Key Highlights

  • Fiscal Q3 adjusted earnings per share reached $4.10, surpassing the $3.48 Wall Street consensus
  • Quarterly revenue totaled $3.11 billion, exceeding the $2.95 billion analyst forecast
  • Year-over-year revenue growth registered 44% compared to $2.16 billion in the prior year period
  • Fiscal Q4 outlook calls for $5.00 EPS and $3.45 billion revenue, both significantly above Street expectations
  • Non-GAAP gross margin expanded to 47.0% from 36.2% in the comparable quarter last year
  • Shares jumped more than 18% in extended trading, climbing to $687.00

Seagate Technology (STX) delivered impressive fiscal third quarter 2026 results, exceeding analyst projections across key metrics while issuing forward guidance that significantly outpaced Wall Street’s expectations.

The data storage giant reported adjusted earnings of $4.10 per share, comfortably clearing the consensus estimate of $3.48. Total revenue reached $3.11 billion, topping the $2.95 billion forecast and representing a substantial 44% increase from the $2.16 billion recorded in the year-ago quarter.

Shares closed regular trading at $579.03 on Tuesday before climbing to $687.00 during after-hours activity — representing an 18% surge.


STX Stock Card
Seagate Technology Holdings plc, STX

The company’s net income climbed to $748 million during the quarter, up significantly from $340 million in the same period last year. GAAP gross margin measured 46.5%, while the non-GAAP figure hit 47.0%, marking a considerable expansion from the 36.2% posted in the prior year quarter.

Seagate produced $1.1 billion in operating cash flow alongside $953 million in free cash flow during the three-month period. The performance stands out particularly given the company simultaneously reduced debt by $641 million.

Shareholder returns totaled $191 million through combined dividend payments and share repurchases. The board approved a quarterly cash dividend of $0.74 per share, scheduled for July 7, 2026 payment to shareholders of record as of June 24, 2026.

CEO Dave Mosley characterized the period as delivering “record margin performance” while highlighting the company’s generation of “close to $1 billion in free cash flow.”

Forward Outlook Drives After-Hours Rally

The primary catalyst behind the extended-hours surge came from Seagate’s fiscal fourth quarter guidance. The company projected revenue of $3.45 billion, plus or minus $100 million, compared to the Street consensus of $3.15 billion — representing roughly 9% upside at the midpoint.

Adjusted EPS guidance for Q4 landed at $5.00, plus or minus $0.20, versus analyst estimates of $3.97. The midpoint represents a 26% premium over Wall Street’s forecast.

Management noted the outlook incorporates minimal anticipated impact from tariffs and current geopolitical dynamics.

Artificial Intelligence Fueling Storage Expansion

The company attributed much of its momentum to artificial intelligence applications. [[LINK_START_3]]Seagate[[LINK_END_3]] emphasized that expanding AI workloads continue accelerating data creation rates, which drives sustained long-term demand for storage capacity solutions.

This strategic positioning resonated strongly with investors and helped validate the company’s growth trajectory.

Over the trailing twelve months, STX shares have appreciated approximately 610%, positioning the stock among the top performers within the technology hardware sector.

The equity’s 52-week trading range spans from $77.56 to $592.84. Before Tuesday’s after-hours movement, shares were already trading near the upper boundary of that range.

According to Benzinga’s stock evaluation metrics, Seagate demonstrates positive price momentum across short-, medium-, and long-term horizons.

The combination of $953 million in quarterly free cash flow generation and $641 million in debt reduction underscores ongoing balance sheet improvement.