Seagate (NASDAQ: STX) is scheduled to disclose its fiscal fourth-quarter earnings on Tuesday, July 29, 2025 (June fiscal year). Analysts anticipate that the company will announce earnings of $2.43 per share on sales of $2.42 billion.
STX eyes strong Q4 gains as AI-driven cloud growth and Mozaic drive mass storage demand and margin expansion.
Does Seagate (STX) have what it takes to be a top stock pick for momentum investors? Let's find out.
Seagate (STX) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Seagate (STX) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
STX launches 30TB Mozaic HAMR drives, targeting AI-fueled demand for scalable, energy-efficient storage at the edge.
Seagate's HAMR technology leads the nearline HDD market, offering lower TCO for customers and margin expansion potential for Seagate. Valuations remain reasonable despite a sharp rally, with earnings upgrades driving the stock rather than multiple expansion. Free cash flow is set to improve significantly, supporting robust buybacks and a stable dividend yield for shareholders.
Seagate Technology has taken the spot as the S&P 500's leading performer this year, riding the AI boom to overtake the high-profile tech names that usually dominate the benchmark index
Initiate Buy on Seagate with $172 PT, driven by HAMR technology leadership and aggressive margin expansion roadmap, projecting FY26 EPS of $10.10, well above consensus. HAMR adoption and Mozaic platform shift drive structural gross margin inflection, with operating leverage and disciplined supply chain management supporting multi-year earnings growth. Balance sheet deleveraging and reduced interest expense provide incremental EPS leverage, enabling sustained R&D investment and margin durability through technology transitions.
Question: How would you respond if you owned Seagate (NASDAQ: STX) and its value plummeted by 60% or more in the upcoming months?
Seagate is at a critical inflection point, driven by HAMR commercialization and surging AI-induced storage demand, supporting my strong buy thesis. HAMR technology positions Seagate as an industry leader, unlocking multi-billion-dollar opportunities and significant margin expansion as cloud and AI workloads grow. Despite recent stock rallies, Seagate remains deeply undervalued on key multiples, with a DCF-based intrinsic value of $174, offering substantial upside.