Western Digital Corp (WDC) just proved that old-school hard drives aren't dead yet. The company reported fiscal Q2 2026 results Thursday after the close, and the numbers tell a story about how AI's insatiable appetite for storage is breathing new life into the HDD business.

The Numbers That Matter

Western Digital crushed expectations across the board:

• Q2 Revenue: $3.02 billion versus estimates of $2.92 billion
• Q2 Adjusted EPS: $2.13 versus estimates of $1.92

Revenue climbed 25% compared to the same quarter last year. The company generated $745 million in operating cash flow and $653 million in free cash flow during the quarter. Gross margin came in at 45.7%, or 46.1% when adjusted.

"Western Digital's strong performance this quarter reflects our disciplined execution to meet demand in the AI-driven data economy, and the confidence our customers place in our ability to deliver reliable, high-capacity HDDs at scale," said Irving Tan, CEO of Western Digital.

Looking Ahead

The outlook is even more impressive. Western Digital expects fiscal Q3 revenue between $3.10 billion and $3.30 billion, compared to analyst estimates of just $2.96 billion. Adjusted earnings should land between $2.15 and $2.45 per share versus the $1.96 consensus.

"Our business continues to strengthen. We expect strong revenue growth and improved profitability driven by continued data center demand and by the adoption of our high-capacity drives," the company said.

Western Digital's board also declared a quarterly cash dividend of $0.125 per share, payable March 18 to shareholders of record as of March 5.

Company executives are scheduled to discuss the quarter in more detail on a conference call at 4:30 p.m. ET.

How the Stock Reacted

WDC Price Action: Western Digital shares were down 0.29% in after-hours trading at $277.59 at the time of publication Thursday.