Seagate Technology (NASDAQ:STX) Posts Earnings Results, Beats Estimates By $0.63 EPS

Seagate Technology (NASDAQ:STX) released its quarterly earnings data on Tuesday. The data storage provider reported $4.10 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.47 by $0.63, FiscalAI reports. Seagate Technology had a net margin of 19.59% and a negative return on equity of 936.38%. The company had revenue of $3.11 billion for the quarter, compared to analysts’ expectations of $2.94 billion. During the same quarter in the prior year, the firm earned $1.90 EPS. The business’s revenue was up 44.1% on a year-over-year basis. Seagate Technology updated its Q4 2026 guidance to 4.800-5.200 EPS.

Here are the key takeaways from Seagate Technology’s conference call:

• Seagate delivered a strong March quarter with $3.1B revenue (+44% YoY), 47% non‑GAAP gross margin, non‑GAAP EPS $4.10 and roughly $953M free cash flow, and provided a bullish June‑quarter guide.
• Mozaic HAMR momentum accelerated — Mozaic 4+ began revenue shipments and is qualified with major CSPs, is expected to be the majority of HAMR exabyte shipments exiting calendar 2026, and Mozaic 5+ (target ~50TB) is on track for late‑2027 qualification.
• Management raised its long‑term revenue growth target to a minimum of 20% annually, citing durable AI‑driven demand and nearline capacity that is nearly fully allocated through calendar 2027 via build‑to‑order agreements.
• Balance‑sheet and capital‑allocation progress — Seagate retired $641M of debt this quarter, exited with ~$3.9B gross debt and ~0.7x net leverage, received a Fitch upgrade to investment grade, and plans further debt reduction plus share buybacks.
• Risks and constraints include heavy HAMR allocation to cloud/hyperscale customers (limiting near‑term lower‑capacity/edge supply), a continued focus on areal‑density rather than unit growth, and potential geopolitical supply/logistics disruption despite management’s current view of limited impact.

Seagate Technology Stock Performance

STX stock traded up $6.24 during midday trading on Thursday, hitting $649.54. The company’s stock had a trading volume of 3,724,043 shares, compared to its average volume of 4,128,712. The stock’s 50-day moving average price is $448.93 and its 200 day moving average price is $353.84. The company has a quick ratio of 0.72, a current ratio of 1.12 and a debt-to-equity ratio of 7.63. Seagate Technology has a 1 year low of $89.89 and a 1 year high of $697.00. The stock has a market cap of $141.65 billion, a price-to-earnings ratio of 73.49, a PEG ratio of 0.99 and a beta of 1.61.

Seagate Technology Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 7th. Shareholders of record on Wednesday, June 24th will be given a $0.74 dividend. The ex-dividend date of this dividend is Wednesday, June 24th. This represents a $2.96 annualized dividend and a yield of 0.5%. Seagate Technology’s payout ratio is currently 33.48%.

Seagate Technology News Summary

Here are the key news stories impacting Seagate Technology this week:

• Positive Sentiment: Q3 beat and strong guidance — Seagate reported $4.10 EPS and $3.11B revenue, both ahead of consensus, and issued Q4 EPS guidance of $4.80–$5.20 (well above Street expectations). Management cited AI-driven data-center demand and record margins/free cash flow. Business Wire: Q3 Results
• Positive Sentiment: Market confirms AI tailwind — Reuters and industry write-ups highlight that Seagate’s upbeat forecast is being read as evidence that hyperscalers’ AI capex is supporting sustained demand for mass-capacity storage, a structural revenue driver. Reuters: Upbeat Forecast
• Positive Sentiment: Analyst bullishness and price-target lifts — Multiple brokerages raised targets and ratings after the results (big increases from Rosenblatt, Bernstein, JPMorgan, Goldman, Morgan Stanley, Cantor Fitzgerald and others), which supports momentum and institutional buying. Example: Bernstein raised its PT to $1,000. MarketScreener: Bernstein PT Raise
• Positive Sentiment: Product and portfolio updates — Seagate refreshed storage lineup targeted at high‑resolution media and AI workflows, reinforcing its positioning in the AI/data‑center stack. InsiderMonkey: Product Refresh
• Neutral Sentiment: Shareholder return action — Seagate declared a quarterly dividend of $0.74 per share (record June 24; pay July 7), a modest yield that may matter to income-focused holders but is small relative to the stock’s recent moves.
• Negative Sentiment: Valuation and cyclicality risk — Several commentators warn the rally has re‑rated Seagate to premium multiples that assume a multi‑year AI capex cycle; buying near the top of that cycle could expose investors to downside if hyperscaler spending slows. Seeking Alpha: Capex Cycle Risk
• Negative Sentiment: Balance sheet leverage — Seagate carries elevated leverage (debt/equity reported as high), which raises sensitivity to earnings or cash‑flow setbacks after a big valuation re‑rating.

Insiders Place Their Bets

In other Seagate Technology news, Director Jay L. Geldmacher sold 925 shares of the business’s stock in a transaction on Friday, January 30th. The stock was sold at an average price of $448.02, for a total value of $414,418.50. Following the transaction, the director owned 223 shares of the company’s stock, valued at approximately $99,908.46. The trade was a 80.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Kian Fatt Chong sold 5,846 shares of the stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $416.48, for a total value of $2,434,742.08. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 91,355 shares of company stock valued at $37,544,394. Insiders own 0.79% of the company’s stock.

Institutional Trading of Seagate Technology

Several hedge funds have recently made changes to their positions in STX. Rakuten Securities Inc. raised its stake in shares of Seagate Technology by 884.2% in the second quarter. Rakuten Securities Inc. now owns 187 shares of the data storage provider’s stock valued at $27,000 after buying an additional 168 shares during the period. Quarry LP bought a new stake in shares of Seagate Technology in the fourth quarter valued at $31,000. Palisade Asset Management LLC bought a new stake in shares of Seagate Technology in the third quarter valued at $37,000. Larson Financial Group LLC raised its stake in shares of Seagate Technology by 41.9% in the third quarter. Larson Financial Group LLC now owns 166 shares of the data storage provider’s stock valued at $39,000 after buying an additional 49 shares during the period. Finally, Birchwood Financial Partners Inc. bought a new stake in shares of Seagate Technology in the fourth quarter valued at $41,000. 92.87% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of equities research analysts have commented on the company. JPMorgan Chase & Co. raised their price objective on Seagate Technology from $525.00 to $775.00 and gave the company an “overweight” rating in a research note on Wednesday. Jefferies Financial Group restated a “hold” rating on shares of Seagate Technology in a report on Wednesday, February 4th. Argus boosted their price objective on Seagate Technology from $300.00 to $450.00 and gave the company a “buy” rating in a report on Thursday, January 29th. KeyCorp set a $500.00 price objective on Seagate Technology in a report on Wednesday, January 28th. Finally, Cantor Fitzgerald boosted their price objective on Seagate Technology from $700.00 to $1,000.00 and gave the company an “overweight” rating in a report on Wednesday. Twenty equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $696.63.

About Seagate Technology

Seagate Technology (NASDAQ: STX) is a global data storage company that designs, manufactures and sells a broad range of storage products and systems. The firm’s product portfolio includes traditional hard disk drives (HDDs), solid-state drives (SSDs), hybrid storage devices and integrated storage systems aimed at enterprise, cloud, OEM and consumer markets. Seagate also provides services that support its hardware offerings, including data recovery and storage management solutions.

Seagate’s products are used in a wide array of applications, from large-scale data centers and cloud infrastructure to desktop and portable consumer devices.