Seagate Technology PLC (NASDAQ:STX) delivered third-quarter results that comfortably exceeded analyst expectations, reporting adjusted earnings per share of $4.10 and revenue of $3.11 billion—well above consensus forecasts of $3.48 and $2.95 billion. Revenue also jumped 44% year over year from $2.16 billion in the same quarter last year.
Shares of the data storage group surged more than 17% in premarket trading on Wednesday, driven by fourth-quarter guidance that came in significantly ahead of market expectations.
Seagate projected adjusted EPS of $5.00, plus or minus $0.20, compared with analyst estimates of $3.97. The midpoint of $5.00 represents a 26% upside to consensus. Revenue for the fourth quarter is expected to reach $3.45 billion, plus or minus $100 million, versus forecasts of $3.15 billion—putting the midpoint 9% above expectations.
“Seagate delivered outstanding March quarter results, exceeding the high end of our revenue and EPS guidance, achieving record margin performance, and generating close to $1 billion in free cash flow,” said Dave Mosley.
The company reported a non-GAAP gross margin of 47.0%, up from 36.2% a year earlier. Operating cash flow totaled $1.1 billion, while free cash flow reached $953 million during the quarter. Seagate also reduced its debt by approximately $641 million and returned $191 million to shareholders through dividends and share buybacks.
“We see incremental gross margins remaining strong, and see continued growth in pricing, margins and cash flow throughout F27,” said Wamsi Mohan.
He maintained a Buy rating on the stock, pointing to “secular demand from Cloud, revenue & margin improvement and path to higher capacity HAMR HDDs.”
The company’s board declared a quarterly dividend of $0.74 per share, payable on July 7, 2026, to shareholders on record as of June 24, 2026.