Seagate (STX) Stock Surges on Strong Earnings, Analysts Raise Targets

Seagate Technology delivered a blowout fiscal third quarter, with earnings per share of $4.10 crushing the $3.47 consensus estimate. Revenue soared 44.1% year-over-year to $3.11 billion, exceeding the $2.94 billion Wall Street forecast. The data storage company's stock jumped nearly 10% following the report.

Exceptional margin performance and $1 billion in free cash flow highlighted the quarter. Seagate's guidance for Q4 proved equally impressive, projecting EPS between $4.80-$5.20 and revenue of $3.4-$3.6 billion - both well above analyst expectations. Pricing trends accelerated, with dollars per terabyte climbing 6% annually and sequentially.

Analysts rushed to adjust targets, with BofA lifting its price objective to $840 from $700 while maintaining a Buy rating. Rosenblatt Securities issued the Street's most bullish call at $1,000, significantly above the $669.75 consensus. The results underscore growing AI-driven demand for data storage solutions.