Seagate Reports Strong Q4 Earnings and Exceeds First-Quarter Guidance
Seagate Technology PLC (NASDAQ:STX) reported fourth-quarter results that exceeded expectations, with adjusted earnings of $5.71 per share on revenue of $3.6 billion—well above the anticipated $5.09 per share and $3.5 billion in revenue. The company's performance was driven by increased demand for cloud storage due to AI-driven computing needs, which also boosted its non-GAAP gross margin from 37.9% a year ago to 52.7%. Looking ahead, Seagate issued first-quarter guidance of approximately $4.1 billion in revenue and $7.30 per share in earnings—significantly higher than the expected $3.8 billion and $5.87 per share. For fiscal 2026 as a whole, Seagate generated record cash flow with operating cash flow reaching $3.7 billion and free cash flow at $3.1 billion. The company used this strong performance to reduce debt by $1.4 billion during the year while maintaining its commitment to returning capital to shareholders.
Tickers: $STX
Topics: AI Infrastructure Cloud Demand Earnings Beat Revenue Growth