Seagate Stock Rallies After Q4 Earnings: Record Cash Flow, Strong Margins

Seagate Technology Holdings Plc (NASDAQ:STX) posted its fourth-quarter results after Tuesday’s closing bell, beating analyst estimates on the top and bottom lines. Here’s a look at the details inside the report. 

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Seagate Q4 Details

Seagate reported quarterly earnings of $5.71 per share, which beat the Street estimate of $5.09 by 12.18%, according to Benzinga Pro data.

Quarterly revenue came in at $3.63 billion, which beat the consensus estimate of $3.49 billion and was up from $2.44 billion in the same period last year.

Seagate reported the following fourth quarter highlights:

• Non-GAAP gross margin of 52.7%
• Cash flow from operations of $1.3 billion and free cash flow of $1.1 billion
• Retired $302 million in debt and returned $283 million to shareholders through dividends and share repurchases

“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,” said CEO Dave Mosley.

“Our performance is being driven by robust cloud data center demand and disciplined execution, and we see the momentum continuing in 2027,” Mosley added.

Looking Ahead

Seagate expects first quarter revenue of $4.1 billion, plus or minus $100 million, and non-GAAP diluted EPS of $7.30, plus or minus 20 cents.

STX Stock Price Activity: According to data from Benzinga Pro, Seagate stock was up 7.32% to $802.01 in Tuesday’s extended trading.  

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