Seagate Technology (STX) posted a blowout fiscal Q3 2026, topping analyst estimates and issuing far stronger-than-expected Q4 guidance. The hard-drive maker reported adjusted EPS of $4.10 versus the $3.48 consensus and revenue of $3.11 billion, beating the $2.95 billion estimate and surging 44% year-over-year from $2.16 billion. The company’s non-GAAP gross margin hit 47.0%, up sharply from 36.2% a year ago. Seagate generated $1.1 billion in operating cash flow and $953 million in free cash flow during the quarter, while retiring $641 million in debt.
CEO Dave Mosley called the period a "quarter of record margin performance." The stock surged over 18% in after-hours trading, reaching $687.00 after closing the regular session at $579.03. Q4 guidance was the main catalyst: Seagate forecast revenue of $3.45 billion (plus or minus $100 million) against a consensus of $3.15 billion, and adjusted EPS of $5.00 (plus or minus $0.20), well above the $3.97 analyst estimate. Management stated the outlook assumes minimal impact from tariffs and current geopolitical conditions. The company attributed rising demand to AI workloads accelerating data creation and driving long-term storage capacity needs.
The strong results rippled through the memory and storage sector. On Wednesday, SanDisk (SNDK) rebounded 7.8% to $1,080 in premarket trading, Western Digital (WDC) jumped 10.5% to $432, and Micron (MU) gained 4.7% to $528.12. The rally reversed Tuesday's selloff triggered by a Wall Street Journal report that OpenAI missed internal growth targets. Seagate’s results reassured investors that AI infrastructure storage demand remains intact despite fluctuations in AI model adoption metrics.
All eyes now turn to SanDisk’s fiscal Q3 earnings due on April 30. In its previous quarter, SanDisk posted revenue of $3.03 billion, up 61% year-over-year, with GAAP net income of $803 million. The company guided for Q3 revenue of $4.4–$4.8 billion and non-GAAP diluted EPS of $12–$14, with gross margins expected to hit 65%–67%. Its datacenter revenue rose 64% sequentially to $440 million in Q2, driven by AI infrastructure builders and large tech companies.
