Seagate Stock Soars To 3-Month High On Q2 Beat: Retail Stays Bullish
CEO Dave Mosley said the company is in a great position to “deliver profitable growth” in fiscal year 2025.

Seagate Technology Holdings (STX) stock rose sharply in Wednesday’s early trading after the data storage devices company announced an upbeat fiscal year 2025 second-quarter results.
The Fremont, California-based company reported second-quarter non-GAAP earnings per share (EPS) of $2.03, up from $0.12 a year ago. The bottom line results exceeded the consensus estimate of $1.88 per share.
Revenue climbed nearly 50% year-over-year (YoY) to $2.33 billion from $1.56 billion, surpassing the $2.32 billion consensus estimate.
Dave Mosley, CEO of Seagate, said, “Our results demonstrate structural improvements in the business and our focus on value capture in an improving demand environment, highlighted by decade-high gross margin performance exiting the December quarter.”
The company said it began ramping up HAMR-based Mozaic products to its lead customer in the December quarter and that the latter is already sampling capacities up to 36 terabytes.
Mosley said the company is in a great position to “deliver profitable growth” in fiscal year 2025.
Seagate generated $221 million in cash flow from operations during the second quarter and ended the quarter with a cash position of $1.2 billion.
The board declared a quarterly cash dividend of $0.72 per share, payable on April 2, to shareholders of record as of the close of business on March 19.
Seagate projects third-quarter non-GAAP EPS at $1.70, plus or minus $0.20, and revenue at $2.1 billion. Analysts, on average, estimate the metrics to come in at $1.73 and $2.18 billion, respectively.
Following the results, Baird analyst Tristan Gerra maintained an ‘Outperform’ rating and a $120 price target for Seagate stock. The analyst’s bullish thesis is predicated on the company’s expectations of a continued increase in hyperscaler capex in 2025.
He noted that the company expects substantial data generated by artificial intelligence (AI) to reside on hard disk drives (HDD), fueling secular growth ahead.
Morgan Stanley revised the price target for the stock to $134 from $129, citing the in-line quarterly results, gross margin base, and its updated calendar year 2025 estimate, which is 15% above the consensus.
Analyst Erik Woodring noted that the March quarter supply headwinds have been resolved.

On Stocktwits, retail sentiment toward Seagate stock is ‘extremely bullish’ (92/100), with sentiment slightly toned down from Tuesday when Morgan Stanley named the company as its top IT hardware pick in place of Apple, Inc. (AAPL). Message volume remained ‘extremely high.’
The stock rallied 8.23% to $109.58 in early trading, marking the highest level since Oct. 22.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<