Seagate Technology Holdings plc (STX) is set to report its third-quarter fiscal 2026 earnings on April 28, with earnings per share expected at $3.50, marking an 84.2% increase year-over-year. The revenue estimate stands at $2.94 billion, anticipating a 36.3% growth compared to the previous year. During the same period, Seagate forecasts revenues between $2.8 billion and $3.0 billion, with non-GAAP earnings expected around $3.40 per share.
Seagate has consistently beaten earnings estimates in the past four quarters, averaging an 8.4% surprise. The company is benefiting from robust demand in data center markets, and it expects continued growth due to long-term agreements with major cloud customers. Seagate’s capacity for nearline drives is fully booked through 2026, responding to increasing demands driven by AI and cloud data services.
Despite its $1.05 billion in cash against $4.5 billion in long-term debt, Seagate projects improvement in net leverage and cash flow, with operating margins expected to rise to around 30%. Over the past year, STX stock has surged 613.6%, outperforming the S&P 500 and competitors like Micron Technology and Advanced Micro Devices.
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