Seagate Gets Upgraded as AI Demand Surges

Forward-Looking Analysis

Seagate Technology (STX) is projected to deliver robust performance in 2026Q3, with analysts forecasting revenue of approximately $3.0 billion, reflecting a 5.3% increase from the $2.83 billion reported in Q2 2026. Wall Street expects net income to rise to around $620 million, translating to earnings per share (EPS) of $2.85. These estimates are supported by strong demand in the enterprise storage market, driven by AI and cloud computing adoption. JMP Securities and BMO Capital recently upgraded Seagate’s outlook, with BMO setting a $155 price target, citing favorable market dynamics and cost optimization progress.

Historical Performance Review

In 2026Q2, Seagate reported revenue of $2.83 billion and net income of $593 million, with EPS at $2.75. The company posted a gross profit of $1.18 billion, underscoring its improving margin efficiency and operational execution amid a challenging supply chain environment.

Additional News

In early April 2026, Seagate announced the launch of its new Exos X200 hard drives, designed specifically for high-capacity data center and AI workloads. The new product line is expected to bolster Seagate’s position in the enterprise market. Additionally, the company finalized a strategic partnership with a major cloud service provider to supply storage solutions for AI infrastructure. CEO Dave Mosley also reiterated Seagate’s commitment to sustainability, pledging to achieve net-zero emissions across its operations by 2030.