Seagate stock lifted as memory-maker posts 'better than expected' quarter
Seagate stock was up in early pre-market on Wednesday, after the 'better than expected' numbers.
Memory-maker Seagate Technology (NASDAQ:STX) sees its stock higher overnight after it reported second quarter revenue of $2.83 billion, and a GAAP gross margin of 41.6%.
CEO Dave Mosley described the numbers as "better than expected".
In New York, in early pre-market, Seagate stock pointed $37.24 or 10% higher pricing at around $409.
Seagate, which makes memory hardware including consumer hard-drives, reported cash flow from operations at $723 million, with free cash flow of $607 million. It added GAAP operating margin was 29.8% and non-GAAP gross margin was 42.2%, with GAAP net income of $593 million and non-GAAP net income of $702 million.
“Seagate’s December quarter results exceeded our expectations on both the top and bottom line, setting new records for gross margin, operating margin, and non-GAAP EPS," Mosley said in a stock market statement.
"This performance highlights our team’s strong operational execution, the durability of data center demand, and the ongoing ramp of our HAMR-based Mozaic products.”
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Seagate said the fiscal third quarter 2026 outlook calls for revenue of $2.90 billion, plus or minus $100 million, and non-GAAP diluted EPS of $3.40, plus or minus $0.20.
The guidance includes the estimated net dilutive impact from the Exchangeable Senior Notes due 2028 and minimal expected impact from global tariff policies.
The Recap
- Seagate reported fiscal second quarter 2026 results including revenue.
- The company reported cash flow from operations of $723 million.
- Management will host a webcast at 2:00 PM PT.
