Seagate beats Q2 revenue and EPS expectations

Overview

• Data storage products maker's fiscal Q2 revenue rose, beating analysts' expectations

• Adjusted EPS rose 53.2% yr/yr, beating analysts' expectations

• Company declared a quarterly cash dividend of $0.74 per share

Outlook

• Seagate projects fiscal Q3 2026 revenue of $2.90 bln, plus or minus $100 mln

• Company expects fiscal Q3 2026 non-GAAP EPS of $3.40, plus or minus $0.20

• Seagate anticipates minimal impact from global tariff policies in fiscal Q3 2026

Result Drivers

• DATA CENTER DEMAND - Seagate attributed strong results to durable demand in the data center sector, as stated by CEO Dave Mosley

• HAMR PRODUCTS - The ongoing ramp of HAMR-based Mozaic products contributed to quarterly performance, according to CEO Dave Mosley

• AI-DRIVEN STORAGE NEEDS - AI applications driving demand for cost-efficient, high-performance storage solutions, per CEO Dave Mosley

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the computer hardware peer group is "buy"

• Wall Street's median 12-month price target for Seagate Technology Holdings PLC is $370.00, about 3.3% above its January 26 closing price of $358.29

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release: ID:nBw1M8P5Sa

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