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Seagate forecasts Q1 revenue and profit above estimates as AI storage demand lifts shares

Seagate forecasts Q1 revenue and profit above estimates as AI storage demand lifts shares

After a fourth-quarter beat, Seagate said fiscal 2027 revenue growth should top fiscal 2026, with quarterly revenue and gross margin expected to rise as cloud storage demand and HAMR adoption strengthen.

Fact Check
Both the Reuters report and Seagate's official investor release (via TechPowerUp) confirm the exact figures in the claim: Q1 revenue guidance of ~$4.1 billion and adjusted (non-GAAP) EPS of ~$7.30, both well above analyst consensus ($3.75B revenue and $5.80 EPS per Reuters). Q4 results topped Wall Street expectations, and the AI-driven storage demand and share-price gains are also confirmed. Every element of the claim is corroborated by an official primary source and top-tier news reporting.
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Summary

Seagate Technology reported stronger-than-expected fourth-quarter results and forecast fiscal first-quarter revenue and adjusted profit above analysts' estimates, citing continued demand for high-capacity storage tied to AI infrastructure buildouts. Fourth-quarter revenue rose 48.5% to $3.63 billion and adjusted earnings reached $5.71 per share, both above Wall Street expectations, while the company projected first-quarter revenue of $4.1 billion, plus or minus $100 million, adjusted earnings of $7.30 per share, plus or minus 20 cents, and gross margin of about 57%. Management also said fiscal 2027 revenue growth should exceed fiscal 2026's 34% increase, with revenue and gross margin expected to rise each quarter. Seagate said nearline HDD capacity is committed through 2028 under long-term supply agreements and that HAMR products account for 40% of nearline exabyte shipments, reinforcing its view that demand for high-capacity data-center storage will remain strong.

Terms & Concepts
  • nearline HDD: High-capacity hard disk drives used mainly in data centers for large-scale storage.
  • HAMR: Heat-assisted magnetic recording, a technology that uses localized heating to increase hard-drive storage density.
  • gross margin: The share of revenue remaining after direct production costs, a measure of product profitability.