Seagate Technology has issued an upbeat outlook for Q4, driven by sustained demand for storage solutions linked to the AI boom. The group expects revenue of approximately $3.45bn, plus or minus $100m, compared to a market estimate of $3.16bn. Adjusted earnings per share are projected at around $5, plus or minus 20 cents, significantly higher than the $3.97 anticipated by analysts.
This momentum comes amid increased corporate spending as firms bolster their infrastructure to meet the data processing requirements generated by AI. Rising memory chip prices are also supporting the broader sector. Following the announcement, Seagate shares surged more than 13% in early Wall Street trading, lifting other industry players in its wake, with Western Digital up 8%, SanDisk up 7%, and Micron Technology gaining approximately 3%.
In Q3, Seagate had already posted better-than-expected results, with revenue reaching $3.11bn against the $2.96bn forecast. Earnings per share hit $3.27, compared to $1.57 a year earlier, illustrating a sharp improvement in profitability and confirming the group's favorable momentum in a rapidly transforming market.
Seagate Technology Holdings plc is the world's leading manufacturer of data storage systems. Its products are sold under the Seagate, LaCie, Lyve, MACH.2, and Mozaic brands. Net sales break down by family of products as follows:
- mass data storage systems and platforms (81%): designed for data centers, cloud storage servers, and large cloud infrastructures.
- internal hard drives and external storage systems (12%): hard disk drives (HDDs) and solid-state drives (SSDs) designed for PCs, laptops, consumer electronics, etc.
- other (7%): including data recovery, restoration, and migration services.
Net sales break down by channel of distribution between original equipment manufacturers (80%), resellers and enterprises (11.7%), and independent distributors (8.3%).
At June 27, 2025, the group had 7 production sites located in the United States, Thailand (2), Ireland, Malaysia, Singapore, and China.
Net sales are distributed geographically as follows: the United States (48.5%), Singapore (41.3%), and the Netherlands (10.2%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite) and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be carried out. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of rankings based on the following ratings: Returns (Composite), Profitability (Composite) and Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully read the associated descriptions.
-
ESG MSCI
ESG MSCI
The MSCI ESG score assesses a company’s environmental, social, and governance practices relative to its industry peers. Companies are rated from CCC (laggard) to AAA (leader). This rating helps investors incorporate sustainability risks and opportunities into their investment decisions.
