Live: Will Seagate (STX) Pop After Q1 Earnings?

Seagate (Nasdaq: STX) shares are up 4.46% as of 4:42 p.m. ET. Here’s a quick review of their Fiscal Q1 earnigns along with details on their conference call at 5 p.m. ET.

The Big Picture

Both Seagate’s EPS and revenue beat Wall Street’s expectations.

• EPS of $2.61 (beats estimate of $2.40)
• Revenue of $2.63B (beats estimates of $2.55B)

Guidance for next quarter is $2.7 billion at the midpoint, which tops Wall Street’s estimate of $2.67 billion.

CEO Dave Mosley was very positive on the quarter, saying:

“With clear visibility into sustained demand strength, we are ramping shipments of our areal density-leading Mozaic HAMR products, which are now qualified with five of the world’s largest cloud customers. These products address customers’ performance, durability and TCO needs at scale to continue supporting demand for existing use cases such as social media video platforms as well as growth driven by new AI applications. AI is transforming how content is being consumed and generated, increasing the value of data and storage and Seagate is well positioned for continued profitable growth.”

Conference Call Comes Next 

Want to register for Seagate’s conference call at 5 p.m. ET? You can register by clicking here.

STX delivered a strong start to fiscal Q1 26 with revenue up 21.3% to $2.63 B and net income surging 80% to $549 M. Gross profit jumped 45% and operating income climbed 72%, while operating cash flow leapt 460%. Cash balances declined 10.3%.

Dave Mosley said, “Seagate delivered strong September quarter results, with revenue growth of 21% year-over-year and non-GAAP EPS exceeding the high end of our guided range,” underscoring a very bullish view on the team’s execution and customer demand.

He added that Seagate is ramping shipments of its areal density-leading Mozaic HAMR products—now qualified with five of the world’s largest cloud customers—and sees AI-driven data growth as a catalyst for continued profitable growth.

Here are all the main figures you need to know from Seagate’s earnings release tonight:

STX | Seagate Technology Q1’26 Earnings Highlights:

• Adj. EPS: $2.61 [✅]; UP +65% YoY
• Revenue: $2.63B [✅]; UP +21% YoY
• Adj. Gross Margin: 40.1% [✅]; UP +68 bps YoY
• Net Income: $0.55B [✅]; UP +80% YoY
• Free Cash Flow: $0.43B; UP +1,481% YoY
• Cash Dividends Declared: $0.74 per share; UP +3% YoY

Q2’26 Outlook:

• Revenue: $2.70B ±$0.10B [✅]
  • The guidance reflects strong demand for Seagate’s high-capacity storage products, particularly in cloud and AI applications.
  • Expected impacts from the new global minimal tax framework and net dilutive effects from Exchangeable Senior Notes due 2028.

Q1 Segment Performance:

• Data Storage Revenue: $2.63B [✅]; UP +21% YoY

Other Key Q1 Metrics:

• Adj. Operating Income: $0.76B [✅]; UP +73% YoY
• Adj. Operating Expenses: $0.29B [✅]; UP +3% YoY
• R&D Expenses: $0.19B [✅]; UP +4% YoY
• Effective Tax Rate: 10.6% (vs. 3.5% YoY)
• Cash and Cash Equivalents: $1.11B
• Ordinary Shares Outstanding: 214M

CEO Commentary:

• Dave Mosley: “Seagate delivered strong September quarter results, with revenue growth of 21% year-over-year and non-GAAP EPS exceeding the high end of our guided range. Our performance underscores the team’s strong execution and robust customer demand for our high-capacity storage products.”
• Dave Mosley: “With clear visibility into sustained demand strength, we are ramping shipments of our areal density-leading Mozaic HAMR products, which are now qualified with five of the world’s largest cloud customers. These products address customers’ performance, durability and TCO needs at scale to continue supporting demand for existing use cases such as social media video platforms as well as growth driven by new AI applications. AI is transforming how content is being consumed and generated, increasing the value of data and storage and Seagate is well positioned for continued profitable growth.”

• EPS of $2.61 (beats estimate of $2.40)
• Revenue of $2.63B (beats estimates of $2.55B)

Guidance of $2.7 billion is roughly in line.

Shares are initially up 3% on the earnings release. 

While much of the AI world rallies today after NVIDIA revelead it has readthrough to $500 billion in chip sales across the next 6 quarters (far above Wall Street estimates), Seagate shares are down 3% in late trading.

Its a bit curious the stock is underperforming on a day when most AI stocks are seeing such strong gains.

We expect Seagate to report at about 4:05 p.m. ET, at which time we’ll begin issuing updates. Simply stay on this page and they should load automatically. 

Seagate (Nasdaq: STX) shares have been on an absolute rally, up 156% year-to-date.

Storage of all kinds has seen explosive growth this year. Memory makers have performed extremely well and companies like SanDisk (Nasdaq: SNDK) have seen their shares take off. SanDisk is up an astounding 383%.