• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    The Bull Case For Seagate Technology Holdings (STX) Could Change Following Strong Q4 Results And Upbeat Guidance

    Simply Wall St·08/02/2026 04:29:58
    Listen to the news
    • In late July 2026, Seagate Technology Holdings reported fourth-quarter sales of US$3,629 million and net income of US$1,294 million, with full-year revenue reaching US$12.20 billion and earnings of US$3.18 billion, and also declared a quarterly dividend of US$0.74 per share payable in October 2026.
    • The earnings release, combined with revenue guidance of about US$4.10 billion for the first quarter of fiscal 2027, highlighted how stronger profitability and forward visibility are influencing how analysts frame Seagate’s growth story.
    • We’ll now examine how Seagate’s stronger quarterly profitability and higher near-term revenue guidance may reshape the earlier investment narrative for the company.

    Capitalize on the AI infrastructure supercycle with our selection of the 55 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow.

    Seagate Technology Holdings Investment Narrative Recap

    To own Seagate, you need to believe that demand for mass-capacity storage and HAMR-based Mozaic drives will support healthy margins despite competition from SSDs and the company’s debt load. The latest quarter’s stronger profitability and US$4.10 billion Q1 2027 revenue guidance reinforce the near term revenue growth catalyst and, for now, do not materially change the key risk around technology shifts and potential pressure on HDD economics.

    The most relevant update is Seagate’s revenue guidance of about US$4.10 billion for the fiscal first quarter of 2027, which builds on Q4’s improved margins and supports the view that cloud and AI-driven storage demand are feeding into higher near term sales. That guidance sits alongside ongoing HAMR ramp-up and build-to-order relationships with large cloud customers, which together form the core of the current bullish catalyst for the stock.

    Yet against these strong numbers, investors should still weigh how quickly energy efficient SSD adoption could pressure Seagate’s HDD driven profit engine and...

    Read the full narrative on Seagate Technology Holdings (it's free!)

    Seagate Technology Holdings' narrative projects $25.3 billion revenue and $11.0 billion earnings by 2029. This requires 31.9% yearly revenue growth and a $8.6 billion earnings increase from $2.4 billion today.

    Uncover how Seagate Technology Holdings' forecasts yield a $959.48 fair value, a 12% upside to its current price.

    Exploring Other Perspectives

    STX 1-Year Stock Price Chart
    STX 1-Year Stock Price Chart

    Before this earnings beat, the most cautious analysts were already baking in big numbers, such as US$23.4 billion revenue and US$10.2 billion earnings by 2029, yet they still saw Seagate as at risk if HDD demand erodes faster than expected, which shows how widely views can differ and why it is worth comparing several narratives side by side.

    Explore 4 other fair value estimates on Seagate Technology Holdings - why the stock might be worth just $959.48!

    Form Your Own Verdict

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

    Searching For A Fresh Perspective?

    Opportunities like this don't last. These are today's most promising picks. Check them out now:

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.