Seagate (NASDAQ:STX) Reports Strong Q2, Stock Soars
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Data storage manufacturer Seagate STX announced better-than-expected revenue in Q2 CY2026, with sales up 48.5% year on year to $3.63 billion. On top of that, next quarter's revenue guidance ($4.1 billion at the midpoint) was surprisingly good and 8.7% above what analysts were expecting. Its non-GAAP profit of $5.71 per share was 12.1% above analysts' consensus estimates. Seagate (STX) Q2 CY2026 Highlights: "Seagate's strong fourth quarter exceeded our expectations for revenue and non-GAAP EPS, capping a fiscal 2026 in which we grew annual revenue 34%, delivered record profitability, and generated a record $3.1 billion in free cash flow. Our performance is being driven by robust cloud data center demand and disciplined execution, and we see the momentum continuing in 2027," said Dave Mosley, Seagate's chair and chief executive officer. Company Overview One of two remaining major hard drive manufacturers after decades of industry consolidation, Seagate STX manufactures hard disk drives and solid state drives that store data in data centers, cloud systems, and consumer devices. Revenue Growth A company's long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Unfortunately, Seagate's 2.7% annualized revenue growth over the last five years was tepid. This wasn't a great result...
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