Overview
- Seagate, which reported after the close Tuesday, topped fiscal Q3 targets and sent its stock up roughly 16% to 18% in late trading.
- Management guided for Q4 revenue of $3.45 billion plus or minus $100 million and adjusted EPS of $5.00 plus or minus $0.20, both well above Wall Street estimates.
- The quarter showed stronger profitability and cash generation, with non-GAAP gross margin near 47%, free cash flow about $953 million, $641 million of debt retired, and a $0.74 dividend declared.
- CEO Dave Mosley said rising AI workloads are driving more data creation and storage needs, and executives at Seagate and Western Digital have said their capacity is fully allocated through 2026.
- Peers rallied following Tuesday’s upbeat forecast, with Western Digital and others climbing, as tight supply and higher memory prices reinforced expectations for continued storage spending.