TLDR
- Seagate reported Q3 adjusted EPS of $4.10 vs. $3.48 estimate, and revenue of $3.11B vs. $2.95B expected
- Revenue jumped 44% year-over-year from $2.16B
- Q4 guidance of $5.00 EPS and $3.45B revenue both topped Wall Street forecasts
- Non-GAAP gross margin hit 47.0%, up from 36.2% a year ago
- STX surged over 18% in after-hours trading, reaching $687.00
Seagate Technology (STX) posted a strong fiscal Q3 2026, topping analyst estimates on both earnings and revenue, then backed it up with Q4 guidance that left Wall Street’s forecasts in the dust.
SEAGATE $STX Q3â26 EARNINGS HIGHLIGHTS
đš Revenue: $3.1B (Est. $3.0B) đ˘; +44% y/y
đš EPS: $4.10 (Est. $3.50) đ˘; +116% y/y
đš Gross Margin: 47.0% (Est. 44.6%) đ˘
đš FCF: $953M
đš FQ4 Revenue Guide: $3.5B (Est. $3.1B) đ˘; +41% y/yQ4 Guide:
đš Revenue: $3.5B (Est. $3.1B) đ˘;⌠pic.twitter.com/2QoYnrwY4j— Wall St Engine (@wallstengine) April 28, 2026
Adjusted EPS came in at $4.10, well above the $3.48 consensus. Revenue hit $3.11 billion, beating the $2.95 billion estimate and rising 44% from $2.16 billion in the same quarter last year.
The stock closed the regular session at $579.03 on Tuesday before jumping to $687.00 in after-hours trading â a move of over 18%.
Seagate Technology Holdings plc, STX
Net income rose to $748 million, compared to $340 million a year ago. GAAP gross margin was 46.5%, while non-GAAP gross margin reached 47.0%, up sharply from 36.2% in the prior year period.
Seagate generated $1.1 billion in operating cash flow and $953 million in free cash flow during the quarter. That’s a strong result for a company that also retired $641 million in debt in the same period.
The company returned $191 million to stockholders through dividends and buybacks. The board declared a quarterly cash dividend of $0.74 per share, payable July 7, 2026, to stockholders of record as of June 24, 2026.
CEO Dave Mosley called it a quarter of “record margin performance,” adding that the company generated “close to $1 billion in free cash flow.”
Q4 Guidance Far Exceeds Estimates
The real fuel behind the after-hours pop was the forward outlook. Seagate guided for Q4 revenue of $3.45 billion, plus or minus $100 million, against a consensus of $3.15 billion â a 9% beat at the midpoint.
Q4 adjusted EPS guidance came in at $5.00, plus or minus $0.20, versus the $3.97 analyst estimate. That’s a 26% premium to what the Street was expecting.
Management flagged that the outlook assumes minimal impact from tariffs and current geopolitical conditions.
AI Demand Driving Storage Growth
Seagate pointed to AI as a key driver. The company said increasing AI workloads are accelerating data creation, which in turn lifts long-term demand for storage capacity.
That narrative helped frame the revenue growth story â and markets clearly bought in.
Over the past 12 months, STX has gained roughly 610%, making it one of the stronger performers in the tech hardware space.
The stock’s 52-week range ran from $77.56 to $592.84. Prior to Tuesday’s after-hours move, it was already trading near the top of that range.
Seagate’s price trend is positive across short-, medium-, and long-term timeframes, according to Benzinga’s stock rankings.
The company’s Q3 free cash flow of $953 million and debt retirement of $641 million point to a balance sheet that continues to strengthen.
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