Seagate Technology (STX) Q2 2026 Earnings
How Did STX Stock React to Q2 2026 Earnings?
S&P 500 over the same 30 days: −1.30%.
Did STX Beat Earnings? Q2 2026 Results
Yes. Seagate Technology reported Q2 2026 earnings of $3.11 a share on Jan 27, 2026, beating the $2.84 consensus estimate by 9.6%. Revenue was $2.8B against a $2.8B estimate.
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.
- 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
What Was Seagate Technology's Outlook in Q2 2026?
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
| Metric | Q2 2026 | Q2 2025 | Year over year |
|---|---|---|---|
| Revenue | $2.8B | $2.3B | +21.5% |
| Gross Profit | $1.2B | $812.0M | +44.8% |
| Operating Income | $843.0M | $488.0M | +72.8% |
| Net Income | $593.0M | $336.0M | +76.5% |
STX Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.