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Seagate Beats Q4 Estimates and Issues Strong Q1 Guidance on AI Storage Demand

Cloud customers are paying higher contract prices for limited nearline capacity as Seagate ramps HAMR/Mozaic to raise per-drive storage.

Overview

  • Seagate reported fiscal Q4 results on Tuesday, July 28, with adjusted EPS of $5.71 and roughly $3.6 billion in revenue, topping Wall Street estimates.
  • The company guided fiscal Q1 revenue to about $4.1 billion and adjusted EPS to $7.30, and its shares jumped more than 8% in after-hours trading.
  • CEO Dave Mosley said AI-driven data growth creates durable demand for mass-capacity drives and Seagate said nearline capacity is almost fully allocated through calendar 2027.
  • Seagate is ramping HAMR/Mozaic technology to increase bits per disk without building new factories, but long component lead times and constrained supply could limit new order intake.
  • Analysts raised price targets on the strength of Seagate’s report, and investors will watch Western Digital’s Aug. 5 results and whether contract resets deliver sustained revenue and margin gains.