In Q3 2026, Western Digital Corporation (NASDAQ:WDC) delivered a non-GAAP gross margin of 50.5%, an expansion of 1,040 basis points year-over-year. This marks the first time in corporate history that gross margins have cleared the 50% threshold. Tight industry cost control and supply shortages have led to a demand curve. Average HDD prices have spiked dramatically over the trailing months, prompting major enterprise cloud providers to begin signing long-term 5-year supply contracts to secure capacity. The p ...