"Seagate reported Q3 FY2026 on April 28 after the close. Adjusted EPS hit $4.10 versus $3.50 consensus, a 17% beat. Revenue printed $3.11 billion versus $2.96 billion expected, up 44% year over year (YoY). Seagate's free cash flow jumped to $953 million from $216 million the year prior."
"Western Digital, Seagate, and Toshiba form a three-player HDD oligopoly, and none are adding meaningful unit capacity. Nearline allocations to hyperscalers are spoken for through 2027, with 2028 customer engagements already underway."
Seagate Technology and Western Digital experienced significant stock gains in April, with Seagate rising 65% and Western Digital 60%. Both companies outperformed the semiconductor sector, attributed to their oligopoly in the hard disk drive market. Demand for HDDs is fueled by AI workloads, which require cost-effective storage solutions. Seagate's recent earnings report showed a substantial increase in revenue and free cash flow, indicating strong financial performance and positive guidance for the upcoming quarter.
Read at 24/7 Wall St.
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