Seagate Q3 Earnings Beat Estimates, Shares Up 18%

Seagate Technology reported third-quarter results that exceeded Wall Street expectations and issued fourth-quarter guidance well above forecasts, sending its shares up as much as 18 percent in after-hours trading on Tuesday.

The data storage company posted adjusted earnings per share of $4.10, more than double the $1.90 from a year earlier and ahead of analyst estimates ranging from $3.48 to $3.51. Revenue reached $3.11 billion, a 44 percent increase from $2.16 billion in the prior-year period and surpassing projections of $2.95 billion to $3.0 billion. Non-GAAP gross margin expanded to 47 percent from 36.2 percent a year ago. Seagate also generated $953 million in free cash flow and retired $641 million in debt during the quarter.

For the fourth quarter, Seagate forecast revenue of $3.45 billion, plus or minus $100 million, topping estimates of $3.16 billion. Adjusted earnings per share are expected at $5.00, plus or minus $0.20, compared with forecasts of $3.97. Executives noted the outlook assumes minimal effects from tariffs or geopolitical tensions.

The results underscore surging demand for hard disk drives amid the artificial intelligence boom. Enterprises building AI...