Why Seagate Stock Surged Today
Seagate Technology's stock surged after the company reported a 44% year-over-year revenue jump to $3.1 billion in its fiscal third quarter. Seagate expects revenue of roughly $3.45 billion in its fiscal fourth quarter, driven by growing demand for data storage solutions due to artificial intelligence infrastructure build-out.
Seagate Technology's revenue jumped 44% year over year to $3.1 billion in its fiscal third quarter, which ended on April 3. The company's adjusted gross margin improved by more than 10 percentage points to 47%, while its operating margin leaped 14 percentage points to 37.5%. Seagate's adjusted net income soared 129% to $934 million, or $4.10 per share. The data storage leader generated $953 million in free cash flow and paid off $641 million in debt. Seagate expects revenue of roughly $3.45 billion and adjusted earnings per share of $5.00 in its fiscal fourth quarter, driven by growing demand for data storage solutions due to artificial intelligence infrastructure build-out. Seagate's CEO Dave Mosley believes the company is entering a new era of structural growth as AI applications amplify data creation and support sustained storage demand.
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