Western Digital's Q1 fiscal results and Q2 guidance both beat expectations, yet shares still fell over 6% after hours

Odaily reports: Western Digital has released its financial results for the first quarter of fiscal year 2027. The company reported revenue of $4.381 billion, up 55% year-over-year, beating analysts' expectations of $4.14 billion; non-GAAP earnings per share came in at $4.64, up 161% year-over-year, above the $4.11 expected by analysts surveyed by FactSet.

Looking ahead to the second fiscal quarter, Western Digital expects adjusted earnings per share of $5.60 to $6.00 and revenue of $5 billion to $5.2 billion, both above prior market expectations of $4.84 per share and $4.57 billion in revenue.

Despite both the results and guidance beating expectations, storage and AI-related stocks came under broad pressure, as the market remains concerned about whether large-scale capital expenditure can generate effective returns in the short term. After the earnings release, Western Digital's share price briefly rose before quickly pulling back, with after-hours losses reaching 6.3% as of press time.