Western Digital Reports Strong Q2 Earnings on AI-Driven Demand

Executives highlight accelerating AI adoption and customer demand for higher-capacity storage drives

Jan. 29, 2026 at 8:07pm

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Western Digital (NASDAQ:WDC) reported fiscal second-quarter 2026 results that management said reflected strong demand tied to AI-driven data growth and continued customer adoption of higher-capacity nearline hard drives. Executives emphasized that AI training and inference workloads are driving rapid expansion in data creation, fueling demand for higher-density storage and supporting a pricing and margin environment the company described as stable to improving.

Why it matters

Western Digital's results underscore the growing importance of data storage in the age of AI, as the proliferation of AI-powered applications and workloads drives surging demand for high-capacity, high-performance storage solutions. The company's focus on advancing its HAMR and ePMR technologies to enable even denser drives positions it well to capitalize on this trend.

The details

CEO Irving Tan highlighted accelerating adoption of generative AI, 'agentic AI,' and AI inference deployments as key drivers of Western Digital's business. The company shipped over 3.5 million units of its latest-generation ePMR products during the quarter, delivering up to 26TB CMR and 32TB UltraSMR capacities. Western Digital has also begun qualifying HAMR drives with one hyperscale customer and next-generation ePMR drives with another. To support its HAMR roadmap, the company recently acquired IP, assets, and talent to help develop internal laser capabilities.

  • In the second quarter of fiscal 2026, Western Digital delivered 215 exabytes (EB) of storage, up 22% year-over-year.
  • The company has firm purchase orders with its top seven customers through calendar year 2026 and longer-term agreements with three of its top five customers through 2027 and 2028.

The players

Western Digital

A global data storage company that designs, manufactures and sells a broad range of storage devices and systems for personal, enterprise and cloud applications.

Irving Tan

Chief Executive Officer of Western Digital.

Kris Sennesael

Chief Financial Officer of Western Digital.

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