Seagate posts strong AI-driven earnings beat, shares up 3%

Seagate Technology reported stronger-than-expected quarterly results and issued a bullish forecast, signaling that demand for data storage from artificial intelligence infrastructure remains robust. The data storage company's shares rose approximately 3% in trading on Wednesday, July 29, 2026, rebounding from an 8.5% decline the previous day.

For its fiscal fourth quarter, which ended in late July, Seagate posted adjusted earnings of $5.71 per share, more than double the $2.59 reported a year earlier and exceeding analyst expectations. Revenue climbed 49% year-over-year to $3.6 billion, also surpassing estimates. The company's performance was driven by significantly higher profitability, with non-GAAP gross margin jumping to 52.7% from 37.9% a year ago.

Looking ahead, Seagate projected first-quarter fiscal 2027 revenue of approximately $4.1 billion and adjusted earnings of $7.30 per share, both figures well above Wall Street forecasts. Chief Executive Dave Mosley attributed the strong results to durable cloud data center demand and disciplined execution. He stated that as AI accelerates data generation, the company sees durable long-term demand for mass capacity storage.