Seagate Sees 21.5% Q2 Growth, Guides $2.90B in Q3, Yields 0.81%
Seagate’s Q2 FY26 revenue rose 21.51% year-over-year to $2.83 billion, with Q3 guidance of $2.90 billion ± $100 million and a forward P/E of 21.98x. The company yields 0.81% via a $0.74 quarterly dividend and holds $459 million in shareholders’ equity after cutting debt by $684 million.
1. Strong Q2 Financial Results
Seagate delivered Q2 FY26 revenue of $2.83 billion, up 21.51% year-over-year and exceeding the $2.75 billion consensus. The forward P/E ratio stands at 21.98x, reflecting investor confidence in ongoing storage demand.
2. Q3 FY26 Guidance
Management projects Q3 revenue of $2.90 billion ± $100 million, indicating modest sequential growth and underscoring a stable market outlook for disk storage products.
3. Dividend Yield and Income Profile
The company maintains a quarterly dividend of $0.74 per share, translating to a 0.81% annual yield that appeals to income-focused investors while balancing reinvestment needs.
4. Balance Sheet Strength and Debt Cuts
Seagate ended the quarter with $459 million in shareholders’ equity, up from negative territory earlier in the year, and reduced total debt by $684 million over fiscal 2025 to bolster its financial resilience.