By Britney Nguyen
Investors are panning upbeat results from Western Digital and Sandisk after massive one-year stock rallies
Western Digital stock was down in after-hours trading on Thursday.
Investors were punishing memory stocks in Thursday's extended session - even after strong earnings reports.
Western Digital shares (WDC) were down 8% in after-hours action, joining shares of Sandisk (SNDK), which were off 7%. These could be sell-the-news reactions to strong earnings reports given the extent of gains both stocks have made recently.
Western Digital's stock is up about 900% over the past year, and shares of Sandisk, which spun out of Western Digital early in 2025, are up roughly 3,300%.
See also: Sandisk's eye-popping earnings beat fails to extend the stock's big rally
The fiscal third-quarter report from Western Digital featured revenue of $3.3 billion, up 45% from a year ago, and ahead of the FactSet consensus for $3.2 billion. Adjusted earnings of $2.72 a share also topped estimates for $2.39.
&#34;The demand drivers are clear: Virtually every AI workload, from training, inference, agentic AI to physical AI, creates data that is stored persistently and cost-efficiently on HDDs,&#34; Western Digital CEO Irving Tan said in a statement, referring to the company's hard disk drives. He also noted the company's 50.5% gross margin in the quarter, which was up significantly from a year before.
Citing confidence in the business, Tan announced a 20% increase to the quarterly dividend, which will become 15 cents a share.
For the June quarter, Western Digital is guiding for revenue to come in at $3.65 billion, plus or minus $100 million, which is above the FactSet consensus for $3.5 billion. The company's outlook for adjusted EPS calls for that to come in at $3.25, plus or minus 15 cents - also ahead of expectations for $2.75 on FactSet.
Ahead of the report, Bank of America analyst Wamsi Mohan noted a &#34;favorable pricing environment&#34; due to demand outstripping supply.
Don't miss: Micron's stock has boomed on AI optimism. Now comes the 'tricky part.'
-Britney Nguyen
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04-30-26 1841ET

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Don't just focus on computing power; the golden age of storage has arrived! Seagate has delivered—revenue surged 44% year-over-year, non-GAAP gross margin soared to a record high of 47%, free cash flow approached $1 billion, and Q4 guidance was significantly raised. The baton has been passed to Western Digital and SanDisk (after market close, April 30). Faced with the frenzied realization of gains in the storage chain, will you follow the trend based on gut feeling, or will you use a "scientific yardstick" to measure the best odds?[Giveaway Topic] The Great Battle of Storage Giants' Earnings ReportsHow to Participate:1️⃣ Share Your Trades: Share your real-time trading operations and your entry logic.2️⃣ Opinion Sharing: Choose one of the three storage companies and comment on its earnings report or AI transformation strategy.🏆Exclusive Prize Pool:"Storage Power Prophet": 3 lucky users will receive a Changqiao custom pillow."Storage Power Pioneer Award": 10 HKD stock voucher for high-quality content."Interactive Lucky Draw Award": 288 task coins will be randomly awarded to active users.Tip: Share your winnings and strategy analysis for double your chances of winning!Deadline: May 1st, 24:00. Longbridge reserves the right to interpret these terms.

Seagate Reported—Who Rules AI Storage? 

Western Digital's stock fell 8% in after-hours trading despite reporting strong earnings, with revenue of $3.3 billion and adjusted earnings of $2.72 per share, both exceeding expectations. This decline follows a significant one-year stock rally, with Western Digital up 900% and Sandisk up 3,300%. CEO Irving Tan announced a 20% dividend increase and provided a positive revenue outlook for the next quarter. Analysts noted a favorable pricing environment due to high demand for memory products.

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BANK OF AMERICA CORPORATION DEP SHS REP 1/1000TH INT NON CUM PFD QQ

BANK OF AMERICA CORPORATION DEP SHS REP 1/1200TH PRF SERIES '5'

BANK OF AMERICA CORPORATION 7.25% NON-CUM PERP CONV PFD SER L

BANK OF AMERICA CORPORATION 5.875%NON CUM DEP SHS REP1/1000TH SER HH

BANK OF AMERICA CORPORATION DEP SHS REP 1/1200TH PRF SERIES '2'

BANK OF AMERICA CORPORATION 5% DEP SHS REPR 1/1000TH NON CUM PFD LL

BANK OF AMERICA CORPORATION DEP SHARES REP 1/1000TH PERP PFD SER 'E'

BANK OF AMERICA CORPORATION INCOME CAPITAL OBLIG NTS DUE 15/12/2066

BANK OF AMERICA CORPORATION 4.375% DP SH RP 1/1000TH IN NON CU PF NN

BANK OF AMERICA CORPORATION DEP SH REP 1/1200TH PRF SER 1 USD25

BANK OF AMERICA CORPORATION 5.375%DEP SHS REP 1/1000TH NON CUM SR KK

BANK OF AMERICA CORPORATION 6%NON CUM DEP SHS EACH REP 1/1000 SER GG

BANK OF AMERICA CORPORATION DEP SHS REP 1/1200 PFD SER 4 USD25

BANK OF AMERICA CORPORATION DEP SHS REP 1/1000TH NON CUM PFD SER SS

BANK OF AMERICA CORPORATION 4.125%DEP SH REP 1/1000 PFD SER PP USD25

Bank of America Corp

The memory trade is faltering as Western Digital's stock slides in the face of earnings beat