Western Digital's fiscal first-quarter 2027 revenue rose 55% year over year to $4.38 billion, above management's $4.0–4.2 billion guidance range, while non-GAAP EPS climbed 161% and the quarterly dividend rose 17% to $0.175 per share. Average price per terabyte increased 28%, adjusted gross margin reached 58.1%, and fiscal Q2 guidance calls for 66%–72% revenue growth, around $5.1 billion at the midpoint. Shares, at roughly $353, are about 53% below their June 18 record close of about $746, as investors worry that hard drive pricing could turn. Management said demand visibility extends through 2030 and 2031 for its top seven customers, while the CFO said price-per-terabyte growth will likely slow eventually. The author judges that much of the risk of a pricing slowdown is already reflected in the share price, says he would consider a small position, and wants to see price per terabyte keep rising into 2027.
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