Seagate Soars 7% on Earnings Beat and Bullish Outlook as Storage Demand Accelerates

Seagate Technology (NASDAQ:STX) shares surged more than 7% in pre-market today after the company delivered strong third-quarter results and issued a better-than-expected forecast, signaling robust momentum in the data storage market.

For the quarter, the company posted adjusted earnings of $1.90 per share, beating analyst expectations of $1.73. Revenue reached $2.16 billion, also ahead of the $2.12 billion consensus and representing a sharp 30.5% increase from the prior year.

The results were fueled by sustained demand for mass capacity storage solutions and improvements to the company’s operating structure. Seagate’s gross margin rose to 36.2%, a significant jump from 26.1% a year earlier, reflecting improved efficiency and pricing power.

Looking ahead, Seagate offered an upbeat fourth-quarter outlook, guiding for adjusted EPS between $2.20 and $2.60—well above the $2.05 analyst estimate. Revenue is expected to range from $2.25 billion to $2.55 billion, with the midpoint of $2.40 billion exceeding Street forecasts of $2.28 billion.