Seagate Technology Posts Strong Q3 Results, Analysts Remain Optimistic

Singapore-based Seagate Technology Holdings plc (STX) specializes in data storage technology and infrastructure solutions globally, including in the U.S. With a market capitalization of $22.3 billion, Seagate ranks among the largest manufacturers of hard disk drives (HDD) worldwide.

Stock Performance Overview

In the past year, Seagate’s stock performance has slightly underperformed compared to the broader market, though it did excel in 2025. Over the past 52 weeks, STX shares have gained 8.8% and 24.5% year-to-date (YTD), while the S&P 500 Index ($SPX) has risen 11.5% in the same period, experiencing a minor 60 basis points increase in 2025.

When compared to the Technology Select Sector SPDR Fund (XLK), Seagate’s performance has also lagged; XLK gained 10.1% over the past year while only slightly exceeding STX’s YTD performance with an 83 basis points increase.

Impressive Q3 Financial Results

Seagate’s stock surged by 11.6% during trading on April 29 following the release of its robust Q3 financial results. The company reported that demand for mass capacity storage was strong, driving revenue up 30.5% year-over-year to $2.2 billion, exceeding Wall Street’s expectations by 1.3%. Furthermore, improved margins led to an adjusted operating margin of 23.5%, significantly higher than the 11.1% reported in Q3 2024. This increase contributed to a remarkable 177% year-over-year rise in adjusted operating income, reaching $507 million. Adjusted net income soared by 473.2% to $407 million, with adjusted earnings per share (EPS) of $1.90, surpassing analyst consensus estimates considerably.

Future Projections and Analyst Ratings

Looking ahead, Seagate forecasts its Q4 revenues to reach $2.4 billion, with adjusted EPS anticipated at $2.40, reflecting significant year-over-year and sequential growth. The company maintains confidence in its ability to achieve sustainable growth beyond 2025, driven by strong industry fundamentals.

According to 18 analysts covering STX stock, the consensus rating is a “Moderate Buy,” based on 11 “Strong Buys,” one “Moderate Buy,” four “Holds,” and two “Strong Sells.” This configuration has shown stability in recent months.

On April 30, Barclays (BCS) analyst Tom O’Malley reiterated an “Equal Weight” rating on STX, increasing the price target from $80 to $90.

As of this writing, Seagate’s average price target stands at $109.88, indicating a modest 2.3% premium over current price levels. Conversely, the highest target of $140 suggests an impressive 30.3% upside potential.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.