Seagate Technology (NASDAQ:STX) Posts Quarterly Earnings Results, Beats Estimates By $0.61 EPS

Seagate Technology (NASDAQ:STX) posted its quarterly earnings data on Tuesday. The data storage provider reported $5.71 EPS for the quarter, beating the consensus estimate of $5.10 by $0.61, FiscalAI reports. Seagate Technology had a net margin of 26.11% and a return on equity of 680.78%. The business had revenue of $3.63 billion during the quarter, compared to analyst estimates of $3.50 billion. During the same quarter last year, the firm posted $2.59 earnings per share. The business’s revenue for the quarter was up 48.5% compared to the same quarter last year. 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 Up 14.9%

Seagate Technology stock traded up $114.27 during mid-day trading on Thursday, hitting $878.70. The company had a trading volume of 2,166,782 shares, compared to its average volume of 4,366,728. The company has a quick ratio of 0.85, a current ratio of 1.33 and a debt-to-equity ratio of 3.16. Seagate Technology has a 1 year low of $144.75 and a 1 year high of $1,145.00. The business has a fifty day moving average of $895.22 and a 200 day moving average of $622.36. The stock has a market cap of $197.03 billion, a price-to-earnings ratio of 63.56 and a beta of 2.04.

Seagate Technology Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 7th. Investors of record on Thursday, September 24th will be issued a $0.74 dividend. This represents a $2.96 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date of this dividend is Thursday, September 24th. Seagate Technology’s dividend payout ratio is 21.33%.

Key Headlines Impacting Seagate Technology

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

• Positive Sentiment: Fiscal Q4 beat expectations: Seagate reported adjusted EPS of $5.71 versus the $5.10 consensus, while revenue rose 48.5% year over year to $3.63 billion, exceeding the $3.50 billion estimate. The company also reported record profitability and generated $3.1 billion in fiscal-year free cash flow. Seagate fiscal fourth-quarter and fiscal-year results
• Positive Sentiment: Stronger-than-expected guidance: Seagate forecast fiscal Q1 2027 EPS of $7.10–$7.50 and revenue of $4.0–$4.2 billion, well above Wall Street estimates of $5.63 EPS and $3.7 billion in revenue. Management cited robust AI-driven demand for high-capacity data-center storage. Seagate upbeat forecast
• Positive Sentiment: AI and HAMR momentum: Continued cloud and data-center demand, together with Seagate’s Mozaic and heat-assisted magnetic recording (HAMR) technologies, is supporting higher drive capacity, pricing power, margin expansion, and operating leverage. One bullish analyst raised a price target from $1,410 to $1,624, citing faster-than-expected HAMR adoption and an improving balance sheet. Seagate HAMR analysis
• Positive Sentiment: Broad analyst support: JPMorgan, Wells Fargo, Citigroup, Cantor Fitzgerald, Rosenblatt, TD Cowen, and Wedbush raised targets or reaffirmed positive ratings. Zacks also upgraded STX from “hold” to “strong-buy.”
• Neutral Sentiment: Seagate declared a quarterly dividend of $0.74 per share, payable October 7 to shareholders of record September 24, implying an annualized yield of roughly 0.4%.
• Negative Sentiment: Valuation and expectations remain risks: the stock has already rallied sharply, and some commentary warns that substantial AI growth may be priced in. A high P/E and elevated leverage could amplify volatility if demand, pricing, or HAMR execution disappoints.

Insider Activity at Seagate Technology

In other Seagate Technology news, CFO Gianluca Romano sold 22,488 shares of the company’s stock in a transaction on Wednesday, May 6th. The shares were sold at an average price of $774.22, for a total value of $17,410,659.36. Following the completion of the transaction, the chief financial officer owned 42,847 shares in the company, valued at $33,173,004.34. This represents a 34.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing 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 the firm’s stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $738.37, for a total value of $4,154,069.62. Following the transaction, the executive vice president directly owned 11,954 shares in the company, valued at approximately $8,826,474.98. The trade was a 32.00% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 151,069 shares of company stock valued at $126,191,753. Corporate insiders own 0.79% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Sivia Capital Partners LLC acquired a new position in Seagate Technology in the second quarter valued at $262,000. PCM Encore LLC acquired a new stake in shares of Seagate Technology during the fourth quarter worth about $224,000. ICONIQ Capital LLC acquired a new stake in shares of Seagate Technology during the second quarter worth about $223,000. Integrated Quantitative Investments LLC purchased a new position in shares of Seagate Technology during the fourth quarter worth about $220,000. Finally, Mitchell Mcleod Pugh & Williams Inc. purchased a new position in shares of Seagate Technology during the fourth quarter worth about $218,000. Institutional investors and hedge funds own 92.87% of the company’s stock.

Wall Street Analyst Weigh In

Several brokerages have commented on STX. Argus raised their price target on shares of Seagate Technology from $450.00 to $750.00 and gave the company a “buy” rating in a research report on Thursday, April 30th. Weiss Ratings reiterated a “buy (b)” rating on shares of Seagate Technology in a research note on Wednesday, June 24th. Fox Advisors cut Seagate Technology from an “overweight” rating to an “equal weight” rating in a research note on Monday, June 22nd. Zacks Research raised Seagate Technology from a “hold” rating to a “strong-buy” rating in a research report on Tuesday. Finally, Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $1,300.00 target price on shares of Seagate Technology in a report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $970.00.

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.