Seagate Technology (STX +7.91%) stock booked strong valuation gains following the company's latest earnings release. The company's share price rose 24% over the last week of trading.
After the market closed on April 28, Seagate published results for the second quarter of its 2026 fiscal year -- which ended April 3. Sales and earnings for the period far exceeded Wall Street's expectations, and management issued positive forward guidance.
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Seagate's fiscal Q3 results crushed Wall Street's elevated expectations
Seagate recorded a non-GAAP (adjusted) profit of $4.10 per share on revenue of $3.11 billion in the quarter. Sales in the period were up 44% year over year, and adjusted earnings improved dramatically from the profit of $1.90 per share posted in the prior-year period. The company's sales beat the average Wall Street analyst estimate by $150 million, and adjusted earnings per share topped the consensus forecast by $0.60.
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What's next for Seagate?
Soaring demand in the memory and storage market connected to artificial intelligence has had a transformative impact on Seagate's business, and it looks like strong performance is poised to continue. For the current quarter, the company's midpoint guidance calls for revenue of roughly $3.45 billion -- representing another period of robust sequential growth. Meanwhile, adjusted earnings per share are projected to come in at roughly $5. The company's guidance far exceeded the average analyst estimate's call for adjusted earnings of $2.96 on revenue of $3.16 billion, suggesting that analysts continued to significantly underestimate the business's momentum even as tailwinds intensified.
