Western Digital Earnings Nearly Double on AI, Cloud Demand

WDC develops, manufactures, and sells data storage solutions, including cloud, hard drives, and industrial-grade data center solutions, all of which are experiencing heavy hyperscaler demand. The company’s third-quarter fiscal 2026 report showed $3.3 billion in revenue (a 45% year-over-year rise), per-share earnings of $2.72 (nearly double last year), and quarterly revenue and EPS guidance of $3.65 billion and $3.25, respectively.

No wonder WDC shares are up 295% so far this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock.

Institutions Love Western Digital

Institutional volumes reveal plenty. In the last year, WDC has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in WDC shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Western Digital.

Western Digital Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, WDC has had strong sales and profits:

• 1-year sales growth rate (+50.7%)
• Profit margin (+17%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +78.2%.

Now it makes sense why the stock has been generating Big Money interest. WDC has a track record of strong financial performance.

Marrying great fundamentals with MoneyFlows software has found some big winning stocks over the long term.

Western Digital has been a top-rated stock at MoneyFlows for years. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s had 56 Big Money outlier inflow signals since 1994. The blue bar below shows when WDC was a top pick in the last 20 years…this is an institutional favorite:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Western Digital Price Prediction

The WDC action isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in WDC at the time of publication.

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