Western DigitalHAM:WDC 60 Gross Margin % is 50.22% as of Mar. 2026, which is 83% above its 10-year median of 27.40. GuruFocus rates HAM:WDC with a GF Score™ of 60/100 and a GF Value™ of €7.68. The stock has 2 warning signs investors should review. Among 2,454 Hardware companies, Western Digital ranks better than 83.37% on this metric.
The historical rank and industry rank for Western Digital's Gross Margin % or its related term are showing as below:
HAM:WDC'
s Gross Margin % Range Over the Past 10 Years
Min: 22.24 Med: 27.4 Max: 45.43
Current: 45.43
During the past 13 years, the highestGross Margin % of Western Digital was 45.43%. The lowest was 22.24%. And the median was 27.40%.
HAM:WDC's Gross Margin % is ranked better than 83.37% of 2454
companies
in the Hardware industry
Industry Median: 24.565
vs HAM:WDC: 45.43
Western Digital had a gross margin of 50.22% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Western Digital was 7.40% per year.
Western Digital (HAM:WDC) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Western Digital had a gross margin of 50.22% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Western Digital Gross Margin % Related Terms
Western Digital Gross Margin % Historical Data
* Premium members only.
The historical data trend for Western Digital's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HAM:WDC vs STX, ANET, SNDK: Gross Margin % Comparison
For the Computer Hardware subindustry, Western Digital's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Western Digital Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Western Digital's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Western Digital's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Western Digital (HAM:WDC) has a Gross Margin % of 50.22% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Western Digital and its competitors. This is 83% above median its historical median of 27.40. Over the past decade, Western Digital's Gross Margin % has ranged from 22.24 to 45.43. According to the industry distribution chart, Western Digital ranks #408 out of 2454 companies in the Hardware industry, placing it in the top 16.6%.
Is Western Digital's Gross Margin % too high?
Western Digital's current Gross Margin % of 50.22% is 83% above median its 10-year median of 27.40. Over the past 10 years, this metric has ranged from a low of 22.24 to a high of 45.43. The Hardware industry median Gross Margin % is 24.57. Western Digital's value of 50.22% is 104.4% above this industry median. Based on the distribution chart, Western Digital ranks #408 out of 2454 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Western Digital has a GF Score™ of 60/100, reflecting its overall financial health beyond just this single metric.
How does Western Digital's Gross Margin % compare to STX and ANET?
According to the Hardware industry distribution chart, Western Digital ranks #408 out of 2454 companies for Gross Margin %. This places Western Digital in the top 17% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.57. Western Digital's value of 50.22% is 104.4% above this benchmark. Historically, Western Digital's own Gross Margin % has ranged from 22.24 to 45.43 over the past decade. While the company's 10-year median is 27.40 vs. the industry median of 24.57, Western Digital has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Hardware company?
The median Gross Margin % among Hardware companies is 24.57, based on 2,454 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Western Digital's current Gross Margin % of 50.22% is 104.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Western Digital and its competitors. For the Hardware industry, the median Gross Margin % is 24.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Western Digital's current Gross Margin % is 50.22%, which is 83% above median its own 10-year median of 27.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Western Digital stock overvalued right now?
Western Digital (HAM:WDC) has a current Gross Margin % of 50.22%. The stock's GF Value™ is €7.68, compared to a current price of €52.14 — trading 579% above its estimated fair value. The current Gross Margin % is 50.22%, which is 83% above median its 10-year median of 27.40 and 104.4% above the Hardware industry median of 24.57. Western Digital's overall GF Score™ is 60/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Western Digital (HAM:WDC), the current Gross Margin % is 50.22% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Western Digital (HAM:WDC) Overvalued in 2026?
Based on GuruFocus' analysis, Western Digital stock appears to be overvalued.
The current stock price of €52.14 is trading 579% above its estimated GF Value™ of €7.68.
Key valuation signals for HAM:WDC:
Gross Margin %: 50.22% (83% above median its 10-year median of 27.40)
GF Value™: €7.68 vs. price of €52.14 (579% above fair value)
Industry Position: 104.4% above the Hardware median (#408 of 2454)
No single metric tells the full story. See the HAM:WDC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Western Digital is a leading vertically integrated supplier of hard disk drives. The HDD market is a practical duopoly, with Western Digital and Seagate being the two largest players. Western Digital designs and manufactures its HDDs, with much of the manufacturing and workforce located in Asia. The primary consumers of HDDs are data centers.
60GF Score
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