Seagate Posts Record FQ1 Profit, Guides FQ2 Revenue to $4.8B
STX has more than doubled off its 52-week low of $217.67.
Summary
Seagate reported FQ1 revenue of $4.2 billion, 57.3% GAAP gross margin and $7.59 diluted EPS, then guided FQ2 to $4.8 billion in revenue and $9.20 non-GAAP EPS while cutting gross debt to $1.6 billion.
Key Events · Earnings and Guidance · STX
-
Record FQ1 Results
Revenue of $4.2 billion versus $2.6 billion a year ago; GAAP gross margin 57.3% versus 39.4%; GAAP diluted EPS $7.59 versus $2.43.
-
FQ2 Guidance Above Current Quarter
Guides fiscal Q2 2027 revenue to $4.8 billion +/- $100 million and non-GAAP diluted EPS to $9.20 +/- $0.20.
-
Debt Cut to $1.6 Billion
Retired $1.2 billion of principal debt in the quarter and another $750 million after quarter-end, bringing gross debt to $1.6 billion against $1.3 billion of cash.
-
Dividend Raised 3%
Quarterly cash dividend increased to $0.76 per share, payable January 7, 2027 to shareholders of record December 23, 2026.
Analysis · STX · Technology
This was a step-change, not an increment: revenue of $4.2 billion nearly doubled from $2.6 billion a year ago, GAAP gross margin jumped to 57.3% from 39.4%, and diluted EPS came in at $7.59 versus $2.43. Guidance for fiscal Q2 points to revenue of $4.8 billion and non-GAAP EPS of $9.20, both well above the quarter just reported, which tells investors demand is still accelerating rather than peaking. Cash generation matched the earnings: $1.7 billion from operations and $1.5 billion of free cash flow funded $1.2 billion of debt retirement in the quarter plus another $750 million after quarter-end, leaving gross debt at $1.6 billion against $1.3 billion of cash. The board raised the dividend about 3% to $0.76 per share. The main risk to the thesis is that this level of margin and growth is being priced as durable; any slowdown in hyperscale nearline demand would hit a stock trading at a very high absolute share price with heavy insider selling already on record.
How filings like this one have moved
In the 30 days to Oct 28, 2026, 36.5% of the 953 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.66%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, STX was trading at $613.00 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 filing was assessed with positive market sentiment and an importance score of 8 out of 10.