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

Seagate Technology (NASDAQ:STX) announced 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 return on equity of 1,005.65% and a net margin of 21.60%.The company had revenue of $3.63 billion for the quarter, compared to the consensus estimate of $3.50 billion. During the same quarter in the prior year, the company posted $2.59 EPS. Seagate Technology’s quarterly revenue was up 48.5% on a year-over-year basis. 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 Trading Down 8.5%

Shares of NASDAQ STX opened at $747.30 on Wednesday. Seagate Technology has a 1-year low of $138.30 and a 1-year high of $1,145.00. The business has a fifty day moving average price of $894.95 and a 200 day moving average price of $618.98. The stock has a market capitalization of $167.57 billion, a P/E ratio of 70.90 and a beta of 2.04. The company has a debt-to-equity ratio of 3.16, a current ratio of 1.33 and a quick ratio of 0.85.

Seagate Technology Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 7th. Investors of record on Thursday, September 24th will be paid a dividend of $0.74 per share. This represents a $2.96 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date is Thursday, September 24th. Seagate Technology’s dividend payout ratio is 28.08%.

Key Seagate Technology News

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

• Positive Sentiment: Strong earnings beat: Seagate reported adjusted EPS of $5.71, above the $5.10 consensus estimate, while revenue rose 48.5% year over year to $3.63 billion, topping expectations of approximately $3.50 billion. Net income increased to $1.29 billion from $488 million a year earlier. Seagate fiscal fourth-quarter results
• Positive Sentiment: Outlook materially exceeded estimates: Seagate forecast fiscal first-quarter 2027 revenue of $4.0 billion to $4.2 billion and EPS of $7.10 to $7.50, compared with analyst estimates of $3.7 billion and $5.63, respectively. The outlook reflects robust demand for high-capacity drives from cloud and AI data centers. Seagate AI-driven storage outlook
• Positive Sentiment: Improving cash generation and technology position: Management highlighted record fiscal 2026 profitability, 34% annual revenue growth and $3.1 billion in free cash flow. Its HAMR/Mozaic technologies are increasing drive capacity without requiring equivalent manufacturing expansion, supporting margins as AI storage demand grows.
• Neutral Sentiment: Dividend maintained: Seagate declared a quarterly dividend of $0.74 per share, payable October 7 to shareholders of record September 24. The annualized yield is approximately 0.4%, making the payment supportive but modest relative to the stock’s valuation.
• Negative Sentiment: Valuation and profit-taking remain headwinds: STX had already more than doubled during the year and recently traded near its all-time high, leaving the shares vulnerable to a “sell-the-news” reaction even after the earnings beat. The broader pullback in AI and memory-related stocks may also be amplifying volatility.

Insider Activity

In related news, CFO Gianluca Romano sold 22,488 shares of the business’s stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $774.22, for a total transaction of $17,410,659.36. Following the transaction, the chief financial officer directly owned 42,847 shares in the company, valued at $33,173,004.34. The trade was a 34.42% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Ban Seng Teh sold 8,003 shares of the company’s stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $817.28, for a total transaction of $6,540,691.84. Following the transaction, the executive vice president owned 3,691 shares in the company, valued at approximately $3,016,580.48. This trade represents a 68.44% 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. Insiders sold 151,069 shares of company stock worth $126,191,753 in the last quarter. 0.79% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Seagate Technology

Several hedge funds have recently made changes to their positions in the company. Rakuten Securities Inc. increased its holdings in Seagate Technology by 884.2% in the 2nd quarter. Rakuten Securities Inc. now owns 187 shares of the data storage provider’s stock worth $27,000 after buying an additional 168 shares during the period. Quarry LP acquired a new stake in Seagate Technology during the fourth quarter valued at $31,000. Palisade Asset Management LLC acquired a new position in shares of Seagate Technology in the third quarter worth about $37,000. Larson Financial Group LLC grew its position in shares of Seagate Technology by 41.9% during the 3rd quarter. Larson Financial Group LLC now owns 166 shares of the data storage provider’s stock valued at $39,000 after acquiring an additional 49 shares during the period. Finally, Birchwood Financial Partners Inc. purchased a new position in shares of Seagate Technology in the 4th quarter valued at about $41,000. 92.87% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on STX shares. Wall Street Zen raised shares of Seagate Technology from a “hold” rating to a “buy” rating in a research note on Saturday, May 2nd. BNP Paribas Exane raised their price target on shares of Seagate Technology from $530.00 to $860.00 and gave the stock an “outperform” rating in a research note on Wednesday, April 29th. Mizuho lifted their price objective on shares of Seagate Technology from $875.00 to $1,090.00 and gave the company an “outperform” rating in a report on Monday, June 8th. The Goldman Sachs Group boosted their price objective on shares of Seagate Technology from $385.00 to $700.00 and gave the company a “buy” rating in a research report on Wednesday, April 29th. Finally, Argus raised their target price on shares of Seagate Technology from $450.00 to $750.00 and gave the stock a “buy” rating in a research report on Thursday, April 30th. Twenty-two equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $923.00.

Seagate Technology Company Profile

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.