-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
WDC reported strong Q3 FY 26 results, with revenue of $3.34B (+45% Y/Y, +11% Q/Q) modestly beating consensus of $3.25B, while non-GAAP EPS of $2.72 (+100% Y/Y, +28% Q/Q) significantly beat consensus by 14%. Non-GAAP gross margin reached 50.5% (+1,040 bps Y/Y, +440 bps Q/Q), and operating margin hit 38.6% (+1,260 bps Y/Y, +480 bps Q/Q) as higher capacity drives rolled out to customers. Cloud remained dominant at 89% of revenue, with exabyte shipments rising 34% Y/Y to 222 EB and over 4.1M latest-generation ePMR drive shipments (vs. 3.5M last quarter) supporting a healthy ASP uplift. Q4 guidance impressed, with a revenue midpoint of $3.65B (+40% Y/Y) beating the Street by 5% and non-GAAP EPS of ~$3.25 (+96% Y/Y) exceeding consensus by 18%, though these guidance beats fell short of major peer STX's earlier this week (+9% / +26%). We believe the ongoing NAND shortage continues to provide incremental tailwinds, extending WDC's pricing power runway and supporting margin expansion in the coming quarters.