Data storage manufacturer Seagate (NASDAQ:STX) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 29.5% year on year to $2.44 billion. On the other hand, next quarter’s revenue guidance of $2.5 billion was less impressive, coming in 2.5% below analysts’ estimates. Its non-GAAP profit of $2.59 per share was 6% above analysts’ consensus estimates.
Seagate’s most recent quarter delivered growth above Wall Street’s expectations, but the market responded negatively, reflecting some caution. Management attributed the strong performance to ongoing demand from cloud providers and a successful ramp of its advanced nearline and HAMR-based hard drives. CEO Dave Mosley highlighted that "record gross margins" and robust exabyte shipments were underpinned by product transitions and discipline in aligning supply with demand. The company also emphasized operational improvements and increased adoption of high-capacity drives by major cloud customers as key contributors to the quarter’s results.
Shares of data storage manufacturer Seagate (NASDAQ:STX)
jumped 3.3% in the morning session after a flurry of analyst upgrades and price target hikes fueled by strong financial results and a positive outlook. The positive sentiment from Wall Street follows the company's latest earnings report, which revealed a 29.5% year-over-year increase in sales and a non-GAAP profit per share that beat consensus estimates. Several firms, including Baird and Rosenblatt, boosted their price targets to as high as $200, pointing to the company's strong fundamentals and improving profit margins. This financial strength is underscored by impressive trailing twelve-month earnings per share (EPS) growth of over 530%, reinforcing its position as a high-growth momentum stock. The optimism is also supported by increasing demand for mass-capacity storage, driven by the expansion of cloud and AI infrastructure.
Seagate Technology (STX) shows strong earnings growth, rising margins, and bullish technicals, making it a top high-growth momentum stock. Explore breakout setups here.
Wall Street has issued downbeat forecasts for the stocks in this article.
These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like M&A advisory.
Wall Street has experienced a broadly positive day, marked by a resilient rally that has added over $1 trillion in market value. This surge in investor confidence is primarily driven by a confluence of strong corporate earnings, sustained momentum in the technology sector, and a perceived easing of anxieties related
Large-cap stocks have the power to shape entire industries thanks to their size and widespread influence.
With such vast footprints, however, finding new areas for growth is much harder than for smaller, more agile players.
Shares of data storage manufacturer Seagate (NASDAQ:STX)
fell 5.4% in the afternoon session after the company provided a weaker-than-expected forecast for the upcoming quarter, which overshadowed its strong fourth-quarter earnings report. While the data storage manufacturer's quarterly revenue and profit both topped analyst estimates, its guidance for the first fiscal quarter of 2026 fell short. Seagate projected revenue with a midpoint of $2.5 billion and adjusted earnings per share of $2.30, both below consensus expectations. This outlook raised concerns as it suggested a potential sequential decline from the strong quarter the company just delivered. The disappointing forecast prompted investors to sell, especially since the stock had already surged significantly year-to-date, making it prone to profit-taking on any sign of weakness.
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CEO Dave Mosely attributed the strength to the structural enhancements implemented in the company’s business and ongoing demand strength from cloud customers for its high-capacity drives.
Data storage manufacturer Seagate (NASDAQ:STX) announced better-than-expected revenue in Q2 CY2025, with sales up 29.5% year on year to $2.44 billion. On the other hand, next quarter’s revenue guidance of $2.5 billion was less impressive, coming in 2.5% below analysts’ estimates. Its non-GAAP profit of $2.59 per share was 6% above analysts’ consensus estimates.
Seagate Technology Holdings announces fourth-quarter financial results for fiscal 2025 after the market close on Tuesday. Here's a rundown of the report.
After the conclusion of the US market's regular session on Tuesday, let's examine the after-hours session and unveil the notable S&P500 performers among the top gainers and losers.
