Seagate stock gets stronger Q2 outlook after record Q1

Seagate Technology reported a sharp increase in fiscal first-quarter results on October 27, 2026, and raised its outlook for the following quarter. The company said revenue for the period ended October 2 reached 4.233 billion US dollars, compared with 2.629 billion US dollars a year earlier, while management pointed to continued demand for mass-capacity storage.

Seagate stock traded at 590.00 euros on Lang & Schwarz at 10:30 Berlin time on Monday, November 2, 2026.

Profitability Reached New Highs

According to Seagate's investor release, GAAP diluted earnings per share came to 7.59 US dollars, up from 2.43 US dollars in the year-earlier quarter. On a non-GAAP basis, diluted earnings per share reached 7.68 US dollars, compared with 2.61 US dollars previously.

GAAP gross margin was 57.3 percent, versus 39.4 percent a year earlier. Non-GAAP gross margin reached 57.8 percent, while non-GAAP operating margin was 50.7 percent, compared with 29.0 percent in the prior-year quarter. Net income rose to 1.761 billion US dollars from 549 million US dollars.

Seagate generated 1.7 billion US dollars in operating cash flow and 1.5 billion US dollars in free cash flow during the quarter. The company retired approximately 1.2 billion US dollars of principal debt during the period, reducing gross debt to 2.4 billion US dollars. After quarter-end, it retired a further 750 million US dollars, bringing gross debt to 1.6 billion US dollars.

December Guidance Raises Expectations

For fiscal second-quarter 2027, Seagate expects revenue of 4.8 billion US dollars, with a range of plus or minus 100 million US dollars. Non-GAAP diluted earnings per share is expected at 9.20 US dollars, with a range of plus or minus 0.20 US dollars. The earnings outlook excludes known pre-tax share-based compensation charges of 0.30 US dollars per share.

Chief Executive Dave Mosley said data creation, retention and reuse continue to increase storage demand. He also pointed to Seagate's HAMR-based technology roadmap, value-based pricing strategy and strengthened balance sheet as supports for longer-term profitable growth. The company expects its storage technology transition and customer demand to remain important execution tests for the coming quarters.

Seagate also raised its quarterly cash dividend by approximately 3 percent to 0.76 US dollars per share. The dividend is payable on January 7, 2027, to shareholders of record on December 23, 2026. The company returned 568 million US dollars through dividends and share repurchases during the reported quarter.

For investors, the results strengthen the case for continued earnings growth if data-center demand, pricing and the HAMR rollout remain on track. The higher outlook also raises the performance bar: any slowdown in storage demand or weaker execution could weigh more heavily on expectations after the strong quarter.

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