Seagate Raises Growth Outlook to 20%, Shares Jump 17% Premarket
Seagate Technology stock jumped about 17% premarket after delivering third-quarter revenue of $3.11 billion and non-GAAP EPS of $4.10, beating estimates. Management raised long-term revenue growth outlook to at least 20% annually from low-to-mid-teens, citing ten straight cloud-customer growth periods and nearline storage supply locked through 2027.
1. Pre-Market Surge
Shares of Seagate Technology surged about 17% in premarket trading following the release of third-quarter results that beat consensus. The company reported revenue of $3.11 billion and non-GAAP earnings per share of $4.10, both above analyst projections, reflecting strong AI-related storage demand.
2. Upgraded Growth Outlook
Seagate lifted its long-term revenue growth guidance to at least 20% annually, up from the low-to-mid-teens previously forecast. Management cited its tenth consecutive quarter of cloud-customer growth as a key driver supporting the more aggressive outlook.
3. Capacity Visibility and Cloud Obligations
The company highlighted that its nearline storage capacity is almost fully allocated through 2027, providing rare revenue visibility in the HDD sector. Seagate also pointed to over $1.1 trillion in cloud performance obligations remaining with top providers, underscoring sustained AI infrastructure spending.