Seagate Guides Q1 Revenue 9% Above Estimates on AI Storage Boom
STX has more than doubled off its 52-week low of $138.3.
Summary
Seagate delivered a blowout quarter and guidance, driven by insatiable AI storage demand. Q4 revenue jumped 48.5% to $3.63B, beating by $140M, with adjusted EPS of $5.71 crushing the $5.09 consensus. The real shock is Q1 guidance: revenue of $4.1B at the midpoint, 9% above the $3.75B Street view, and EPS of $7.30, a 26% beat. CEO Mosley called out durable long-term demand for mass capacity storage as AI accelerates data generation. Shares surged over 8% after hours, adding to a year-to-date doubling. This follows a May debt-for-equity exchange that cleaned up the balance sheet, setting the stage for this operational leverage. The HAMR technology advantage is paying off, allowing capacity boosts without massive capex. Watch for sustained cloud capex trends and any pricing power commentary on the earnings call.
At the time of this announcement, STX was trading at $816.84 on NASDAQ in the Technology sector, with a market capitalization of approximately $167.6B. The 52-week trading range was $138.30 to $1,145.00. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Reuters.