Companies /Technology

Seagate Technology Holdings Plc

NASDAQ: STX Computer Hardware
$808.54
▼ $8.10 (−0.99%) today
Markets closed · 6:47pm ET

Q2 2026 Earnings

Reported Jan 27, 2026, 4:08pm ET · SEC source
$3.11
Beat +9.58%
EPS · est. $2.84
$2.8B
Beat +2.55%
Revenue · est. $2.8B
−13.0%
Trailing market
STX vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+8%+16%+24%Jan 27Jan 28report 4:08pm ETearnings−0.1%+23.3%
0+8%+16%+24%Jan 27Jan 28earnings−0.1%+23.3%
STX +23.3%S&P 500 −0.1%
0+8%+16%+24%Jan 27Jan 28report 4:08pm ETearnings+0.3%+23.3%
0+8%+16%+24%Jan 27Jan 28earnings+0.3%+23.3%
STX +23.3%NASDAQ +0.3%
0+9%+18%+27%Jan 26Feb 4report 4:08pm ETearnings−1.2%+15.2%
0+9%+18%+27%Jan 26Feb 4earnings−1.2%+15.2%
STX +15.2%S&P 500 −1.2%
0+9%+18%+27%Jan 26Feb 4report 4:08pm ETearnings−4.0%+15.2%
0+9%+18%+27%Jan 26Feb 4earnings−4.0%+15.2%
STX +15.2%NASDAQ −4.0%
+19.14%
Day of report
+0.82%
Next session
−5.49%
One week
−14.32%
30 days

S&P 500 over the same 30 days: −1.30%.

Did STX Beat Earnings? Q2 2026 Results

Seagate Technology delivered a strong fiscal second quarter of 2026, posting non-GAAP diluted EPS of $3.11 against the $2.84 consensus estimate, a beat of 9.58%, while revenue of $2.83 billion cleared expectations by 2.55% and rose 21.5% year over year. The standout driver behind the results was a dramatic expansion in profitability, with non-GAAP gross margin climbing to 42.2% from 35.5% a year ago and non-GAAP operating margin reaching 31.9% versus 23.1% in the prior-year period, reflecting both disciplined cost execution and accelerating demand from data centers seeking high-capacity storage at scale. CEO Dave Mosley pointed to the ongoing ramp of Seagate's HAMR-based Mozaic product line as central to that margin story, with AI-driven data workloads reinforcing durable customer appetite for exabyte-scale solutions. Free cash flow surged to $607 million from $150 million a year ago, underscoring the operational momentum. For fiscal Q3 2026, Seagate guided revenue of $2.90 billion and non-GAAP EPS of $3.40, both at the midpoints, suggesting management expects the positive trajectory to continue, a view broadly shared by peers also benefiting from storage sector tailwinds.

Key Takeaways
  • Strong operational execution
  • Durability of data center demand
  • Ongoing ramp of HAMR-based Mozaic products
  • Gross margin expansion to 42.2% non-GAAP from 35.5% year-over-year
  • Operating margin expansion to 31.9% non-GAAP from 23.1% year-over-year

“Seagate's December quarter results exceeded our expectations on both the top and bottom line, setting new records for gross margin, operating margin, and non-GAAP EPS. This performance highlights our team's strong operational execution, the durability of data center demand, and the ongoing ramp of our HAMR-based Mozaic products.”

Seagate Technology CEO, on the earnings call

Forward Guidance & Outlook

For fiscal Q3 2026, Seagate guided revenue of $2.90 billion, plus or minus $100 million, and non-GAAP diluted EPS of $3.40, plus or minus $0.20. Guidance includes the estimated net dilutive impact from the Exchangeable Senior Notes due 2028 and minimal expected impact from global tariff policies announced as of the date of the release. Non-GAAP diluted EPS guidance excludes estimated share-based compensation expenses of $0.23 per share.

STX YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$800.0M$1.6B$2.4B$2.3B$2.8BRevenue$812.0M$1.2BGross Profit$488.0M$843.0MOperating Income$336.0M$593.0MNet Income
$0$800.0M$1.6B$2.4BRevenueGross ProfitOperating IncomeNet Income

STX Revenue by Segment

Hard Drive
Mass Capacity
Legacy
Other

Figures from SEC filings and company reports. Not investment advice.