Overview
- CEO Irving Tan said the company is “pretty much sold out” of hard-drive production for calendar 2026 after a surge of hyperscale demand.
- Western Digital has firm purchase orders with its top seven customers and long-term agreements extending to 2027 for two clients and to 2028 for one.
- The business mix is dominated by cloud, which generates about 89% of revenue, compared with roughly 5% from consumers.
- Retail buyers face constrained availability and higher costs, with market reports citing roughly 45–50% hard-drive price increases since September 2025.
- Some drives remain available at retailers, but AI data-center demand is expected to keep consumer supply tight, paralleling pressures seen in RAM and SSD markets.