Seagate Reports Strong Fourth-Quarter Results and Guidance
Shares of Seagate Technology (STX) rose following its better-than-expected fourth-quarter results reported on July 28, 2026. The company delivered revenue of $3.63 billion for the quarter—a year-over-year increase of 49%—and non-GAAP earnings per share more than doubled to $5.71 from analysts' expectations of $5.10. Seagate also provided upbeat guidance, forecasting Q1 2027 revenue between $4 billion and $4.2 billion compared with estimates of $3.8 billion. The company's data-center segment drove much of the growth, contributing about 80% of total revenue and growing by 57% year-over-year to $2.9 billion. Nearline HDD exabyte capacity shipped increased by 43%, reflecting strong demand from hyperscalers in cloud computing environments. However, non-nearline HDD shipments declined due to weak consumer demand. Seagate's gross margin expanded significantly for the 13th consecutive quarter and reached 52.7%. The company also reported a sharp increase in free cash flow, which rose to $3.11 billion from just $818 million year-over-year.
Topics: cloud demand Q4 results Seagate STX stock rally