Western Digital reported strong fiscal third-quarter 2026 results and guided to even stronger fourth-quarter revenues, citing resilient AI infrastructure demand, expanding non-GAAP gross margins, and robust enterprise HDD sales into cloud and hyperscale data centers. The company has new long-term commercial agreements through 2028, paired with its high-capacity UltraSMR and HAMR roadmap. Western Digital's narrative projects $27.9 billion revenue and $10.7 billion earnings by 2029, requiring 33.3% yearly revenue growth and about a $4.4 billion earnings increase from $6.3 billion today. Some analysts assumed revenue of about US$17.0 billion and earnings of roughly US$4.4 billion by 2029, flagging HDD dependence as a key risk. The biggest risk remains Western Digital’s heavy reliance on a handful of hyperscale buyers, and this news does not materially reduce that exposure.