Seagate Technology stock: Strong Q1, higher Q2 outlook

Seagate Technology Holdings plc reported a strong fiscal first quarter on October 27, 2026, and issued a higher outlook for the following quarter. In its earnings release, the company reported revenue of USD 4.233 billion for the period ended October 2, 2026, compared with USD 2.629 billion a year earlier.

Profitability And Guidance Improve

GAAP diluted earnings per share reached USD 7.59, while the adjusted figure was USD 7.68. GAAP gross margin was 57.3%, and non-GAAP gross margin was 57.8%. Seagate also generated USD 1.479 billion in free cash flow and repaid approximately USD 1.2 billion of principal debt during the quarter.

For fiscal second-quarter 2027, management guided to revenue of USD 4.8 billion, with a range of plus or minus USD 100 million. Non-GAAP diluted earnings per share are expected at USD 9.20, plus or minus USD 0.20. The company also raised its quarterly cash dividend to USD 0.76 per share, payable on January 7, 2027, to shareholders of record on December 23, 2026.

Storage Demand Remains Central

Management said data creation, retention and reuse continue to increase storage demand. Its HAMR-based roadmap is intended to raise areal density while supporting supply discipline and value-based pricing. An industry review by Blocks & Files highlighted the importance of hyperscale and HAMR demand for the companys growth outlook.

What Changed Since The Last Report

The valid Lang & Schwarz quote was EUR 635.00 at 17:10:31 Berlin time on October 29, 2026. That compares with EUR 609.00 at 17:00 on October 28 in the most recent checked own report, an increase of 4.27%. The movement is shown as a separate comparison and is not presented as a direct reaction to the earnings announcement.

For investors, the key issue is whether Seagates pricing, areal-density roadmap and customer demand can support the companys ambitious second-quarter guidance. The outlook is constructive, but execution in the transition to HAMR-based products remains material to future results.

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