Western Digital expects quarterly revenue above estimates on strong storage demand

Jan 29 (Reuters) - Western Digital ⁠forecast third-quarter ⁠revenue ‍above Wall Street estimates on Thursday, signaling that demand for its hard drives and flash storage ‍for AI servers would continue to drive growth.

Shares ​of the San Jose, California-based company were up around 2% in after-hours ​trading. The stock rallied over the past year, having more than tripled in 2025.

The rapid adoption of artificial intelligence and data-driven workloads by ​hyperscalers, powered by staggering demand for hard drives in the global race to scale up AI-related infrastructure, ​is driving robust demand for Western Digital's products and solutions.

Western Digital's high-capacity hard disk ‌drives, or HDDs, are essential for mass-storing the vast datasets used to train AI models, ​while its enterprise solid-state drives (SSDs) provide ⁠the high-speed performance needed for AI workloads.

Analysts also see a stable pricing environment as demand ‌continues to outpace supply.

Western Digital expects third-quarter adjusted revenue of $3.2 billion, plus or minus $100 million, compared with analysts' estimate of $2.96 billion, ‌according to data compiled by LSEG.

It sees adjusted earnings per share of $2.30, ‌plus or minus 15 cents, compared with estimates of $1.96 per share.

Western Digital's second-quarter revenue came in at $3.02 billion, compared with the analysts' ‍average expectation of $2.92 billion.

Meanwhile, memory storage firm Sandisk also beat Wall Street expectations for second-quarter ⁠revenue on Thursday, sending its shares up around 12% in extended trading.

Sandisk reported second-quarter revenue of $3.03 billion, compared with estimates of $2.64 billion.

(Reporting by Juby Babu in Mexico City; Editing by Pooja Desai and Alan Barona)

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