Argus has raised its price objective on Western Digital Corp. to $300.00 from $180.00 while maintaining a Buy recommendation on the storage and memory company.
The analyst action follows Western Digital's fiscal second-quarter 2026 report, which delivered results that exceeded consensus on revenue and non-GAAP profitability. Nonetheless, the company's shares dropped about 10% on January 30 amid a broader market sell-off.
Quarterly results and company adjustments
For fiscal 2Q26 Western Digital reported revenue of $3.02 billion, a 25% increase year-over-year, with the company’s financial results presented excluding its flash business. On an adjusted basis, non-GAAP earnings per share were $2.13, up 52% from a restated $1.40 in fiscal 2Q25.
The company also reported figures described elsewhere in its disclosure that showed earnings per share of $2.13 versus analyst expectations of $1.91, and revenue of $3.1 billion compared with a forecast of $2.92 billion. These reported beats and the company’s forward guidance contributed to Argus’ decision to lift its target while keeping a Buy stance.
Guidance and market reaction
Argus noted that the stock declined after the earnings release despite Western Digital providing fiscal 3Q26 guidance that exceeded pre-reporting consensus and indicating continued strong double-digit sales and EPS growth. The company's shares moved lower on January 30 as part of a wider market downturn, even though the quarterly performance and outlook were positive.
Share repurchase program
In conjunction with the results, Western Digital's Board of Directors authorized an additional $4 billion for its share repurchase program, effective immediately. That new authorization supplements roughly $484 million that remained under the prior repurchase plan. The company said repurchases may be executed on the open market or through privately negotiated transactions.
These actions - the strong quarterly beats, raised analyst target and the expanded repurchase authorization - were presented by the company as steps to support shareholder value. Market participants reacted with volatility following the report, reflecting a disconnect between the company's operating results and near-term share price movement during a broader market pullback.