Global Finance News
29 Jul 2026, 09:58
Seagate Stock Jumps 6.2% in Premarket as Record Results and Strong AI-Driven Outlook Impress Investors
Seagate Technology (NASDAQ: STX) shares surged 6.2% in Wednesday's premarket trading after the data storage company reported record fourth-quarter results, exceeded expectations, and issued a stronger-than-expected outlook, fueled by accelerating AI infrastructure investment and robust cloud data center demand.
For the fiscal fourth quarter, Seagate reported revenue of $3.63 billion, up from $2.44 billion a year earlier. GAAP diluted EPS more than doubled to $5.58 from $2.24, while non-GAAP EPS climbed to $5.71 from $2.59. Profitability improved significantly, with non-GAAP gross margin expanding to 52.7% from 37.9% and non-GAAP operating margin rising to 44.6%.
The company capped off a standout fiscal 2026, with annual revenue increasing 34% to $12.2 billion. Non-GAAP EPS nearly doubled to $15.58, while free cash flow reached a record $3.1 billion. Seagate also strengthened its balance sheet by reducing debt by $1.4 billion during the fiscal year and returned $810 million to shareholders through dividends and share repurchases.
Looking ahead, management issued an upbeat outlook for fiscal first-quarter 2027, forecasting revenue of approximately $4.1 billion and non-GAAP EPS of $7.30, well above the just-reported quarter. The company also said it expects only a minimal impact from current global tariff policies and the Middle East conflict based on current conditions.
CEO Dave Mosley highlighted accelerating demand driven by AI, noting that expanding cloud infrastructure and increasing data generation are fueling long-term demand for mass-capacity storage. He added that Seagate's Mozaic platform and HAMR technology roadmap position the company to capitalize on growing exabyte storage requirements while driving profitable growth.
The strong premarket rally reflects investor optimism over Seagate's accelerating earnings growth, expanding margins, record cash generation, and confidence that AI-driven cloud investment will continue to support demand for high-capacity storage solutions well into fiscal 2027.
Seagate Technology (NASDAQ: STX) shares surged 6.2% in Wednesday's premarket trading after the data storage company reported record fourth-quarter results, exceeded expectations, and issued a stronger-than-expected outlook, fueled by accelerating AI infrastructure investment and robust cloud data center demand.
For the fiscal fourth quarter, Seagate reported revenue of $3.63 billion, up from $2.44 billion a year earlier. GAAP diluted EPS more than doubled to $5.58 from $2.24, while non-GAAP EPS climbed to $5.71 from $2.59. Profitability improved significantly, with non-GAAP gross margin expanding to 52.7% from 37.9% and non-GAAP operating margin rising to 44.6%.
The company capped off a standout fiscal 2026, with annual revenue increasing 34% to $12.2 billion. Non-GAAP EPS nearly doubled to $15.58, while free cash flow reached a record $3.1 billion. Seagate also strengthened its balance sheet by reducing debt by $1.4 billion during the fiscal year and returned $810 million to shareholders through dividends and share repurchases.
Looking ahead, management issued an upbeat outlook for fiscal first-quarter 2027, forecasting revenue of approximately $4.1 billion and non-GAAP EPS of $7.30, well above the just-reported quarter. The company also said it expects only a minimal impact from current global tariff policies and the Middle East conflict based on current conditions.
CEO Dave Mosley highlighted accelerating demand driven by AI, noting that expanding cloud infrastructure and increasing data generation are fueling long-term demand for mass-capacity storage. He added that Seagate's Mozaic platform and HAMR technology roadmap position the company to capitalize on growing exabyte storage requirements while driving profitable growth.
The strong premarket rally reflects investor optimism over Seagate's accelerating earnings growth, expanding margins, record cash generation, and confidence that AI-driven cloud investment will continue to support demand for high-capacity storage solutions well into fiscal 2027.
