Seagate Technology Reports Record Earnings for Q2 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 28 2026
0mins
Should l Buy STX?
Source: seekingalpha
- Record Financial Performance: Seagate reported $2.83 billion in revenue for the December quarter, reflecting a 7% sequential and 22% year-over-year increase, exceeding market expectations and setting new company records, highlighting robust data center demand trends.
- Margin Improvement: Non-GAAP gross margin reached 42.2%, up 210 basis points sequentially, while non-GAAP operating margin rose to 31.9%, indicating effective execution of pricing strategies and high-capacity drive sales, thereby enhancing profitability.
- Strong Cash Flow: Free cash flow generation hit $607 million, a 42% increase from the prior quarter, alongside the successful retirement of $500 million in debt, resulting in a net leverage ratio improvement to 1.1x, showcasing ongoing financial health and capital discipline.
- Optimistic Outlook: Management anticipates March quarter revenue to be around $2.9 billion, representing a 34% year-over-year growth, and plans to begin accepting orders for the first half of 2027 in the coming months, reflecting strong confidence in future demand.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy STX?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on STX
Wall Street analysts forecast STX stock price to fall
18 Analyst Rating
14 Buy
3 Hold
1 Sell
Moderate Buy
Current: 579.880
Low
150.00
Averages
310.39
High
465.00
Current: 579.880
Low
150.00
Averages
310.39
High
465.00
About STX
Seagate Technology Holdings plc provides mass-data storage infrastructure solution. The Company’s principal products are hard disk drives, commonly referred to as disk drives, hard drives (HDDs). In addition to HDDs, the Company produces a range of data storage products, including solid state drives (SSDs), solid state hybrid drives, storage subsystems, as well as a scalable edge-to-cloud mass data platform. Its HDD products are designed for mass capacity storage and legacy markets. Mass capacity storage involves use cases, such as hyperscale data centers and public clouds, as well as emerging use cases. The Company’s HDD and SSD product portfolio includes Serial Advanced Technology Attachment, Serial Attached SCSI and Non-Volatile Memory Express based designs to support a variety of mass capacity and legacy applications. Its systems portfolio includes storage subsystems for enterprises, cloud service providers, scale-out storage servers and original equipment manufacturers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Tradr ETFs to Launch Four Leveraged ETFs on April 24
- Product Launch: Tradr ETFs announced the launch of four single stock leveraged ETFs on April 24, three of which are first-to-market, aiming to provide investors with 200% of the daily performance of specific stocks, thereby enhancing market participation.
- Underlying Stocks: The newly launched ETFs include the Tradr 2X Long AXTI Daily ETF (tracking AXT Inc.), Tradr 2X Long CPNG Daily ETF (tracking Coupang Inc.), Tradr 2X Long MPWR Daily ETF (tracking Monolithic Power Systems), and Tradr 2X Long STX Daily ETF (tracking Seagate Technology), offering investors a diversified investment choice.
- Risk Advisory: Tradr ETFs are designed for high-conviction investors seeking leveraged investment opportunities; however, due to the magnification of underlying security performance, investors must fully understand the risks associated with leverage, which may exacerbate potential losses.
- Market Positioning: These ETFs are primarily targeted at professional traders and experienced investors, emphasizing short-term trading strategies suitable for those looking to amplify returns through leverage, reflecting the market's demand for high-risk investment tools.
See More
Seagate Unveils New Consumer Storage Solutions
- Product Line Refresh: Seagate has launched new consumer and prosumer storage solutions, including the Seagate One Touch, FireCuda X Vault, and LaCie 8big Pro5, with capacities up to 256TB, designed to meet the growing data storage needs and enhance user efficiency in backup, gaming expansion, and creative workflows.
- Convenient Backup Experience: The Seagate One Touch external hard drive offers high-capacity options of 8TB, 20TB, and 24TB, featuring a USB-C single-cable connection that simplifies setup and eliminates the need for external power, thereby enhancing user convenience and desktop tidiness.
- Gaming Storage Expansion: The FireCuda X Vault is tailored for gamers and streamers, providing high-capacity options of 8TB and 20TB with plug-and-play USB-C connectivity, effectively managing large game libraries and archived content, thus enhancing the gaming experience for users.
- Professional RAID Storage: The LaCie 8big Pro5 supports multiple RAID configurations with capacities ranging from 32TB to 256TB and features Thunderbolt™ 5 performance, achieving data transfer speeds of up to 2800MB/s, specifically designed for creative professionals handling 4K/8K video and large RAW image libraries, ensuring efficient workflows and data security.
See More
U.S. Stocks Rise, Nasdaq Hits Record High
- Nasdaq Hits Record High: The Nasdaq 100 rose by 1.73%, reaching a new record high, reflecting strong investor confidence in tech stocks, particularly driven by robust corporate earnings, which may attract further investment in the tech sector.
- Earnings Beat Expectations: Companies like GE, Boeing, and Masco reported Q1 revenues of $9.34 billion, negative $1.45 billion, and $1.92 billion respectively, all exceeding market expectations, which boosted overall market sentiment and indicated signs of economic recovery.
