Seagate Technology (NASDAQ:STX) Announces Quarterly Earnings Results

Seagate Technology (NASDAQ:STX) posted its quarterly earnings data on Tuesday. The data storage provider reported $5.71 EPS for the quarter, beating analysts’ consensus estimates of $5.10 by $0.61, FiscalAI reports. The company had revenue of $3.63 billion during the quarter, compared to analyst estimates of $3.50 billion. Seagate Technology had a net margin of 21.60% and a return on equity of 1,005.65%. The business’s quarterly revenue was up 48.5% on a year-over-year basis. During the same period in the prior year, the firm earned $2.59 earnings per share. Seagate Technology updated its Q1 2027 guidance to 7.100-7.500 EPS.

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

• Seagate reported a strong fiscal Q4, with revenue of $3.6 billion, up 48% year over year, non-GAAP gross margin of 52.7%, EPS of $5.71, and more than $1.1 billion in free cash flow.
• Management expects continued momentum in fiscal 2027, guiding for September-quarter revenue of approximately $4.1 billion and non-GAAP EPS of $7.30, while forecasting sequential margin and cash-generation improvement throughout the year.
• Data-center demand remains exceptionally strong, accounting for 89% of Q4 exabyte shipments; long-term agreements have allocated most nearline capacity through calendar 2028, with customers seeking visibility into 2029 and beyond.
• The HAMR-based Mozaic roadmap is progressing, with HAMR products representing about 40% of nearline exabyte shipments at year-end, Mozaic 4 ramping with major cloud customers, and Mozaic 5 qualification shipments expected in late 2027.
• Seagate reduced gross debt by $1.4 billion year over year to approximately $3.6 billion and plans further repayments, while also increasing share repurchases and maintaining fiscal 2027 capital expenditures within its 4%-6% of revenue target.

Seagate Technology Stock Down 8.5%

Shares of NASDAQ STX traded down $69.69 during mid-day trading on Tuesday, reaching $747.30. The company had a trading volume of 8,756,609 shares, compared to its average volume of 4,349,740. The company has a debt-to-equity ratio of 3.16, a quick ratio of 0.85 and a current ratio of 1.33. Seagate Technology has a twelve month low of $138.30 and a twelve month high of $1,145.00. The stock’s 50 day moving average is $894.95 and its 200-day moving average is $618.98. The stock has a market capitalization of $167.57 billion, a PE ratio of 70.90 and a beta of 2.04.

Key Stories Impacting Seagate Technology

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

• Positive Sentiment: Quarterly results exceeded expectations. Seagate reported fiscal fourth-quarter adjusted EPS of $5.71, above the $5.10 consensus estimate, while revenue reached $3.63 billion versus expectations of approximately $3.50 billion. Revenue increased roughly 49% year over year, and GAAP net income rose to $1.29 billion from $488 million a year earlier. Seagate fiscal fourth-quarter and fiscal-year 2026 results
• Positive Sentiment: Outlook comfortably topped Wall Street forecasts. For fiscal first-quarter 2027, management projected revenue of $4.0 billion to $4.2 billion and EPS of $7.10 to $7.50, compared with consensus estimates of $3.7 billion and $5.63, respectively. The guidance points to continued pricing strength and robust data-center demand. Seagate upbeat-quarter forecast
• Positive Sentiment: AI-related storage demand remains the key catalyst. Seagate cited rapid AI infrastructure expansion and strong demand for mass-capacity nearline drives. Its HAMR-based Mozaic technology enables higher storage density without requiring entirely new manufacturing lines. The company also reported fiscal 2026 revenue growth of 34% and record free cash flow of $3.1 billion. Seagate AI-driven storage demand forecast
• Neutral Sentiment: Expectations and valuation remain elevated. STX had already more than doubled during the year, and its recent rally had outpaced some of management’s previous guidance. That raises the risk that investors will demand further upside surprises despite the strong report.
• Negative Sentiment: Sector volatility and external risks persist. The stock had recently pulled back alongside other AI, memory and hardware shares amid tariff concerns and broader profit-taking. Seagate also carries substantial leverage, with a debt-to-equity ratio above 3, which could amplify volatility if data-center spending slows.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the stock. JPMorgan Chase & Co. upped their price target on shares of Seagate Technology from $775.00 to $920.00 and gave the company an “overweight” rating in a research report on Thursday, June 11th. TD Cowen boosted their target price on shares of Seagate Technology from $500.00 to $850.00 and gave the company a “buy” rating in a research note on Wednesday, April 29th. Argus increased their target price on Seagate Technology from $450.00 to $750.00 and gave the company a “buy” rating in a report on Thursday, April 30th. Wedbush raised their target price on Seagate Technology from $700.00 to $825.00 and gave the stock an “outperform” rating in a research report on Monday, April 27th. Finally, The Goldman Sachs Group raised their target price on Seagate Technology from $385.00 to $700.00 and gave the stock a “buy” rating in a research report on Wednesday, April 29th. Twenty-two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $898.52.

Insider Transactions at Seagate Technology

In other Seagate Technology news, EVP Ban Seng Teh sold 8,003 shares of the company’s stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $817.28, for a total value of $6,540,691.84. Following the transaction, the executive vice president directly owned 3,691 shares of the company’s stock, valued at $3,016,580.48. This represents a 68.44% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP John Christopher Morris sold 5,626 shares of Seagate Technology stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $738.37, for a total value of $4,154,069.62. Following the sale, the executive vice president owned 11,954 shares of the company’s stock, valued at approximately $8,826,474.98. This represents a 32.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 151,069 shares of company stock worth $126,191,753. 0.79% of the stock is owned by company insiders.

Institutional Trading of Seagate Technology

Institutional investors have recently added to or reduced their stakes in the business. Sunbelt Securities Inc. lifted its stake in shares of Seagate Technology by 2.5% in the 4th quarter. Sunbelt Securities Inc. now owns 1,430 shares of the data storage provider’s stock valued at $394,000 after purchasing an additional 35 shares during the last quarter. Compound Planning Inc. increased its position in Seagate Technology by 26.3% during the fourth quarter. Compound Planning Inc. now owns 1,962 shares of the data storage provider’s stock worth $540,000 after buying an additional 408 shares during the last quarter. Axxcess Wealth Management LLC raised its holdings in Seagate Technology by 62.4% during the fourth quarter. Axxcess Wealth Management LLC now owns 2,349 shares of the data storage provider’s stock valued at $647,000 after buying an additional 903 shares in the last quarter. Birchwood Financial Partners Inc. bought a new position in Seagate Technology during the fourth quarter valued at about $41,000. Finally, Corient Private Wealth LLC lifted its position in shares of Seagate Technology by 311.1% in the fourth quarter. Corient Private Wealth LLC now owns 122,444 shares of the data storage provider’s stock worth $33,720,000 after buying an additional 92,656 shares during the last quarter. 92.87% of the stock is currently owned by institutional investors and hedge funds.

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.