnings but shares tumble on muted guidance

SanDisk posted a record Q4 with $8.97 bn revenue and $39.25 EPS, but shares fell 5‑10% after guidance missed Wall Street expectations; the firm added $14 bn to its buyback and signed eight long‑term NBM deals.

37 sources. https://clstr.news/cluster/western-digital-forecasts-modest-q1-growth-as-shares-plunge-over-outlook

### 2026-07-26: Western Digital appoints former Nvidia AI leader, reports HDD contracts through 2028

Western Digital adds ex‑Nvidia AI manager Manuvir Das to its board, sees share dip of 7 % but analysts keep 30 % upside; enterprise HDD sales are locked through 2026 with some contracts to 2028.

3 sources. https://clstr.news/cluster/western-digital-appoints-former-nvidia-ai-leader-reports-hdd-contracts-through-2028

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Cite as: Western Digital AI‑driven storage outlook. CLSTR, https://clstr.news/situations/western-digital-ai-shift-and-earnings