Seagate Price Target Rises to $475 on Q3 Revenue Beat and Strong Guidance
Mizuho raised its price target on Seagate to $475 from $440, maintaining an Outperform rating. Seagate posted December-quarter revenue of $2.83 billion (+7% sequential, +22% year-over-year), 42.2% non-GAAP gross margin, $3.11 EPS, and guided March-quarter revenue of $2.9 billion ±$100 million with EPS of $3.40 ±$0.20.
1. Price Target Increase
Mizuho lifted its price target on Seagate to $475 from $440 and reiterated an Outperform rating, highlighting sustained earnings momentum and favorable mass-capacity storage demand.
2. December-Quarter Financial Performance
Seagate reported $2.83 billion in revenue for the December quarter, up 7% sequentially and 22% year-over-year, with non-GAAP gross margin expanding to 42.2% (+210 basis points) and non-GAAP EPS reaching $3.11 (+19%), all setting new records.
3. March-Quarter Guidance and Outlook
The company forecasted March-quarter revenue of $2.9 billion ±$100 million (implying roughly 34% year-over-year growth at midpoint), non-GAAP EPS of $3.40 ±$0.20, and an operating margin approaching the mid-30% range, expecting continued sequential improvement through calendar 2026.