Western Digital (WDC) Stock Price Drops As Q1 Results Spur Profit Quality Concerns

Western Digital walked into its Q1 FY2027 report wearing a value label, with a P/E near 13x and a stock that had fallen about 27% over the past month. The quarter then landed with a thud in the market, the share price slipping almost 3% to about $344 in the first full session after the release, even as the headline print showed US$4.4b in revenue and US$4.86 in basic EPS. The real story is profit quality. Trailing net income sits near US$9.9b, but a high share of non cash earnings now hangs...