Western Digital has reported its Q2 results, showing strong revenue and gross margin growth. The company’s revenue of $3.75 billion was in line with analyst expectations, with gross margins of 54.4% above the Street’s forecast. Non-GAAP EPS of $3.56 was also above expectations, with cloud revenue of $3.35 billion slightly below GS’s estimate but above the Street’s forecast. Client and Consumer revenue both missed expectations, however. Looking ahead to Q3, Western Digital guided revenue at the midpoint of $4.10 billion, which is in line with analyst expectations. Gross margin is expected to be between 55% and 56%, above the Street’s forecast. Non-GAAP EPS guidance of $3.85 to $4.15 was slightly above expectations.

In other news, DUOL saw its stock price decline by 7% in pre-market trading after reporting Q2 results ahead of expectations but with sequential bookings declining. KVYO reported 2Q revenue beating expectations and guided 3Q revenue slightly above the Street’s forecast, while FIG saw revenues accelerate again but with no upside on OI. DDOG saw its stock price drop by 18% after reporting a significant revenue acceleration in Q2 but with a focus on 3Q guidance that is expected to be flat y/y. The company will hold a conference call at 8am ET today to discuss its results.

Overall, Western Digital’s strong Q2 results and guided growth for Q3 suggest that the company is continuing to perform well despite some misses in revenue from its Client and Consumer segments. The stock price decline in DUOL and other companies may be a result of investor caution ahead of earnings season, but overall the industry appears to be performing well.