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Western Digital Secures Long-Term Purchase Orders and Reports Stable Pricing
Tuesday, December 2, 2025 at 11:07 PM
Western Digital has received firm purchase orders from its five largest customers covering all of calendar year 2026, and from one of those customers for all of 2027. The company, which focuses 90% of its business on a few large data center customers, reports a stable pricing environment, anticipating flattish to low single-digit annual price increases on a dollar-per-terabyte basis.
Context
Western Digital has secured firm purchase orders from five of its largest hyperscale customers covering all of calendar year 2026, with one of those customers committed through 2027. This provides significant, multi-year demand visibility, a crucial development given that data center clients now account for approximately 90% of the company's business. The long-term commitments underscore the critical nature of storage capacity for AI and cloud workloads.
This backlog is coupled with a stable pricing environment, which management describes as "flattish to slightly up" in the low single digits year-over-year on a dollar-per-terabyte basis. Western Digital expects this price stability to hold, supported by the new purchase orders and long-term agreements. For investors, this combination of locked-in volume and predictable pricing de-risks future revenue and improves margin forecasting. For data center operators like Digital Realty, it signals a more predictable cost environment for a key hardware component.
Sources (11)
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