Western Digital (WDC) shares tumbled 9.93% in after-hours trading on Wednesday, even after the data-storage company reported fiscal fourth-quarter results that surpassed Wall Street expectations on both the top and bottom lines.

For the quarter ended July 3, the company posted non-GAAP earnings of $3.56 per diluted share, well above the $3.31 analyst consensus, while revenue climbed 44% year-over-year to $3.75 billion, beating the $3.70 billion estimate. Looking ahead, Western Digital guided for fiscal first-quarter non-GAAP earnings of $4.00 per share, plus or minus $0.15, and revenue of $4.1 billion, plus or minus $100 million—both midpoints exceeding analyst projections of $3.84 and $4.06 billion, respectively.

Despite the strong headline numbers, the stock sold off sharply as investors appeared to lock in profits following a significant run-up, while broader concerns about a potential slowdown in the storage cycle and NAND flash pricing likely tempered enthusiasm. The after-hours decline reflects a market that had already priced in robust results, leaving the earnings beat insufficient to satisfy elevated expectations.