What's Supporting Western Digital's Gross Margin Momentum?

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Western Digital Corporation’s gross margin performance has significantly improved in the first two quarters of fiscal 2026, driven by a shift to higher-capacity drives and stringent cost management. The company surpassed its own guidance in Q2 FY26, reporting a 46.1% gross margin, and anticipates continued momentum into Q3 with expected non-GAAP gross margins between 47-48%. Competitors like Seagate Technology and Pure Storage are also experiencing margin expansion due to similar strategies and strong product adoption.

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