Overview
- CEO Irving Tan told investors the company is “pretty much sold out” for calendar 2026 hard-drive production.
- Western Digital holds firm purchase orders with its top seven customers and has long-term agreements covering some capacity in 2027 and 2028.
- Cloud customers contribute about 89% of revenue versus roughly 5% from consumer HDDs, underscoring an enterprise-first allocation.
- AI-driven data center buildouts are fueling exabyte-scale HDD demand, with market reports noting prices at around two-year highs and limited relief near term.
- Backblaze’s latest survey reports a 1.36% overall HDD failure rate for 2025, down from 1.55% in 2024, suggesting improving reliability despite tight supply.