STX lifts multi-year revenue growth forecast to at least 20% following fiscal Q3 earnings that surpassed estimates by 17%.
Seagate Technology reported fiscal Q3 revenue of $3.11 billion, a 44% year-over-year increase, exceeding consensus estimates by 5.22%. Non-GAAP EPS reached $4.10, beating the $3.506 estimate by 16.94%. The company guided Q4 revenue to $3.45 billion and EPS to $5.00 at the midpoint.
CEO Dave Mosley raised the multi-year revenue growth target to a minimum of 20%, up from low- to mid-teens. Free cash flow surged 341.2% to $953 million, with a 31% margin, while $641 million in debt was retired. Net leverage fell to 0.7x, prompting an investment-grade upgrade from Fitch. The quarterly dividend was increased to $0.74 per share.
Seagate’s nearline capacity is nearly fully contracted through 2027, positioning it as a key supplier to hyperscalers amid AI-driven demand growth.