Seagate Technology (STX) News Today

Seagate Technology Holdings PLC (NASDAQ: STX) shares have decreased despite a strong fiscal first-quarter report, as investors focused on slowing shipment growth, elevated expectations and valuation concerns rather than the company’s headline earnings beat.

• Positive Sentiment: Seagate reported fiscal Q1 revenue of $4.23 billion, up 61% year over year, and adjusted earnings of $7.68 per share, exceeding Wall Street estimates. Data-center revenue rose 63%, while strong pricing, AI-related demand and HAMR adoption drove record profitability and cash flow. Seagate Technology Reports Fiscal First Quarter 2027 Financial Results
• Positive Sentiment: Management projected approximately $4.8 billion of revenue and $9.20 in non-GAAP EPS for the December quarter, above consensus expectations. Nearline capacity is largely committed under supply agreements through 2028, with some commentary pointing to commitments extending through 2030. Seagate expects December-quarter revenue and EPS
• Positive Sentiment: Seagate raised its quarterly dividend 2.7% to $0.76 per share and continues to benefit from AI infrastructure demand. Several analysts still see substantial upside, including buy or overweight ratings from Citigroup, Wells Fargo, TD Cowen and Morgan Stanley. Seagate Q1 earnings call highlights
• Neutral Sentiment: Analysts broadly remain constructive on Seagate Technology, but multiple firms lowered their price targets after the results. Citigroup reduced its target to $1,050, Wells Fargo to $820 and TD Cowen to $900; Wedbush maintained an outperform rating with a $1,000 target.
• Negative Sentiment: The market appears concerned that exabyte shipment growth and future margin expansion may slow, particularly after STX’s sharp prior rally. The stock’s high valuation left little room for disappointment, prompting profit-taking and a downgrade from Summit Insights to “hold”; Susquehanna also cut its rating to “neutral.” Seagate pullback on slower exabyte growth