Overview
- Seagate posted fiscal first-quarter revenue of $2.63 billion and adjusted earnings of $2.61 per share, topping Wall Street estimates.
- The company guided second-quarter revenue to $2.6 billion to $2.8 billion with adjusted EPS of $2.55 to $2.95, both above consensus at the midpoint.
- CEO Dave Mosley said AI is reshaping hard-drive demand and noted high-capacity, cloud-focused output is largely under contract through 2026 with visibility into 2027.
- Seagate plans to expand capacity through higher-density drives using HAMR technology rather than adding unit manufacturing, with gross margins around 40% and guidance implying roughly 41% next quarter.
- Shares gained after the report and are up about 160% year to date, as analysts raised targets including Rosenblatt to $270 and Barclays to $240.