Seagate Technology (NASDAQ:STX) Announces Quarterly Earnings Results, Beats Estimates By $0.63 EPS

Key Points

• Seagate beat expectations with $4.10 EPS vs. $3.47 expected and revenue of $3.11 billion, and raised Q4 2026 guidance to 4.800–5.200 EPS.
• Despite the beat, shares fell about 2.8% to $579.03 on heavy volume, leaving the stock near its one-year high and with a market cap around $126.3 billion.
• Elevated valuation and leverage (P/E 65.5, debt-to-equity 7.63) and notable insider selling — roughly 111,550 shares (~$46.5M) last quarter — raise potential downside risk.

Seagate Technology (NASDAQ:STX - Get Free Report) released its earnings results on Tuesday. The data storage provider reported $4.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.47 by $0.63, FiscalAI reports. Seagate Technology had a net margin of 19.59% and a negative return on equity of 936.38%. The business had revenue of $3.11 billion for the quarter, compared to analyst estimates of $2.94 billion. Seagate Technology updated its Q4 2026 guidance to 4.800-5.200 EPS.

Seagate Technology Stock Down 2.8%

STX stock traded down $16.83 during trading on Tuesday, reaching $579.03. The stock had a trading volume of 5,139,563 shares, compared to its average volume of 4,033,900. Seagate Technology has a one year low of $81.22 and a one year high of $607.89. The company has a quick ratio of 0.72, a current ratio of 1.12 and a debt-to-equity ratio of 7.63. The company's 50 day moving average is $441.29 and its two-hundred day moving average is $349.24. The company has a market capitalization of $126.27 billion, a price-to-earnings ratio of 65.50, a P/E/G ratio of 0.97 and a beta of 1.61.

Insider Activity

In other Seagate Technology news, EVP Ban Seng Teh sold 20,195 shares of the company's stock in a transaction dated Thursday, January 29th. The shares were sold at an average price of $442.29, for a total value of $8,932,046.55. Following the completion of the sale, the executive vice president directly owned 3,092 shares of the company's stock, valued at approximately $1,367,560.68. This represents a 86.72% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO William D. Mosley sold 20,000 shares of the company's stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $420.73, for a total transaction of $8,414,600.00. Following the completion of the sale, the chief executive officer directly owned 355,591 shares of the company's stock, valued at $149,607,801.43. The trade was a 5.32% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 111,550 shares of company stock valued at $46,476,441. 0.79% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of STX. Rakuten Securities Inc. grew its position in shares of Seagate Technology by 884.2% during the 2nd quarter. Rakuten Securities Inc. now owns 187 shares of the data storage provider's stock valued at $27,000 after acquiring an additional 168 shares during the period. Quarry LP bought a new position in shares of Seagate Technology during the 4th quarter valued at approximately $31,000. Palisade Asset Management LLC bought a new position in shares of Seagate Technology during the 3rd quarter valued at approximately $37,000. Larson Financial Group LLC grew its position in shares of Seagate Technology by 41.9% during the 3rd quarter. Larson Financial Group LLC now owns 166 shares of the data storage provider's stock valued at $39,000 after acquiring an additional 49 shares during the period. Finally, Birchwood Financial Partners Inc. bought a new position in shares of Seagate Technology during the 4th quarter valued at approximately $41,000. 92.87% of the stock is owned by institutional investors.

Key Headlines Impacting Seagate Technology

Here are the key news stories impacting Seagate Technology this week:

• Positive Sentiment: Major price-target raises and buy ratings from Wall Street (Bank of America, Cantor Fitzgerald and Wedbush) lift sentiment by signaling higher earnings/valuation expectations and structural HDD tightness. Wedbush Raises Price Target
• Positive Sentiment: Analysts and analysts’ notes point to sustained data-center demand for mass-capacity HDDs and nearline drives being fully booked — supporting upside to revenue and margins ahead of earnings. BofA Bullish on Seagate
• Positive Sentiment: Sector momentum/price action and bullish takeaways from earnings previews suggest STX could beat near-term estimates, reinforcing investor optimism. Zacks: STX Likely to Beat
• Positive Sentiment: Upbeat retail/market commentary (including bullish retail articles) points to continued investor interest driven by an expected HDD supply shortage and long-term demand tailwinds from AI/data center growth. The Fool Prediction on STX
• Neutral Sentiment: Broader storage-sector dynamics: strong NAND/SSD demand for AI (Micron, WDC) is lifting storage stocks overall, but SSD growth may compete with some HDD use cases — ambiguous for Seagate’s long-term mix. Micron NAND / SSD Demand
• Neutral Sentiment: Analyst/educational coverage and strategy videos highlight opportunities and risks around earnings volatility and options strategies — useful for traders but neutral for long-term fundamentals. Bull v. Bear: STX Trading Opportunities
• Negative Sentiment: Notes of caution: commentary that AI/data-center hardware spending could slow (citing CEO-level comments) introduces downside risk to demand outlook and could weigh on multiple storage names if budgets tighten. FXEmpire: AI Hype Meets Reality
• Negative Sentiment: Valuation and balance-sheet metrics are elevated (high P/E and leverage relative to history), which raises the bar for continuing gains and increases downside if growth guidance misses. Zacks: Valuation Caution

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on STX. Robert W. Baird upped their price objective on shares of Seagate Technology from $270.00 to $505.00 and gave the company an "outperform" rating in a report on Thursday, January 29th. The Goldman Sachs Group upped their target price on shares of Seagate Technology from $310.00 to $385.00 and gave the stock a "buy" rating in a report on Wednesday, January 28th. Rosenblatt Securities upped their target price on shares of Seagate Technology from $370.00 to $500.00 and gave the stock a "buy" rating in a report on Wednesday, January 28th. Barclays upgraded shares of Seagate Technology from an "equal weight" rating to an "overweight" rating and upped their target price for the stock from $425.00 to $625.00 in a report on Wednesday, April 22nd. Finally, BNP Paribas Exane upped their target price on shares of Seagate Technology from $430.00 to $530.00 and gave the stock an "outperform" rating in a report on Wednesday, February 4th. Twenty investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $535.58.

Seagate Technology Company Profile

Seagate Technology NASDAQ: STX is a global data storage company that designs, manufactures and sells a broad range of storage products and systems. The firm's product portfolio includes traditional hard disk drives (HDDs), solid-state drives (SSDs), hybrid storage devices and integrated storage systems aimed at enterprise, cloud, OEM and consumer markets. Seagate also provides services that support its hardware offerings, including data recovery and storage management solutions.

Seagate's products are used in a wide array of applications, from large-scale data centers and cloud infrastructure to desktop and portable consumer devices.

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