Circle Tuesday, Apr. 28, on your calendar because Seagate Technology Holdings plc (STX) has set the stage for its next big trigger. The surge in demand for high-capacity hard disk drives (HDDs) across artificial intelligence (AI) data centers and cloud infrastructure has lit a fire under STX stock, as hyperscalers double down on the massive storage required to train large language models (LLMs).
Seagate, a longtime leader in mass capacity data storage, has kept the momentum going as tightening supply and firm demand tilt the balance in its favor. BNP Paribas SA (BNPQY) Equity Research senior analyst Karl Ackerman pointed out that components like memory ICs and optical parts remain in short supply, yet he leans toward HDDs because they sit in a stronger demand position, and that view places Seagate in a sweet spot.
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Analysts across the Street have echoed the optimism, with Citigroup (C) pointing to solid demand tied to AI growth, while Morgan Stanley (MS) notes that HDD demand continues to climb and supply constraints could last through 2028, creating a supportive backdrop for Seagate.
On Apr. 14, Seagate confirmed it would report its fiscal Q3 2026 earnings after the closing bell on Tuesday, Apr. 28, and that led the stock to climb to a fresh 52-week high of $534.23 the same day. The momentum has carried forward as the stock is up 8.87% in the past five trading sessions, which now puts the spotlight firmly on what the company delivers next.
About Seagate Stock
For more than 45 years, Singapore-based Seagate Technology has delivered sustainable, high-performance storage at scale, cementing its role as a leader in mass capacity data storage while helping unlock the full potential of data.
With a market cap of $116 billion, the company designs and sells hard drives, solid-state drives, and storage systems that serve enterprise, personal, and gaming needs.
Over the past 52 weeks, Seagate’s shares have surged 622.8%, and the momentum has carried into this year with a 98.9% gain year-to-date (YTD). The last three months alone added 67.9%, and the past month contributed another 30.1%, keeping the upward trend intact.
www.barchart.com STX stock is currently trading at a premium, with valuations at 42.90 times forward adjusted earnings and 10.33 times sales, placing it well above industry benchmarks and reflecting investors’ willingness to pay for its growth and positioning.
In addition, the company returns capital to shareholders, offering an annual dividend of $2.96 per share, which translates to a yield of 0.57%. It paid its most recent dividend of $0.74 on Apr. 8 to shareholders on record as of March 25.
Seagate Surpasses Q2 Earnings
On Jan. 28, STX stock rallied 19.14% after the company posted Q2 fiscal 2026 results that comfortably cleared expectations on both revenue and earnings. Revenue rose 21.5% year-over-year (YOY) to $2.83 billion, beating the $2.75 billion estimate, while adjusted EPS came in at $3.11, up 53.2% from a year ago and ahead of the $2.84 forecast.
Non-GAAP operating income climbed to $901 million, reflecting a 67.5% increase YOY, and non-GAAP net income rose 62.1% to $702 million. Free cash flow surged 304.7% to $607 million, reaching its highest level in eight years, while cash reserves moved above $1 billion and total liquidity stood at $2.3 billion, strengthening the company’s financial position.
Moreover, capital spending totaled $116 million, representing about 4% of revenue, as the company kept its full-year fiscal 2026 outlook unchanged at 4% to 6%. For the upcoming quarter, Seagate expects fiscal Q3 fiscal year 2026 revenue of $2.9 billion, with a possible variation of $100 million in either direction, and non-GAAP diluted EPS of $3.40, with a margin of $0.20 on both sides.
On the other hand, analysts estimate Q3 fiscal year 2026 EPS to grow 94.6% YOY to $3.25. For the full fiscal 2026 year, they forecast the bottom line to rise 66.8% to $12.11, followed by a further 57.1% increase to $19.03 in fiscal year 2027.
What Do Analysts Expect for Seagate Stock?
The momentum has shifted in Seagate's favor. Erik Woodring at Morgan Stanley raised his price target from $468 to $582 and kept his “Overweight” rating unchanged. Asiya Merchant at Citigroup held on to her “Buy” call and increased STX stock’s price target from $480 to $595.
Samik Chatterjee at J.P. Morgan also read the room loud and clear and lifted his STX stock price target to $600 from $525, all while standing his ground with an “Overweight” stance.
Wall Street is taking a clear position and has backed the stock firmly, placing it in “Strong Buy” territory, where 19 out of 25 analysts have issued “Strong Buy” ratings, one has gone with a “Moderate Buy,” and five have stayed with “Hold” calls.
The stock has already moved past its average price target of $495.69, and with the Street High target of $700 still in sight, it now points to a potential upside of 27.8% from current levels.
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www.barchart.com On the date of publication, Aanchal Sugandh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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