Seagate Rallies on AI Storage Boom After Blowout Quarter and New Analyst Targets

Overview

• Seagate beat fiscal Q3 expectations with $3.1 billion in revenue, earnings of $4.10 per share, and a 47% gross margin.
• Data‑center demand led the results, generating $2.5 billion or 80% of sales as the company shipped 199 exabytes of capacity.
• Management guided for Q4 revenue of $3.45 billion and $5 in earnings per share with gross margin expected to top 50% for the first time.
• Analysts raised targets after the report, with Cantor Fitzgerald moving to $1,000 and Morgan Stanley, JPMorgan, and Loop Capital lifting theirs.
• Risks flagged include a trailing price‑to‑earnings ratio near 74, a debt‑to‑equity ratio of 3.16, and recent insider selling including a large reduction by EVP James Ci Lee.