Key Highlights
- Seagate delivered Q3 adjusted EPS of $4.10, crushing the $3.48 consensus, with revenue at $3.11B versus $2.95B forecasted
- Top-line growth surged 44% compared to the prior year’s $2.16B
- Q4 projections of $5.00 EPS and $3.45B in revenue significantly exceeded analyst predictions
- Non-GAAP gross margin expanded to 47.0%, jumping from last year’s 36.2%
- STX shares rocketed more than 18% after hours, climbing to $687.00
Seagate Technology (STX) delivered an impressive fiscal third quarter for 2026, crushing analyst expectations across key metrics while providing fourth-quarter guidance that significantly outpaced Wall Street’s projections.
SEAGATE $STX Q3’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $3.1B (Est. $3.0B) 🟢; +44% y/y
🔹 EPS: $4.10 (Est. $3.50) 🟢; +116% y/y
🔹 Gross Margin: 47.0% (Est. 44.6%) 🟢
🔹 FCF: $953M
🔹 FQ4 Revenue Guide: $3.5B (Est. $3.1B) 🟢; +41% y/yQ4 Guide:
🔹 Revenue: $3.5B (Est. $3.1B) 🟢;… pic.twitter.com/2QoYnrwY4j— Wall St Engine (@wallstengine) April 28, 2026
The company reported adjusted earnings per share of $4.10, substantially exceeding the Street’s $3.48 projection. Total revenue reached $3.11 billion, surpassing the anticipated $2.95 billion figure and representing a remarkable 44% increase from the $2.16 billion recorded in the comparable quarter last year.
Shares finished Tuesday’s regular trading session at $579.03 before skyrocketing to $687.00 during extended hours — representing a gain exceeding 18%.
Seagate Technology Holdings plc, STX
The company’s net income climbed to $748 million, a substantial improvement from the $340 million posted in the year-ago period. GAAP gross margin stood at 46.5%, while the non-GAAP measure hit 47.0%, marking a significant expansion from the 36.2% recorded in the previous year’s quarter.
Seagate produced $1.1 billion in operating cash flow alongside $953 million in free cash flow throughout the quarter. These robust figures are particularly impressive considering the company simultaneously reduced its debt load by $641 million during the same timeframe.
Shareholder returns totaled $191 million through a combination of dividend payments and share repurchases. The board approved a quarterly cash dividend of $0.74 per share, scheduled for payment on July 7, 2026, to shareholders on record as of June 24, 2026.
CEO Dave Mosley characterized the quarter as delivering “record margin performance,” noting the company produced “close to $1 billion in free cash flow.”
Q4 Projections Significantly Beat Expectations
The primary catalyst for the after-hours surge came from the company’s forward-looking outlook. Seagate issued Q4 revenue guidance of $3.45 billion, plus or minus $100 million, well above the consensus estimate of $3.15 billion — representing roughly a 9% beat at the midpoint.
Fourth-quarter adjusted EPS guidance landed at $5.00, plus or minus $0.20, compared to analyst expectations of $3.97. This projection represents a substantial 26% premium over what Wall Street anticipated.
Company leadership noted that the forecast assumes limited impact from tariff policies and existing geopolitical dynamics.
Artificial Intelligence Fueling Storage Expansion
The company highlighted artificial intelligence as a significant growth catalyst. According to Seagate, expanding AI workloads are driving accelerated data generation, which consequently boosts sustained demand for storage solutions.
This strategic positioning resonated strongly with investors and helped support the compelling revenue expansion narrative.
Over the trailing twelve months, STX has appreciated approximately 610%, establishing itself among the top performers within the technology hardware sector.
The equity’s 52-week trading range spanned from $77.56 to $592.84. Even before Tuesday’s extended-hours movement, shares were already trading near the upper boundary of that range.
According to Benzinga’s stock analysis metrics, Seagate’s price momentum remains favorable across short-, medium-, and long-term horizons.
The company’s third-quarter free cash flow generation of $953 million combined with debt reduction of $641 million demonstrates ongoing balance sheet improvement.
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