Western Digital Corporation announced the sale of a $3.17 billion stake in SanDisk, divesting 5.8 million shares at $545 each.
The transaction is part of a broader effort to lower the company’s net debt, which stood at $2.7 billion against total debt of $4.7 billion at the end of Q2 FY2026.
The sale follows the February 21 2025 spin‑off of SanDisk, after which Western Digital retained a minority stake during a one‑year transition. The divestiture leaves the company with roughly 1.7 million SanDisk shares, valued near $1 billion.
Western Digital’s Q2 FY2026 results showed revenue of $3.02 billion and non‑GAAP diluted EPS of $2.13, up from $2.61 billion and $1.66 in Q4 FY2025. The cloud segment generated $2.7 billion (89% of total), while client and consumer segments contributed $176 million (6%) and $168 million (5%) respectively.
Investors viewed the debt‑reduction move favorably, while SanDisk investors noted dilution concerns from the secondary offering.
CEO Irving Tan has emphasized the company’s confidence in its long‑term cash‑generating capabilities, and CFO Kris Sennesael highlighted strong revenue growth and improved profitability driven by data‑center demand and high‑capacity drive adoption.
The proceeds will strengthen Western Digital’s balance sheet, enhance financial flexibility, and support future investments in high‑capacity HDDs for AI data centers, while the company plans to eventually dispose of its remaining SanDisk shares.
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