Overview
- Seagate beat fiscal Q3 targets on April 29, posting $3.1 billion in revenue and $4.10 in adjusted EPS, both above Wall Street estimates.
- Management guided for fiscal Q4 revenue of $3.45 billion with $5 in EPS and said gross margin should top 50% for the first time.
- Data-center demand drove $2.5 billion in sales, or 80% of revenue, as the company shipped 199 exabytes and reported nearline capacity commitments through 2027.
- Seagate began shipping its Mozaic 4 hard drives in late March with up to 44TB per drive and rolled out an AI Storage Suite with configurations up to 256TB and Thunderbolt 5 support.
- Analysts lifted price targets — including Cantor Fitzgerald to $1,000 — yet coverage also flags a ~74 trailing P/E, a 3.16 debt-to-equity ratio, and recent insider selling.