Western Digital (Nasdaq: WDC) looks like the modest value pick on the available October 7, 2026 forward-earnings snapshot; Seagate Technology (Nasdaq: STX) is a strong alternative with comparable near-term revenue guidance. WDC’s forward P/E was 20.43, versus 22.52 for STX. That is a dated market snapshot, not proof that WDC is undervalued or will outperform. Both companies reported more than $12 billion in FY2026 revenue and forecast about $4.1 billion for Q1 FY2027.
What these companies sell—and why older comparisons can mislead
Both companies supply hard disk drives (HDDs) used in mass-capacity storage, including data-center applications. Western Digital’s current business is HDD-focused: it completed the separation of its Flash business into Sandisk on February 21, 2025. That change matters when comparing current results with older Western Digital figures that included Flash. Seagate describes its business as mass-capacity data storage, serving data-center and Edge/IoT markets. Their FY2026 reports discuss demand for high-capacity nearline drives, and Seagate specifically attributed stronger demand in the year to data centers and increasing AI-related applications. Those are company disclosures, not independent forecasts of future demand. Western Digital’s FY2026 annual report and Seagate’s FY2026 annual report provide the business and risk details.
As an Amazon Associate I earn from qualifying purchases.
How the FY2026 numbers compare
Both companies reported strong revenue and cash generation, but not every figure is directly comparable. In particular, the margin figures below cover different periods; they should not be read as a matched-quarter contest.
| Measure | Western Digital (WDC) | Seagate (STX) |
|---|---|---|
| FY2026 revenue | $12.919 billion | $12.195 billion |
| FY2026 revenue growth | From $9.520 billion in FY2025 | 34% |
| Reported gross margin | 54.1% GAAP, Q4 FY2026 | 45.6% GAAP, FY2026 |
| Reported operating margin | 37.3% GAAP, Q4 FY2026 | 33.6% GAAP, FY2026 |
| FY2026 free cash flow | $3.511 billion | $3.105 billion |
| Q1 FY2027 revenue outlook | $4.1 billion midpoint | $4.1 billion, plus or minus $100 million |
| Q1 FY2027 non-GAAP EPS outlook | $4.00 midpoint | $7.30, plus or minus $0.20 |
| Forward P/E at October 7, 2026 close | 20.43 | 22.52 |
Revenue, margin, and guidance figures come from the companies’ FY2026 earnings release and Seagate’s FY2026 earnings release. The companies define free cash flow as a non-GAAP measure, so their figures are not necessarily calculated identically. The forward P/E figures are third-party snapshots from WDC statistics and STX statistics; share prices and earnings estimates can move, changing the multiples.
#1 Best Overall
- Easily store and access 2TB to content on the go with the Seagate Portable Drive, a USB external hard drive
- Designed to work with Windows or Mac computers, this external hard drive makes backup a snap just drag and drop
- To get set up, connect the portable hard drive to a computer for automatic recognition no software required
- This USB drive provides plug and play simplicity with the included 18 inch USB 3.0 cable
- The available storage capacity may vary.
Revenue and profitability
Western Digital reported higher FY2026 revenue, while Seagate reported 34% growth. Western Digital’s FY2025-to-FY2026 increase was about 35.7%, calculated from the reported $9.520 billion and $12.919 billion figures. Because Western Digital’s business scope changed after its Flash separation, that growth rate should not be treated as a like-for-like comparison with its older combined business.
The reported gross and operating margins favor Western Digital numerically, but its figures are for Q4 FY2026 while Seagate’s are full-year FY2026. A quarter can differ from a full year because of product mix, pricing, production, and timing. The figures establish that both were profitable at the reported levels; they do not establish a clean, same-period margin advantage.
Rank #2
- Easily store and access 5TB of content on the go with the Seagate portable drive, a USB external hard Drive
- Designed to work with Windows or Mac computers, this external hard drive makes backup a snap just drag and drop
- To get set up, connect the portable hard drive to a computer for automatic recognition software required
- This USB drive provides plug and play simplicity with the included 18 inch USB 3.0 cable
- The available storage capacity may vary.
Cash generation
Western Digital reported $3.511 billion in FY2026 free cash flow, and Seagate reported $3.105 billion. Both totals are substantial, but compare them with care because free cash flow is company-defined and non-GAAP. Neither figure alone says how much cash will be returned to shareholders or how either stock is valued.
What the next-quarter outlook says
The companies’ Q1 FY2027 revenue outlooks are close: Western Digital gave a $4.1 billion midpoint, while Seagate’s range centers on $4.1 billion. The outlooks are guidance, not results already achieved.
Rank #3
- Easily store and access 1TB to content on the go with the Seagate Portable Drive, a USB external hard drive.Specific uses: Personal
- Designed to work with Windows or Mac computers, this external hard drive makes backup a snap just drag and drop. Reformatting may be required for Mac
- To get set up, connect the portable hard drive to a computer for automatic recognition no software required
- This USB drive provides plug and play simplicity with the included 18 inch USB 3.0 cable
- The available storage capacity may vary.
