Western Digital shares drop ahead of earnings release

Western Digital Corp. shares fell 4.0% in morning trading today as the company prepares to report fiscal first-quarter 2027 earnings after the market close.

Analysts expect adjusted earnings per share of approximately $4.08 on revenue of about $4.14 billion, which would represent roughly 47% year-over-year revenue growth.

The stock faced pressure following its previous earnings report in August, when the market responded negatively to the results.

Morgan Stanley analyst Erik Woodring lowered his price target to $643 from $676 on Tuesday while keeping an Overweight rating. He said the stock's current valuation already reflects a demand peak that available data does not support.

UBS and Wells Fargo also reduced their price targets in October due to concerns about competitive supply pressures. Toshiba plans to nearly double its data-center hard-drive capacity, while China's ChangXin Memory Technologies has made recent advances in the sector.

Bank of America raised its price target to $800 on Wednesday. Wedbush maintained an Outperform rating with a $650 target, projecting the company will exceed estimates and provide strong guidance.

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