- Oil Price Surge Affects Markets: WTI crude oil prices rose over 3% due to the blockade of the Strait of Hormuz, potentially exacerbating the global energy crisis and influencing market inflation expectations, thereby affecting investor risk appetite.
- Mortgage Applications Increase: U.S. MBA mortgage applications rose by 7.9% in the week ending April 17, with the purchase mortgage sub-index up 10.1%, indicating a rebound in housing demand that could positively impact the real estate market.
See More
U.S. Stocks Rise, Nasdaq Hits Record High
- Strong Market Performance: The S&P 500 index rose by 0.84%, the Dow Jones Industrial Average increased by 0.76%, and the Nasdaq 100 climbed by 1.28%, reflecting robust market sentiment and investor confidence, particularly against the backdrop of better-than-expected corporate earnings.
- Earnings Drive Growth: Companies like GE Vernova, Boeing, and Masco reported Q1 earnings exceeding market expectations, with revenues of $9.34 billion, $1.92 billion, and $5.20 billion respectively, indicating signs of economic recovery and boosting overall market performance.
- Geopolitical Impact: President Trump extended the ceasefire with Iran, and although planned talks were called off, the market's optimism regarding future negotiations has increased investor confidence, with oil prices rising over 2%, potentially exacerbating the global energy crisis.
- Mortgage Applications Surge: U.S. MBA mortgage applications rose by 7.9% in the week ending April 17, with the purchase mortgage sub-index up 10.1%, indicating a rebound in housing demand, while the average 30-year fixed mortgage rate fell to 6.35%, providing better financing conditions for homebuyers.
See More
U.S. Stocks Rise, Nasdaq Hits Record High
- Strong Market Performance: The S&P 500 index rose by 0.65%, the Dow Jones Industrial Average increased by 0.70%, and the Nasdaq 100 climbed by 0.79%, reflecting robust market sentiment, particularly driven by better-than-expected corporate earnings that boosted investor confidence.
- Earnings Drive Growth: Companies like GE Vernova, Boeing, and Masco reported Q1 earnings exceeding expectations, with net sales of $9.34 billion, negative adjusted free cash flow of -$1.45 billion, and $1.92 billion respectively, propelling market gains and enhancing confidence in economic recovery.
- Geopolitical Impact: President Trump announced an indefinite extension of the ceasefire with Iran, and although planned talks were called off, the market remains optimistic about future developments, contributing to a rise in crude oil prices, with WTI crude up over 1%.
- Mortgage Applications Surge: U.S. MBA mortgage applications rose by 7.9% for the week ending April 17, with the purchase mortgage sub-index up 10.1%, indicating signs of recovery in the housing market, while the average 30-year fixed mortgage rate fell to 6.35%.
See More
Latest Rating Changes on Wall Street
- Airbnb Upgrade: Wells Fargo upgraded Airbnb from equal weight to overweight, projecting revenue growth of 6% to 11% and EPS growth of 7% to 12% by 2027, indicating strong innovation and market potential.
- Positive Outlook for SharonAI: Compass Point initiated coverage on SharonAI with a buy rating, highlighting that its first major contract will drive scale and that its Australian capacity build provides a credible market base for deployment.
- Biogen's Multiple Catalysts: UBS upgraded Biogen to buy with a price target of $225, citing increasing confidence in several pipeline catalysts expected to drive stock price higher over the next 12-15 months.
- Twilio's Strategic Improvement: Bank of America upgraded Twilio from underperform to buy with a price target of $190, believing its strategic positioning in AI will lead to positive growth inflections for the company.
See More
Tradr ETFs to Launch Four Leveraged ETFs on April 24
- Product Launch: Tradr ETFs announced the launch of four single stock leveraged ETFs on April 24, three of which are first-to-market, aiming to provide investors with 200% of the daily performance of specific stocks, thereby enhancing market participation.
- Underlying Stocks: The newly launched ETFs include the Tradr 2X Long AXTI Daily ETF (tracking AXT Inc.), Tradr 2X Long CPNG Daily ETF (tracking Coupang Inc.), Tradr 2X Long MPWR Daily ETF (tracking Monolithic Power Systems), and Tradr 2X Long STX Daily ETF (tracking Seagate Technology), offering investors a diversified investment choice.
- Risk Advisory: Tradr ETFs are designed for high-conviction investors seeking leveraged investment opportunities; however, due to the magnification of underlying security performance, investors must fully understand the risks associated with leverage, which may exacerbate potential losses.
- Market Positioning: These ETFs are primarily targeted at professional traders and experienced investors, emphasizing short-term trading strategies suitable for those looking to amplify returns through leverage, reflecting the market's demand for high-risk investment tools.
See More
Seagate Unveils New Consumer Storage Solutions
- Product Line Refresh: Seagate has launched new consumer and prosumer storage solutions, including the Seagate One Touch, FireCuda X Vault, and LaCie 8big Pro5, with capacities up to 256TB, designed to meet the growing data storage needs and enhance user efficiency in backup, gaming expansion, and creative workflows.
