Seagate Technology Holdings Plc (STX) significantly beat Q4 analyst estimates on both revenue and EPS, driven by robust demand for data center storage, particularly from cloud customers. The company achieved record gross and operating margins, indicating strong pricing power and favorable product mix, and provided an optimistic outlook for continued growth through fiscal 2027, fueled by AI applications.
Seagate Technology Holdings Plc (STX) reported exceptional Q4 results, surpassing analyst expectations for both earnings and revenue. The primary driver of this performance was the surging demand for data center storage, with data center customers accounting for 89% of total exabyte shipments, largely fueled by cloud customers and the burgeoning AI sector. The company achieved record adjusted gross and operating margins, indicating effective pricing strategies and a favorable product mix. This strong performance and an optimistic outlook for continued growth through fiscal 2027, supported by increasing HAMR technology adoption and demand from physical AI applications, present a significant opportunity for traders, suggesting sustained positive momentum for STX in the short to medium term.