Western Digital shares tumbled 11.18% over the past 24 hours, as the data-storage giant’s fiscal fourth-quarter results and guidance, despite beating analyst estimates, failed to satisfy investors’ elevated expectations fueled by the artificial-intelligence boom. The stock had already surrendered ground during regular trading and then accelerated its decline in post-market action after the earnings release.

The company reported adjusted earnings of $3.56 per share on revenue of $3.75 billion, both comfortably above Wall Street forecasts. However, the first-quarter outlook—calling for revenue of roughly $4.1 billion and adjusted EPS of $4.00 at the midpoint, only modestly ahead of consensus—was not enough to justify a valuation that had more than tripled year-to-date. With the stock up around 200% in 2026 ahead of the print, investors had priced in a much stronger beat, and the relatively in-line guidance triggered aggressive profit-taking.

The after-hours selloff was compounded by a broader rotation out of high-flying AI storage names, as traders locked in gains after a massive run. Western Digital’s guidance also paled in comparison to the more impressive outlook delivered by rival Seagate Technology the prior week, further highlighting that the market’s bar for AI-driven storage plays has been set exceptionally high.