Zacks cuts Western Digital stock to Hold rating

Published on 10/13/2026 at 11:31 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Fiscal revenue reached USD 12.90 billion, up 36.00 percent. Western Digital stock costs EUR 332.80 on October 13, 2026 versus EUR 346.40.

Key points in brief

Zacks Research cut Western Digital from Strong Buy to Hold on October 7, 2026.
Fiscal 2026 revenue reached USD 12.90 billion, up 36.00 percent year over year.
Western Digital stock was trading at EUR 332.80 at Lang & Schwarz on October 13, 2026, down 3.93 percent versus the Xetra close of EUR 346.40 on October 12, 2026.
S&P Global Ratings revised its Western Digital outlook to positive and affirmed the BBB- issuer credit rating on September 24, 2026.

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Western Digital stock (ISIN US9581021055) was trading at EUR 332.80 at Lang & Schwarz on October 13, 2026 at 11:30 a.m. CEST, down 3.93 percent versus the Xetra close of EUR 346.40 on October 12, 2026. On October 7, 2026, MarketBeat reported that Zacks Research cut Western Digital from Strong Buy to Hold.

Three events reshape the picture

On August 5, 2026, Western Digital reported fiscal fourth-quarter revenue of USD 3.75 billion, up 44.00 percent year over year, while earnings per share reached USD 3.56, up 109.00 percent. The figures came from the company's earnings call transcript published by Yahoo Finance.

On September 24, 2026, S&P Global Ratings revised Western Digital's outlook to positive from stable and affirmed its BBB- issuer credit rating. Its fiscal 2026 assessment showed revenue of USD 12.90 billion and adjusted EBITDA margin of 39.50 percent.

On October 7, 2026, the Zacks downgrade became the latest dated event in this sequence. MarketBeat also reported a consensus Moderate Buy rating and an average price target of USD 534.56, but the target is a U.S. dollar measure and is not combined with the euro quotation.

What does the downgrade mean for margins?

The rating change puts execution against the next operating targets at the center of the debate. Western Digital guided fiscal first-quarter 2027 revenue to USD 4.10 billion, plus or minus USD 100.00 million, with gross margin of 55.00 percent to 56.00 percent, according to the Yahoo Finance transcript.

S&P Global Ratings expects adjusted EBITDA margin to reach 50.60 percent in fiscal 2027, compared with 39.50 percent in fiscal 2026. That 11.10 percentage-point expansion would depend on hard-disk-drive pricing, higher-capacity products and continued cloud demand.

Next date and trading context

The next earnings date is October 22, 2026, according to Simply Wall St. The upcoming report will test whether the USD 4.10 billion fiscal first-quarter revenue outlook is translating into the margin improvement embedded in the current forecasts.

Western Digital was trading at EUR 332.80 at Lang & Schwarz on October 13, 2026 at 11:30 a.m. CEST, down 3.93 percent versus the Xetra close of EUR 346.40 on October 12, 2026. The further course of trading is shown by the continuously updated real-time quote of Western Digital stock.