Overview
- Seagate posted fiscal Q1 adjusted EPS of $2.61 on revenue of about $2.63 billion, with gross margins near 40% and cash from operations of $532 million generating $427 million in free cash flow.
- Guidance topped forecasts with Q2 revenue projected at $2.70 billion plus or minus $100 million and adjusted EPS around $2.75 per share.
- CEO Dave Mosley said high-capacity cloud hard-drive production is largely contracted through 2026 with clear visibility into 2027, attributing demand to AI elevating the value of data and storage.
- Shares hit fresh highs after the report and are up roughly 160% this year, as analysts including Rosenblatt, Barclays and Wedbush lifted targets or reiterated positive ratings.
- Seagate emphasized scaling capacity by increasing areal density via HAMR rather than adding manufacturing, while peer Western Digital rallied and later beat on Q1 results, issued better-than-expected guidance, and raised its dividend.