Seagate Forecasts Q4 Revenue of $3.45B, Shares Jump 16% on AI Surge
Seagate forecast fourth-quarter revenue of $3.45 billion ±$100 million, beating $3.16 billion estimates, driving its shares up 16% in after-hours trading. Western Digital, Micron and SanDisk gained 10%, 3% and 4% respectively, adding roughly $60 billion to their combined market value as enterprise AI spending strains storage capacity through 2026.
1. Forecast Exceeds Expectations
Seagate projected fourth-quarter revenue of $3.45 billion plus or minus $100 million, surpassing consensus estimates of $3.16 billion and signaling continued strength in enterprise spending.
2. Stock Market Reaction
Shares of Seagate climbed 16% in after-hours trading, while Western Digital, Micron and SanDisk rose 10%, 3% and 4% respectively, collectively adding about $60 billion to their market valuation.
3. AI Demand Boosts Storage
Companies are accelerating investments in AI infrastructure and high-bandwidth memory to support model training and data processing, driving heightened demand for data drives and storage equipment.
4. Capacity Constraints Outlook
Executives report that manufacturing allocations are sold out through calendar 2026, underscoring tight supply dynamics and potential pricing power for storage hardware providers.