Fiscal 2026 fourth-quarter revenue, net profit and adjusted EPS all topped expectations, but investors appeared focused on whether growth can keep outpacing forecasts after a sharp run-up in the stock.
Western Digital shares fell 10.67% in after-hours trading to 463.78 even after the company reported fiscal 2026 fourth-quarter results that beat market expectations and issued a fiscal 2027 first-quarter outlook above consensus. Fourth-quarter revenue came in at $3.75 billion, ahead of expectations of $3.692 billion and up from $2.605 billion a year earlier, while net profit rose to $3.195 billion from $282 million. Adjusted EPS (earnings per share) was $3.56, topping the analyst estimate of $3.31. For fiscal 2027 first quarter, Western Digital projected revenue of $4.0 billion to $4.2 billion, with a midpoint of $4.1 billion above the $4.04 billion consensus, EPS of $3.85 to $4.15 versus expectations of $3.77, and non-GAAP gross margin (profit before standard accounting adjustments) of 55% to 56%. The pullback suggested investors have shifted from focusing on earnings recovery to whether growth can continue to beat expectations, with profit-taking pressure rising after several strong quarters and a substantial climb in the share price.