Seagate Forecasts $3.45B Q4 Revenue, EPS of $5.00 on AI Demand
Seagate projected Q4 revenue of $3.45 billion ±$100 million and adjusted EPS of $5.00 ±$0.20, exceeding consensus forecasts of $3.16 billion and $3.97 EPS, after Q3 results beat estimates with $4.10 EPS on $3.11 billion revenue. It also raised its long-term revenue growth outlook to at least 20%, driven by surging AI storage demand.
1. Q3 Earnings Beat Expectations
Seagate reported Q3 adjusted EPS of $4.10, surpassing estimates of $3.50, on revenue of $3.11 billion versus consensus of $2.95 billion. Strong data center demand, accounting for 80% of sales and up 55% year over year, drove the outperformance.
2. Robust Q4 Guidance Signals Continued Strength
The company projected Q4 revenue of $3.45 billion plus or minus $100 million and adjusted EPS of $5.00 plus or minus $0.20, exceeding forecasts of $3.16 billion and $3.97 EPS. The upbeat outlook indicates sustained enterprise investment in storage hardware.
3. AI-Driven Growth Underpins Long-Term Outlook
Seagate raised its long-term revenue growth target to at least 20% annually, citing exponential data growth from AI model training and high-bandwidth memory needs. Management highlighted tightening memory chip supplies, which is boosting demand for physical hard drives.