Seagate’s Q3 Earnings Are Out: Here are the Need to Know Numbers

It’s now 5 p.m. and Seagate shares are up 14% as the company begins its conference call. We’ll be winding down this live blog, but make sure to come back to 24/7 Wall St. tomorrow for more coverage on the company’s blowout earnings. You can also scroll below to see past updates.

Seagate shares are up 12.6% as of 4:25 p.m. ET.

As we’ve covered, those gains are thanks to earnings that far surpassed expectations. Margins came in much stronger than Wall Street expected.

We’re also covering Bloom Energy’s earnings tonight, and that company delivered as well. Bloom Energy shares are up 10% after the company delivered revenue of $751 million against Wall Street’s expectations of $540 million.

Bloom also raised its full-year guidance.

It’s another good night for investors in the AI infrastructure trade.

Seagate shares have been running after reporting Q3 earnings, it appears their gains have stalled after hitting 9%.

That’s a tremendous after-hours movement for a stock that’s already up more than 100% year-to-date before tonight’s after-hours action.

Normally stocks that have seen this much momentum struggle to see large movements after reporting earnings, but Seagate’s report was just that good. 

Here’s a couple of quotes from Seagate CEO Dave Mosley on the company’s extraordinary Q3 earnings:

“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, Seagate’s chair and chief executive officer.

“We believe Seagate is entering a new era of structural growth as AI applications amplify data creation and support sustained storage demand. Our areal density-driven product strategy enables us to deliver higher-capacity, energy- and capital-efficient storage at scale. Through disciplined execution, we are strategically positioned to capture these opportunities, and drive profitable growth and long-term value creation,” Mosley concluded.

Wall Street was expecting $762 million in free cash flow last quarter, but Seagate easily cleared that bar. The company delivered $953 million in the quarter.

Guidance calls for $3.5 billion in revenue next quarter, significantly ahead of Wall Street’s expectations of $3.1 billion.

In addition, the company is guiding to $5 in EPS, ahead of Wall Street’s expectations of $3.92.

This is an across-the-board blowout for Seagate. 

We’ve now had a few minutes for Wall Street to digest Seagate’s earnings, and shares are still rising. They are now up 8%.

One of the key areas we said to watch was margin expansion, with the company reporting EPS of $4.10 (versus expectations of $3.50), versus a revenue beat that’s a much smaller percentage. This shows Seagate is continuing to expand margins ahead of schedule. 

The closing bell is about to ring, Seagate shares are down 2.6% amidst a broader sell-off in AI stocks. Rival Western Digital is down a similar amount today.

We expect Seagate to report earnings at 4:05 p.m. ET. As soon as they report, we’ll update this live blog with news and analysis. 

We detailed earlier that Wall Street is expecting $3.50 in adjusted EPS and $2.957 billion in revenue when Seagate reports Q3 earnings tonight. Both those numbers are up sequentially from Fiscal Q2.

Some other areas to watch:

• Gross Margins: Wall Street expects 44.52% gross margins, up from 42.2% the quarter prior. Looking ahead to Q4, Wall Street expects gross margins to rise once again to 45.61%
• Guidance: Wall Street expects $3.97 in adjusted EPS in Q4 on $3.151 billion in sales
• Free Cash Flow: Expectations for free cash flow this quarter stand at $762.1 million.