Western Digital Corporation (WDC) saw its stock surge 13.90% in pre-market trading on Friday, following the release of its fiscal first quarter 2026 financial results that significantly exceeded analyst expectations. The data storage giant reported robust earnings growth, increased its dividend, and provided an optimistic outlook, driving investor enthusiasm amid growing demand for AI and cloud storage solutions.

For Q1 2026, Western Digital reported earnings per share of $1.78, surpassing the analyst consensus estimate of $1.58 by 12.7%. This represents a substantial 137.3% increase from the $0.75 per share reported in the same period last year. The company's quarterly revenue reached $2.82 billion, beating analyst estimates of $2.73 billion by 3.4% and marking a remarkable 27.4% year-over-year increase. In a show of confidence, Western Digital also announced a 25% increase in its quarterly cash dividend to $0.125 per share.

CEO Irving Tan attributed the strong performance to the growing demand for data storage in the cloud and AI sectors, stating, "Western Digital continues to execute well in a strong demand environment driven by growth of data storage in the cloud." The company's outlook for the second quarter was equally impressive, with projected revenue between $2.8 billion and $3 billion, and adjusted earnings per share between $1.73 and $2.03, both exceeding analyst expectations. This positive forecast, coupled with secured purchase orders from top customers extending through 2026, suggests sustained growth potential for Western Digital in the rapidly expanding AI and cloud storage markets.