Seagate Technology Holdings (STX) delivered a powerful quarterly earnings report, with revenue and profit both surpassing Wall Street estimates by a significant margin.
Fourth-quarter revenue climbed 48.5% to $3.63 billion, comfortably ahead of the analyst consensus estimate of $3.49 billion for the period.
The Singapore-based company posted quarterly earnings of $5.71 per share, beating the Street estimate of $5.09 by more than 12%, signaling strong operational momentum across its storage business.
Shares of Seagate, which have more than doubled this year, jumped over 8% in extended trading following the earnings release, reflecting broad investor enthusiasm.
The results come at a critical moment for the AI trade, which has faced volatility and skepticism in recent months over stretched valuations and uneven execution across the sector.
Seagate has positioned itself as a key beneficiary of the AI infrastructure buildout, supplying high-capacity hard disk drives to large cloud companies expanding their data center footprints.
Central to the company’s competitive strength is its heat-assisted magnetic recording technology, which uses tiny lasers to help pack more data onto each disk, boosting capacity without requiring costly new manufacturing lines.
That technological edge has allowed Seagate to meet surging demand for generative AI storage infrastructure while also giving the company pricing power in a tight market.
Looking ahead, Seagate guided for first-quarter revenue of $4.1 billion, plus or minus $100 million, well above the analyst average estimate of $3.75 billion for the quarter.
CEO Dave Mosley raised the company’s multi-year revenue growth target, pointing to structural AI-driven storage demand as the primary force behind the upgraded outlook.
Mosley also noted that nearline capacity is almost fully allocated through calendar 2027, underscoring the depth and durability of customer commitments across the storage pipeline.
The strong forward guidance reflects a broader reality that cloud hyperscalers are continuing to invest heavily in the physical infrastructure needed to support large-scale AI model training and deployment.
Seagate’s results offer a timely boost to investors looking for concrete evidence that AI capital spending is translating into real revenue growth for hardware and storage companies.
