Western Digital has sold every hard disk drive it plans to make in 2026. That’s not a flex, it’s just what happens when the world’s largest cloud companies need somewhere to park all the data their AI models are generating.
The storage giant has secured multiyear commercial agreements and firm purchase orders with leading hyperscalers for its high-capacity HDDs, with several top customers extending commitments into 2027 and 2028. Cloud revenues now account for 89% of the company’s total revenue.
The numbers behind the demand
Western Digital’s fiscal Q2 2026 results tell the story clearly. Revenue hit $3.02 billion, a 25% jump year-over-year. The cloud segment alone pulled in $2.7 billion, representing a 28% increase from the same period last year.
Non-GAAP gross margins reached record territory at roughly 46%.
