Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Western Digital Corporation reported its third quarter fiscal 2026 results with notable sequential and year-over-year revenue growth driven largely by strong demand across cloud, consumer, and client segments.</li><li>The company generated $3.3 billion in revenue, representing a 45% increase from the prior year, which exceeded the high end of its guidance range.</li><li>Earnings per share nearly doubled to $2.72, supported by improved gross margins surpassing 50%, driven by a favorable product mix shift toward higher capacity drives, successful pricing strategies, and operational efficiencies.</li></ul>

Western Digital Corporation reported its third quarter fiscal 2026 results with notable sequential and year-over-year revenue growth driven largely by strong demand across cloud, consumer, and client segments.The company generated $3.3 billion in revenue, representing a 45% increase from the prior year, which exceeded the high end of its guidance range.Earnings per share nearly doubled to $2.72, supported by improved gross margins surpassing 50%, driven by a favorable product mix shift toward higher capacity drives, successful pricing strategies, and operational efficiencies.

Western Digital: The 25% CAGR In Storage Demand Cannot Override The Execution Constraint Behind Underperform!

<ul><li>Western Digital Corporation delivered a strong quarter, with revenue of $3 billion rising 25% year over year and earnings per share of $2.13 exceeding the high end of guidance.</li><li>The result was driven primarily by strong nearline hard drive demand from cloud customers, with cloud revenue representing 89% of total revenue and increasing 28% year over year.</li><li>Exabyte shipments reached 215 exabytes, up 22%, supported by higher-capacity ePMR products and strong adoption of drives reaching up to 32 terabytes.</li></ul>

Western Digital Corporation delivered a strong quarter, with revenue of $3 billion rising 25% year over year and earnings per share of $2.13 exceeding the high end of guidance.The result was driven primarily by strong nearline hard drive demand from cloud customers, with cloud revenue representing 89% of total revenue and increasing 28% year over year.Exabyte shipments reached 215 exabytes, up 22%, supported by higher-capacity ePMR products and strong adoption of drives reaching up to 32 terabytes.

Western Digital: 89% Cloud Concentration Is The Real Risk Not The Margin Story!

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Event-Driven

<ul><li>WDC beat consensus on the top and bottom line and guided Q4 ahead of expectations.</li><li>Revenue was $3.3B (+45% y/y), gross margin expanded to 50.5% (+1,040 bps y/y), and EPS hit $2.72, nearly double last year.</li><li>Q4 guide: revenue of $3.65B +/- $100MM (~40% y/y), gross margin of 51-52%, EPS of $3.25 +/- $0.15 — all above the Street.</li></ul>

WDC beat consensus on the top and bottom line and guided Q4 ahead of expectations.Revenue was $3.3B (+45% y/y), gross margin expanded to 50.5% (+1,040 bps y/y), and EPS hit $2.72, nearly double last year.Q4 guide: revenue of $3.65B +/- $100MM (~40% y/y), gross margin of 51-52%, EPS of $3.25 +/- $0.15 — all above the Street.

<ul><li>News flow was relatively quiet this week, but earnings season kicks off next week and things will pick up quickly.</li><li>Before we get into the regular update, one chart caught my eye that I want to flag.</li><li>Earnings growth is what drives markets over the long term, and the S&amp;P 500 is still seeing forward earnings estimates revised higher.</li></ul>

News flow was relatively quiet this week, but earnings season kicks off next week and things will pick up quickly.Before we get into the regular update, one chart caught my eye that I want to flag.Earnings growth is what drives markets over the long term, and the S&amp;P 500 is still seeing forward earnings estimates revised higher.

<ul><li>Western Digital has moved decisively to sell the bulk of its remaining Sandisk shares, offering approximately 5.8 million shares at $545 per share for total proceeds of roughly $3.17 billion.</li><li>The transaction comes nearly a year after the February 2025 spin-off and just days before a critical tax-related deadline, underscoring a carefully timed capital allocation decision rather than a reactionary exit.</li><li>Management has indicated that the sale will be executed via a debt-for-equity exchange with major financial institutions, with proceeds earmarked for debt reduction.</li></ul>

Western Digital has moved decisively to sell the bulk of its remaining Sandisk shares, offering approximately 5.8 million shares at $545 per share for total proceeds of roughly $3.17 billion.The transaction comes nearly a year after the February 2025 spin-off and just days before a critical tax-related deadline, underscoring a carefully timed capital allocation decision rather than a reactionary exit.Management has indicated that the sale will be executed via a debt-for-equity exchange with major financial institutions, with proceeds earmarked for debt reduction.

Western Digital Offloads Sandisk At Peak Valuations—Strategic Masterstroke Or Lost Upside?

United States

Western Digital Corporation is a global provider of solutions for the collection, storage, management, protection and use of digital content, including audio and video. The Company's products include hard drives, solid-state drives, and home entertainment and networking products.

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Western Digital (WDC US)

Western Digital: The 25% CAGR In Storage Demand Cannot Override The Execution Constraint Behind Underperform!

Western Digital Corporation reported its third quarter fiscal 2026 results with notable sequential and year-over-year revenue growth driven...

Baptista Research

Western Digital: 89% Cloud Concentration Is The Real Risk Not The Margin Story!

Western Digital Corporation delivered a strong quarter, with revenue of $3 billion rising 25% year over year and earnings per share of $2.13...

Baptista Research

Weekly Update (WDC, HOH.V, LBTYA, TXT)

WDC beat consensus on the top and bottom line and guided Q4 ahead of expectations. Revenue was $3.3B (+45% y/y), gross margin expanded to 50.5%...

Richard Howe

Weekly Update (WDC, IDT, TRAX)

News flow was relatively quiet this week, but earnings season kicks off next week and things will pick up quickly. Before we get into the regular...

Richard Howe

Western Digital Offloads Sandisk At Peak Valuations—Strategic Masterstroke Or Lost Upside?

Western Digital has moved decisively to sell the bulk of its remaining Sandisk shares, offering approximately 5.8 million shares at $545 per share...

Baptista Research

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