- Convenient Backup Experience: The Seagate One Touch external hard drive offers high-capacity options of 8TB, 20TB, and 24TB, featuring a USB-C single-cable connection that simplifies setup and eliminates the need for external power, thereby enhancing user convenience and desktop tidiness.
- Gaming Storage Expansion: The FireCuda X Vault is tailored for gamers and streamers, providing high-capacity options of 8TB and 20TB with plug-and-play USB-C connectivity, effectively managing large game libraries and archived content, thus enhancing the gaming experience for users.
- Professional RAID Storage: The LaCie 8big Pro5 supports multiple RAID configurations with capacities ranging from 32TB to 256TB and features Thunderbolt™ 5 performance, achieving data transfer speeds of up to 2800MB/s, specifically designed for creative professionals handling 4K/8K video and large RAW image libraries, ensuring efficient workflows and data security.
See More
U.S. Stocks Rise, Nasdaq Hits Record High
- Nasdaq Hits Record High: The Nasdaq 100 rose by 1.73%, reaching a new record high, reflecting strong investor confidence in tech stocks, particularly driven by robust corporate earnings, which may attract further investment in the tech sector.
- Earnings Beat Expectations: Companies like GE, Boeing, and Masco reported Q1 revenues of $9.34 billion, negative $1.45 billion, and $1.92 billion respectively, all exceeding market expectations, which boosted overall market sentiment and indicated signs of economic recovery.
- Oil Price Surge Affects Markets: WTI crude oil prices rose over 3% due to the blockade of the Strait of Hormuz, potentially exacerbating the global energy crisis and influencing market inflation expectations, thereby affecting investor risk appetite.
- Mortgage Applications Increase: U.S. MBA mortgage applications rose by 7.9% in the week ending April 17, with the purchase mortgage sub-index up 10.1%, indicating a rebound in housing demand that could positively impact the real estate market.
See More
U.S. Stocks Rise, Nasdaq Hits Record High
- Strong Market Performance: The S&P 500 index rose by 0.84%, the Dow Jones Industrial Average increased by 0.76%, and the Nasdaq 100 climbed by 1.28%, reflecting robust market sentiment and investor confidence, particularly against the backdrop of better-than-expected corporate earnings.
- Earnings Drive Growth: Companies like GE Vernova, Boeing, and Masco reported Q1 earnings exceeding market expectations, with revenues of $9.34 billion, $1.92 billion, and $5.20 billion respectively, indicating signs of economic recovery and boosting overall market performance.
- Geopolitical Impact: President Trump extended the ceasefire with Iran, and although planned talks were called off, the market's optimism regarding future negotiations has increased investor confidence, with oil prices rising over 2%, potentially exacerbating the global energy crisis.
- Mortgage Applications Surge: U.S. MBA mortgage applications rose by 7.9% in the week ending April 17, with the purchase mortgage sub-index up 10.1%, indicating a rebound in housing demand, while the average 30-year fixed mortgage rate fell to 6.35%, providing better financing conditions for homebuyers.
See More
U.S. Stocks Rise, Nasdaq Hits Record High
- Strong Market Performance: The S&P 500 index rose by 0.65%, the Dow Jones Industrial Average increased by 0.70%, and the Nasdaq 100 climbed by 0.79%, reflecting robust market sentiment, particularly driven by better-than-expected corporate earnings that boosted investor confidence.
- Earnings Drive Growth: Companies like GE Vernova, Boeing, and Masco reported Q1 earnings exceeding expectations, with net sales of $9.34 billion, negative adjusted free cash flow of -$1.45 billion, and $1.92 billion respectively, propelling market gains and enhancing confidence in economic recovery.
- Geopolitical Impact: President Trump announced an indefinite extension of the ceasefire with Iran, and although planned talks were called off, the market remains optimistic about future developments, contributing to a rise in crude oil prices, with WTI crude up over 1%.
- Mortgage Applications Surge: U.S. MBA mortgage applications rose by 7.9% for the week ending April 17, with the purchase mortgage sub-index up 10.1%, indicating signs of recovery in the housing market, while the average 30-year fixed mortgage rate fell to 6.35%.
See More
Latest Rating Changes on Wall Street
- Airbnb Upgrade: Wells Fargo upgraded Airbnb from equal weight to overweight, projecting revenue growth of 6% to 11% and EPS growth of 7% to 12% by 2027, indicating strong innovation and market potential.
- Positive Outlook for SharonAI: Compass Point initiated coverage on SharonAI with a buy rating, highlighting that its first major contract will drive scale and that its Australian capacity build provides a credible market base for deployment.
- Biogen's Multiple Catalysts: UBS upgraded Biogen to buy with a price target of $225, citing increasing confidence in several pipeline catalysts expected to drive stock price higher over the next 12-15 months.
- Twilio's Strategic Improvement: Bank of America upgraded Twilio from underperform to buy with a price target of $190, believing its strategic positioning in AI will lead to positive growth inflections for the company.
See More