Western Digital forecast non-GAAP gross margin of 55.5% and non-GAAP EPS of $4.00 at the midpoint of its ranges. Seagate forecast non-GAAP diluted EPS of $7.30, plus or minus $0.20. Do not compare those per-share amounts as if they measured the same earnings power: share counts and non-GAAP adjustments differ. For context, Seagate CEO Dave Mosley characterized FY2026 as a year of record profitability and $3.1 billion in free cash flow; that is management’s description of its results, not a promise about future performance.
Why WDC looks cheaper—and what that does not prove
At the October 7, 2026 close, WDC’s forward P/E of 20.43 was lower than STX’s 22.52. On that one valuation measure, WDC is the less expensive stock relative to forecast earnings. The gap is modest, and forward P/E depends on both the share price and estimates of future earnings. A change in either can alter the comparison quickly.
Rank #4
- Easily store and access 4TB of content on the go with the Seagate Portable Drive, a USB external hard drive.Specific uses: Personal
- Designed to work with Windows or Mac computers, this external hard drive makes backup a snap just drag and drop
- To get set up, connect the portable hard drive to a computer for automatic recognition no software required
- This USB drive provides plug and play simplicity with the included 18 inch USB 3.0 cable
- The available storage capacity may vary.
The snapshot does not establish intrinsic value, which stock will produce better returns, or whether either security fits a particular investor’s needs. A lower multiple can be attractive if earnings estimates hold; it can also reflect greater perceived risk or uncertainty. The case for WDC weakens if its expected earnings fall enough to erase the valuation gap. STX may prove the better buy if its earnings and cash generation hold up better than the market expects and justify its higher multiple.
Recommended Free Tools
Risks that matter to both stocks
- Customer concentration at Western Digital: its top ten customers accounted for 73% of FY2026 revenue. Its three largest customers contributed 16%, 15%, and 13%, respectively. Losing or seeing reduced purchases from a large customer could materially affect results.
- Cyclical demand and spending changes: both companies depend on customers’ storage needs and purchasing schedules. Strong data-center or AI-related demand does not rule out a slowdown, delayed orders, or changes in customer spending.
- Competition and execution: pricing, product mix, production, and the ability to deliver products on schedule can affect margins and earnings. Company guidance is subject to business and operational uncertainties described in the annual reports.
- Valuation sensitivity: a stock can fall even when its business remains profitable if earnings expectations decline or investors assign it a lower multiple.
Which stock may suit which investment case?
WDC: a tentative value case
WDC is the more defensible choice if the priority is the lower forward P/E in this dated comparison, while accepting its customer concentration and the limits of comparing its post-separation business with older results. Its FY2026 reported revenue and free cash flow were higher than Seagate’s, but the margin and growth comparisons need period and scope context.
Best Value
- [Upgraded Version] - This external hard drive features a mirrored logo stripe combined with a striped anti-slip design, and the rounded corners of the casing make it easier to grip. The stripes also have a heat dissipation function, ensuring stable and fast data transfer.
- 【Ultra-thin and quiet】 - The motherboard adopts JMicron 578 noise-free solution, giving you a quiet working environment. Lightweight and portable size designed to fit in your pocket for easy portability.
- 【Ultra-Fast Data Transfers】 - Pairing this external hard drive with JMicron 578 solution USB 3.0 and USB 2.0 interfaces enables blazing-fast data transfer. It boasts theoretical read speeds of up to 125MB/s and write speeds of up to 103MB/s.
- 【Plug and Play】 - With no software to install, just plug it in and the drive is ready to use.The hard disk chip is wrapped with an aluminum anti-interference layer to increase heat dissipation and protect data.
- 【What You Get】 - 1 x Portable Hard Drive, 1 x USB 3.0 Cable, 1 x User Manual, Gift-type shell packaging ,Three-year manufacturer's warranty and free technical support services.
STX: an operating alternative
STX is a reasonable alternative for investors who prefer its business outlook and are comfortable paying a somewhat higher forward multiple on the October 7 snapshot. Its FY2026 revenue growth was 34%, its free cash flow was $3.105 billion, and its Q1 FY2027 revenue guidance is centered on the same $4.1 billion as WDC’s. Those figures do not remove its exposure to cyclical storage demand or establish that its higher multiple will be rewarded.
On balance, WDC edges ahead as the tentative value pick on the available snapshot, not as a guaranteed winner. Revisit the comparison when new results or market prices change the earnings outlook, and assess the two businesses using aligned reporting periods rather than relying on one quarter’s margin or a single valuation multiple.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
Free tools Windows power users keep installed
One-click scans. No signup required.
