Zacks Investment Research·1d ago
3 Reasons Growth Investors Will Love Seagate (STX)Seagate (STX) possesses solid growth attributes, which could help it handily outperform the market.
Seagate has executed a remarkable earnings inflection, with revenue rising 121% from $1.9B in 2024Q4 to $4.2B in 2027Q1 (+61% YoY) and gross margin expanding 25.5 points to 57.3%, driven by mass-capacity drive mix and hyperscaler demand recovery that appears to be amplified by deep operating leverage on a largely flat…
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth has accelerated to 61.0% YoY in 2027Q1 with gross margin expanding to 57.3% and operating margin reaching 48.8%, reflecting a fixed-cost base (R&D and SG&A roughly flat near $200M and $159M quarterly) that amplified operating income 569% to $2.1B over ten quarters.
Seagate benefits from the proliferation of AI, which is driving massive data creation and the need for advanced storage solutions.
Seagate has full visibility into nearline capacity demand, positioning it well to meet the needs of large-scale data storage.
The company is achieving record gross margins, reflecting strong operational efficiency and pricing power.
Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Oct 27, 2026 | $7.68+3.2% vs $7.44 | $4.2B+2.0% vs $4.1B |
Q3 2026 Jul 28, 2026 | $5.71+12.0% vs $5.10 | $3.6B+3.7% vs $3.5B |
Q2 2026 Apr 28, 2026 | $4.10+16.8% vs $3.51 | $3.1B+5.1% vs $3.0B |
Q1 2026 Jan 27, 2026 | $3.11+11.9% vs $2.78 | $2.8B+3.6% vs $2.7B |
Seagate (STX) possesses solid growth attributes, which could help it handily outperform the market.
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The Blue Wave is throwing some cold water on the AI trade.
ServiceNow was the Portfolio's top-performing holding during the quarter as improving sentiment toward high-quality software companies coincided with another strong earnings report. Tokyo Electron, a Japan-based leader in semiconductor production equipment, was the Portfolio's largest relative detractor during the quarter. In Q3 2026, we initiated new positions in Seagate Technology, Advanced Micro Devices, Quanta Services, and SK Hynix, while selling Oracle.
Benchmark STX against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Seagate Technology Holdings plc (STX)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $460.99 | $103.37B | 24.33 | 34.06% | 31.86% | 245.11% | 0.6% | |
| $263.78 | $90.92B | 10.11 | 35.7% | 69.2% | 113.77% | 0.17% | |
| $169.19 | $33.51B | 23.86 | 5.37% | 19.19% | 113.67% | 1.23% | |
| $218.73 | $17.5B | 13.10 | 6.94% | 1.75% | 14.94% | 0.81% | |
| $44.77 | $59.28B | 23.56 | 14.06% | 6.57% | 10.85% | 1.34% | |
| $328.53 | $218.23B | 18.83 | 18.8% | 7.53% | — | 0.65% |
Seagate Technology Holdings plc (STX) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Seagate Technology Holdings plc (STX) SEC filings — annual & quarterly reports (10-K, 10-Q)
Oct 28, 2026·SEC
Oct 27, 2026·SEC
Jul 28, 2026·SEC
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Seagate Technology Holdings plc (STX) stock FAQ — growth, dividends, profitability & financials explained
Seagate Technology Holdings plc (STX) reported $13.80B in revenue over the trailing twelve months. Revenue was $12.20B in fiscal year 2026. That is 104% more than the $5.97B of fiscal year 2001.
Seagate Technology Holdings plc (STX) grew revenue by 44.4% over the trailing twelve months, compared with the twelve months before.
Yes. Seagate Technology Holdings plc (STX) earned $4.40B in net income over the trailing twelve months (a 31.9% net margin).
Yes. Seagate Technology Holdings plc (STX) pays a dividend that yields 0.60% at the current price, a small yield.
Seagate Technology Holdings plc (STX) had a return on equity (ROE) of 245.1% over the trailing twelve months. That is well above the market's typical 10-15%.
Seagate Technology Holdings plc (STX) generated $4.38B in free cash flow over the trailing twelve months.
