Western Digital (WDC) is scheduled to report its first-quarter 2027 financial results after the market closes Thursday.
Analysts expect the company to post earnings of $4.08 to $4.11 per share, up roughly 130% year over year, while revenue is expected to total $4.14 billion to $4.16 billion, up about 47% year over year.
Western Digital makes high-capacity hard drives used by hyperscalers, cloud providers and other enterprise customers to store large amounts of data.
Investors are seeking clarity on potential capacity expansion by competitors such as Toshiba and how component inflation or limited availability of DRAM and controllers could affect future profitability.
Western Digital and rival Seagate Technology (STX) shares sold off earlier this month after reports that Toshiba planned a major expansion of hard-drive production capacity.
Wall Street is concerned that additional HDD supply could eventually narrow the gap between customer demand and the drives available to ship, putting pressure on pricing and profitability.