• UBS upgraded Western Digital Corporation (NASDAQ:WDC) to a "Buy" rating, increasing the price target from $230 to $285.
• The company reported a 25% increase in revenue, reaching $3 billion in the second quarter of 2026.
• Western Digital's gross margin improved significantly to 46.1%, driven by a strategic shift towards higher capacity drives and effective cost management.

Western Digital Corporation, trading as NASDAQ:WDC, is a prominent player in the data storage industry. The company specializes in manufacturing and selling data storage devices, including hard drives and solid-state drives. Western Digital competes with other major companies like Seagate Technology and Toshiba in the storage solutions market.

On January 30, 2026, UBS upgraded Western Digital to a "Buy" rating, with the stock priced at $278.41. UBS also increased the price target from $230 to $285. This upgrade comes on the heels of Western Digital's strong financial performance in the second quarter of 2026, where revenue reached $3 billion, a 25% increase from the previous year.

Western Digital's earnings per share (EPS) stood at $2.13, exceeding the high end of their guidance range. The company delivered 215 exabytes, reflecting a 22% year-over-year growth. This growth is driven by strong demand for its nearline drives, with over 3.5 million units of the latest generation EPMR products shipped, indicating robust customer confidence.

The company's gross margin improved significantly to 46.1%, an increase of 770 basis points from the previous year. This improvement is due to a strategic shift towards higher capacity drives and effective cost management. Western Digital has also secured long-term agreements with major customers, enhancing visibility into future demand.

Western Digital is advancing its Hammer and EPMR roadmaps and has begun qualifying next-generation products, positioning itself for continued growth. The stock, currently priced at $278.41, has seen a decrease of 0.46% today, with a trading volume of 15.21 million shares. The stock's highest price over the past year was $285.42, while the lowest was $28.83.