Key Stats for Seagate Technology Stock
- Price change for Seagate Technology stock: 11%
- $STX Share Price as of Apr. 29: $643
- 52-Week High: $697
- $STX Stock Price Target: $737
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What Happened?
Seagate Technology (STX) stock is surging after the company delivered one of its strongest quarters in years, blowing past Wall Street expectations on almost every metric.
For the quarter ending April 3,
- Seagate earned $4.10 per share on $3.11 billion in revenue.
- Analysts had expected $3.52 per share and $2.96 billion in revenue.
- That’s a significant beat on both lines. Revenue was up 44% compared to a year ago.
- Margins were the real standout. Adjusted gross margin hit 47%, and operating margin reached 37.5%.
- Free cash flow came in at nearly $1 billion, one of the highest levels Seagate has seen in over a decade.
Then came the guidance, which sent Seagate Technology stock even higher.
- For the current quarter, the company expects earnings of $4.80 to $5.20 per share on revenue of $3.35 billion to $3.55 billion.
- Analysts were only expecting $2.96 per share and $3.16 billion in sales.
- That’s an enormous gap, and it tells you the demand environment for hard drives is much stronger than the market had priced in.
CEO Dave Mosley said the company is entering a “new era of structural growth,” driven by AI applications that create more data to be stored. He’s not wrong. Data center customers accounted for 88% of the company’s exabyte shipments in the quarter, and demand is accelerating.
Seagate’s new HAMR-based hard drive technology, called Mozaic, is also ramping faster than expected. The latest version, Mozaic 4, can store up to 44 terabytes per drive.
Two of the world’s largest cloud providers have now qualified the product, and nearline capacity is nearly fully allocated through the end of 2027.
See analysts’ growth forecasts and price targets for Seagate Technology stock (It’s free) >>>
What the Market Is Telling Us About Seagate Technology Stock
Seagate Technology stock has been a beneficiary of the AI infrastructure boom, but even bulls weren’t expecting results this strong. The combination of pricing power, volume growth, and margin expansion is rare in hardware.
With capacity locked in through 2027 and a new 50-terabyte drive already in development, Seagate Technology’s stock looks well positioned to keep delivering.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
