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What's Supporting Western Digital's Gross Margin Momentum?
Western Digital (WDC) has shown significant gross margin improvement in the first two quarters of fiscal 2026, driven by a shift to higher-capacity drives, rigorous cost management, and strong execution on pricing. The company expects continued momentum in the fiscal third quarter, projecting a non-GAAP gross margin of 47-48% and a 40% year-over-year revenue increase. Competitors like Seagate Technology and Pure Storage are also experiencing margin expansion through similar strategies.