Seagate Beats Q3 and Guides Q4 Revenue $3.45B, EPS $5.00
Seagate posted Q3 adjusted EPS of $4.10 and revenue of $3.11 billion, surpassing consensus forecasts of $3.97 and $2.95 billion and delivering 44% year-on-year revenue growth. It projected Q4 revenue of $3.45 billion ±$100 million, 9% above analyst estimates, and EPS of $5.00 versus $3.97 consensus, driving a 12.4% after-hours stock rise.
1. Third Quarter Outperformance
Seagate delivered adjusted EPS of $4.10 and revenue of $3.11 billion, exceeding estimates of $3.97 and $2.95 billion. Revenue jumped 44% year-on-year, gross margin rose to 47.0% from 36.2% a year earlier, and operations generated $1.1 billion in cash flow and $953 million in free cash flow, enabling $641 million of debt repayment and $191 million returned to shareholders.
2. Strong Q4 Guidance
The company forecast Q4 revenue of $3.45 billion ±$100 million versus a $3.15 billion consensus and adjusted EPS of $5.00 ±$0.20 compared with a $3.97 consensus, implying a 26% EPS premium. The board also declared a quarterly cash dividend of $0.74 per share, payable in July.
3. Market Reaction
Shares rose 12.4% in after-hours trading following the results and guidance, while peers in the storage sector also saw double-digit gains. Investors cited confidence in sustained AI-driven storage demand and capacity constraints through 2026 as key drivers of the rally.