Seagate Technology (STX) posted a strong fiscal Q3 2026, topping analyst estimates on both earnings and revenue, then backed it up with Q4 guidance that left Wall Street’s forecasts in the dust.
SEAGATE $STX Q3’26 EARNINGS HIGHLIGHTS
Revenue: $3.1B (Est. $3.0B)
; +44% y/y
Q4 Guide:
— Wall St Engine (@wallstengine) April 28, 2026
Adjusted EPS came in at $4.10, well above the $3.48 consensus. Revenue hit $3.11 billion, beating the $2.95 billion estimate and rising 44% from $2.16 billion in the same quarter last year.
The stock closed the regular session at $579.03 on Tuesday before jumping to $687.00 in after-hours trading — a move of over 18%.
Seagate Technology Holdings plc, STX
Net income rose to $748 million, compared to $340 million a year ago. GAAP gross margin was 46.5%, while non-GAAP gross margin reached 47.0%, up sharply from 36.2% in the prior year period.
Seagate generated $1.1 billion in operating cash flow and $953 million in free cash flow during the quarter. That’s a strong result for a company that also retired $641 million in debt in the same period.
The company returned $191 million to stockholders through dividends and buybacks. The board declared a quarterly cash dividend of $0.74 per share, payable July 7, 2026, to stockholders of record as of June 24, 2026.
CEO Dave Mosley called it a quarter of “record margin performance,” adding that the company generated “close to $1 billion in free cash flow.”
The real fuel behind the after-hours pop was the forward outlook. Seagate guided for Q4 revenue of $3.45 billion, plus or minus $100 million, against a consensus of $3.15 billion — a 9% beat at the midpoint.
Q4 adjusted EPS guidance came in at $5.00, plus or minus $0.20, versus the $3.97 analyst estimate. That’s a 26% premium to what the Street was expecting.
Management flagged that the outlook assumes minimal impact from tariffs and current geopolitical conditions.
Seagate pointed to AI as a key driver. The company said increasing AI workloads are accelerating data creation, which in turn lifts long-term demand for storage capacity.
That narrative helped frame the revenue growth story — and markets clearly bought in.
Over the past 12 months, STX has gained roughly 610%, making it one of the stronger performers in the tech hardware space.
The stock’s 52-week range ran from $77.56 to $592.84. Prior to Tuesday’s after-hours move, it was already trading near the top of that range.
Seagate’s price trend is positive across short-, medium-, and long-term timeframes, according to Benzinga’s stock rankings.
The company’s Q3 free cash flow of $953 million and debt retirement of $641 million point to a balance sheet that continues to strengthen.
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