Western Digital Corporation (NASDAQ: WDC), the renowned data storage products company based in San Jose, California, is slated to release its financial results for the fiscal second quarter following the market close on Thursday, January 29. Market consensus forecasts an earnings per share (EPS) figure of $1.93, marking an increase from $1.77 reported during the same quarter in the previous year. In contrast, revenue expectations are notably lower, with a consensus estimate of $2.94 billion compared to $4.29 billion recorded a year prior, signaling a reduction in sales volume or pricing across its product portfolio.
In addition to the earnings announcement, Western Digital has publicized its Innovation Day event, scheduled for February 3 in New York City. This event is anticipated to highlight advanced developments and initiatives within the company, potentially impacting investor sentiment ahead of or following the earnings disclosure.
Investor interest in Western Digital intensified significantly in the lead-up to the earnings release, with shares appreciating 10.7% to close at $279.70 on the trading session preceding the announcement. This sharp rise underscores heightened market expectations or rapidly evolving narratives around the company’s performance and prospects entering the new fiscal period.
Analytic scrutiny remains focused on Western Digital's H2 dynamics, and a key indicator lies in how closely recent analyst adjustments track the company’s growth narrative. Several industry analysts with strong records of accuracy have recently revisited their stances on the stock, adjusting price targets and reiterating their ratings based on updated projections and sector insights.
Mizuho's Vijay Rakesh, an analyst with an 82% accuracy record, sustained an Outperform rating on WDC shares while elevating the price target from $240 to $265 as of January 27, 2026. Similarly, Morgan Stanley's Erik Woodring, who registers a 79% accuracy rate, maintained an Overweight rating and lifted his target price from $228 to $260 on January 22, 2026.
On the other hand, UBS's Timothy Arcuri, with an 84% historical accuracy, held a Neutral rating but significantly revised the price target upwards from $145 to $230 as of January 20, 2026, indicating tempered optimism. Citigroup analyst Asiya Merchant, known for an 89% accuracy rate, reinforced a Buy rating while increasing the target price sharply from $200 to $280 on the same date. Likewise, Bank of America Securities' Wamsi Mohan, boasting an 82% accuracy rating, echoed this bullish sentiment, maintaining a Buy rating and raising the price objective from $197 to $257.
The varied price target adjustments reflect a consensus of upward recalibration in Western Digital's valuation metrics, even as the revenue estimates suggest continuing headwinds in sales volume or pricing. Analysts appear to assign value to anticipated operational or strategic developments, potentially highlighted during the upcoming Innovation Day. They seem to weigh the company’s position in the storage industry, competitive dynamics, and possible efficiency gains that may drive improved profitability measured by the EPS growth expectations.
Market participants considering WDC shares should evaluate these analyst insights alongside the company’s forthcoming financial disclosures, especially noting the differential movement between top-line revenue and bottom-line earnings forecasts. While EPS growth signals margin improvement or cost control success, revenue contraction hints at demand softness or market challenges that could influence future performance and strategic direction.
For investors seeking the most current professional perspectives, Benzinga's platform allows sorting and examination of analyst ratings, providing the ability to filter by ticker, firm, or rating date to track dynamic consensus changes. These tools facilitate informed decision-making based on the latest expert evaluations and target price revisions.
Overall, Western Digital's upcoming earnings report and subsequent Innovation Day event constitute significant catalysts that may redefine analyst and investor sentiment. The stock's recent bullish movement preceding these milestones, together with several leading analysts' upgraded targets, underscores a cautiously optimistic outlook while underscoring fundamental uncertainties in revenue performance.