
Western Digital (WDC) Stock Forecast & Price Target
Western Digital (WDC) Analyst Ratings
Bulls say
Western Digital has demonstrated significant financial improvement, with a gross margin expansion of 260 basis points quarter-over-quarter to 43.9%, attributed to strong nearline HDD demand and favorable product mix. The company's cloud revenue surged 31% year-over-year to $2.5 billion, representing 89% of total sales, which highlights its strategic focus on high-capacity drives and increasing adoption among hyperscale customers. Additionally, operating income reached $856 million, yielding a 30.4% margin and reflecting the company's effective cost management and successful performance against earnings guidance.
Bears say
Western Digital's consumer revenue decreased by 1% year-over-year, representing only 6% of total sales, indicating a declining demand in a segment that contributes minimally to overall performance. The company's balance sheet reflects a net debt of approximately $2.7 billion against $2.0 billion in cash, which raises concerns about financial flexibility amid high leverage levels relative to EBITDA. Although operating cash flow remains strong at $672 million and free cash flow is healthy at $599 million, the stagnant revenue growth signals potential challenges ahead in sustaining profitability.
This aggregate rating is based on analysts' research of Western Digital and is not a guaranteed prediction by Public.com or investment advice.
Western Digital (WDC) Analyst Forecast & Price Prediction
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