Seagate Posts $7.59 Q1 EPS as AI-Driven HDD Demand Holds
STX has more than doubled off its 52-week low of $217.67.
Summary
Seagate reported first-quarter EPS of $7.59 and adjusted EPS of $7.68, on revenue of $4.2B and net income of $1.76B, a strong print for a company that earned $3.2B in net income on $12.2B of revenue across all of FY2026. The company also posted record free cash flow, cut debt, and declared a $0.76 per share quarterly dividend payable January 7, 2027 to holders of record December 23, 2026; after quarter-end it retired an additional $750 million of principal debt, bringing gross debt to $1.6 billion. For the second quarter, Seagate sees revenue of $4.7B-$4.9B and adjusted EPS of $9 to $9.40. The result lands after a rough stretch for the stock: shares fell 12% to $829.40 on October 2 after Nikkei reported Toshiba plans to double HDD output, and the company is reportedly bidding against Toshiba for TDK's magnetic-head business. That competitive overhang makes this quarter's profitability the key data point — it shows whether AI-driven nearline demand is still translating into earnings power despite supply-side threats.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — Seagate declared a $0.76 per share quarterly dividend, payable January 7, 2027 to holders of record December 23, 2026, and retired an additional $750 million of principal debt after quarter-end, bringing gross debt to $1.6 billion.
At the time of this announcement, STX was trading at $667.00 on NASDAQ in the Technology sector, with a market capitalization of approximately $151.9B. The 52-week trading range was $217.67 to $1,145.00. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.