Quick Read
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STX delivered 44% income growth and $4.10 EPS as CEO Dave Mosley raised the multi-year growth goal to at least 20%.
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STX pays almost 5 instances WDC’s quarterly dividend ($0.74 vs. $0.15) and outgrows PSTG while operating working margins more than double.
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Act now: the analyst who called NVIDIA in 2010 just named his prime 10 AI shares — and Seagate Technology did not make the cut. Grab the names FREE immediately.
Seagate Technology (NASDAQ:STX) is one of the sole-source picks-and-shovels suppliers to hyperscalers that has already contracted nearline capability nearly totally through calendar 12 months 2027. Here are 3 causes why Seagate could be price a nearer look forward of the company’s This fall earnings on July 28.
3 Numbers That Make Seagate Impossible to Ignore
Growth is accelerating, not decaying. Fiscal Q3 income landed at $3.11 billion, up 44.07% 12 months over 12 months, beating consensus by 5.22%. Non-GAAP EPS of $4.10 cleared the $3.506 estimate by 16.94%. Management then guided This fall to $3.45 billion in income and $5.00 in EPS at the midpoint, and CEO Dave Mosley raised the multi-year income growth goal from low- to mid-teens to a minimal of 20% over the next few years.
The money movement is investment-grade. Free money movement hit $953 million, up 341.2% 12 months over 12 months, on a 31% free money movement margin. Seagate retired $641 million of debt in the quarter, pushed internet leverage to 0.7x, earned an investment-grade improve from Fitch, and raised the quarterly dividend to $0.74 per share.
The catalyst is seen on paper. The prime three cloud service suppliers have almost doubled their remaining efficiency obligations to $1.1 trillion. Seagate’s Mozaic 4 HAMR drives ship up to 44 terabytes per drive, over 30% more capability than first-generation Mozaic. Polymarket merchants assign a 93.5% probability that This fall laborious drive exabyte shipments will exceed 190.
Act now: the analyst who called NVIDIA in 2010 just named his prime 10 AI shares — and Seagate Technology did not make the cut. Grab the names FREE immediately.
The Bottom Line: Seagate’s AI Demand Is Locked In Through 2027
The largest risk immediately is that data-center storage demand finally slows. However, Seagate has already booked almost all of its out there nearline capability through 2027, while profitability has improved for 12 consecutive quarters.
Wall Street stays bullish, with 21 buy scores, three holds, and only one promote. Analysts’ average price goal of $1,008.61 also implies 18.4% upside from the present price of $851.69. Investors can gather Seagate’s rising dividend while its contracted hyperscaler demand supports continued income and earnings growth.
Act now: the analyst who called NVIDIA in 2010 just named his prime 10 AI shares — and Seagate Technology did not make the cut. Grab the names FREE immediately.
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