New York, Feb 25, 2026, 18:01 EST — After-hours
- Western Digital finished Wednesday’s session up 7.5%, though the stock dipped after the bell.
- S&P Global Ratings bumped the hard-drive maker up to investment grade, following a recent cut in its debt load.
- The filing showed 2029 and 2032 notes were redeemed, and a preferred share class is now gone.
Western Digital Corp jumped 7.5% to finish at $290.95 Wednesday, then slipped around 0.7% after hours as the market processed a credit-rating bump tied to the latest balance-sheet streamlining.
That matters: “investment grade” sits just above junk status, and breaching that threshold opens doors to more bond buyers. For companies tapping debt markets, it can also mean cheaper borrowing down the line.
This comes as investors rush to favor hardware suppliers that consistently generate cash, rather than simply chasing AI-driven growth narratives.
Western Digital disclosed in an SEC filing that it has wiped out its Series A convertible perpetual preferred stock following a mandatory conversion, leaving no preferred shares on the books. The company also said it redeemed all of its 2.850% senior notes due 2029 and 3.100% senior notes due 2032, having deposited enough with the trustee to cover both the redemption price and accrued interest.
S&P is sticking with a stable outlook for Western Digital, citing steady demand for hard disk drives and solid cash flow generation, according to Investing.com. The ratings agency figures Western Digital will keep a net cash position and just $1.6 billion in convertible notes — that’s debt eligible for share conversion — while also leaving its revolving credit facility untapped.
Chief Legal Officer Cynthia Tregillis unloaded 438 shares across two trades on Feb. 23 and Feb. 24, according to a separate Form 4. The sales were made under a pre-set Rule 10b5-1 plan.
Western Digital shares had slipped in the previous session, ending Tuesday at $270.57.
Wall Street finished in positive territory, lifted by fresh gains in tech. Investors seemed reassured after Nvidia posted solid numbers following the close, Reuters said.
The swing isn’t one-way. Western Digital’s stock has seen its share of volatility, and even with a credit upgrade, it’s hardly shielded from weaker data-center demand, softening prices, or an AI sentiment pullback if buyers slam the brakes on spending.
Management heads to Morgan Stanley’s Technology, Media & Telecom Conference on March 3, hitting the stage at 10:45 a.m. ET. Investors are tuning in for any signals on demand trends, pricing shifts, and what’s next for the company’s capital structure.
