Seagate Technology Holdings Plc
Q3 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.60%.
Did STX Beat Earnings? Q3 2026 Results
Seagate Technology delivered a standout fiscal third quarter of 2026, with results that cleared Wall Street's bar by a wide margin and sent shares surging roughly 13% in after-hours trading. The hard disk drive maker posted adjusted EPS of $4.10, beating the $3.50 consensus estimate by 17.13%, while revenue climbed 44.1% year over year to $3.11 billion, ahead of the $2.96 billion analysts had expected. The driving force behind the expansion was a sharp improvement in margins, with non-GAAP gross margin widening to 47.0% from 36.2% a year ago, reflecting favorable product mix and areal density-driven efficiencies tied to Seagate's HAMR-based Mozaic platform. Cash generation was equally impressive, with free cash flow reaching $953.00 million compared to $216.00 million in the year-ago period, enabling Seagate to retire roughly $641.00 million in debt during the quarter. Looking ahead, management guided fiscal Q4 revenue of $3.45 billion and non-GAAP EPS of $5.00, citing sustained AI-driven storage demand as a continued tailwind.
- AI applications amplifying data creation and supporting sustained storage demand
- Areal density-driven product strategy delivering higher-capacity, energy- and capital-efficient storage
- Significant gross margin expansion from 35.2% to 46.5% GAAP year-over-year
- Strong operating cash flow generation of $1.1 billion in the quarter
“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.”
Seagate Technology CEO, on the earnings call
Forward Guidance & Outlook
For fiscal Q4 2026, Seagate guides revenue of $3.45 billion, plus or minus $100 million, and non-GAAP diluted EPS of $5.00, plus or minus $0.20. Guidance includes the estimated net dilutive impact from Exchangeable Senior Notes due 2028 and assumes minimal expected impact from global tariff policies and/or the current conflict in the Middle East as of the release date. Non-GAAP diluted EPS guidance excludes estimated share-based compensation expenses of $0.23 per share.
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Figures from SEC filings and company reports. Not investment advice.