Seagate Technology Holdings PLC (NASDAQ:STX) shares rose about 2% on Wednesday after the data storage company reported fiscal fourth quarter results that exceeded Wall Street expectations on both earnings and revenue and issued guidance that pointed to continued momentum.
For the quarter ended July 3, Seagate reported non-GAAP earnings of $5.71 per diluted share, ahead of analysts' estimates of $5.09.
Revenue increased to $3.63 billion, topping the consensus forecast of $3.48 billion.
On a GAAP basis, diluted earnings per share were $5.58. GAAP gross margin was 52.3%, while non-GAAP gross margin came in at 52.7%.
The company generated $1.3 billion in cash flow from operations during the quarter and $1.1 billion in free cash flow. Seagate also retired $302 million in debt and returned $283 million to shareholders through dividends and share repurchases.
For the full fiscal year 2026, Seagate reported revenue of $12.2 billion, GAAP diluted earnings per share of $13.90 and non-GAAP diluted earnings per share of $15.58.
"Seagate's strong fourth quarter exceeded our expectations for revenue and non-GAAP EPS, capping a fiscal 2026 in which we grew annual revenue 34%, delivered record profitability, and generated a record $3.1 billion in free cash flow," Seagate CEO Dave Mosley said in a statement.
"Our performance is being driven by robust cloud data center demand and disciplined execution, and we see the momentum continuing in 2027," Mosley added.
Looking ahead, Seagate pointed to continued long-term demand for mass-capacity storage driven by artificial intelligence workloads.
"As AI accelerates data generation and its value, we see durable long-term demand for mass capacity storage," Mosley said.
"Seagate is well positioned to address strengthening exabyte demand through our Mozaic platform and differentiated HAMR technology roadmap, enabling customers to scale efficiently while supporting our ability to drive profitable growth and value creation."
