Seagate Hits Record Margins, Guides 56% Revenue Growth on AI Storage Boom
STX has more than doubled off its 52-week low of $138.3 on elevated volume (1.9× avg).
Summary
Seagate's fiscal Q4 crushed expectations with record 52.7% gross margins and $3.63B revenue, beating by $140M. The real story is the guide: September quarter revenue seen at $4.0-$4.02B, up 56% year-over-year, with operating margins around 50% and EPS of $7.30. Data center demand is the engine—nearline exabyte capacity is committed through 2028, and customers are pushing for deals into 2029. Free cash flow hit $1.1B, and the balance sheet is flush with $1.7B cash. Shares are up 5% premarket, adding to yesterday's post-earnings surge. This follows the 8-K and initial reports last night; the new premarket move confirms the market is still digesting the magnitude of the beat and guide.
At the time of this announcement, STX was trading at $786.00 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 7 out of 10. Source: Benzinga.