Seagate Technology $STX ( ▼ 5.99% ) shares climbed after the data storage giant topped expectations on both sales and profit, then followed up with upbeat guidance. The results reinforce how AI-driven data center demand is spilling over into traditional storage hardware.
Beating the Street
For its fiscal second quarter, Seagate reported revenue of $2.83 billion, ahead of Wall Street forecasts. Adjusted earnings came in at $3.11 per share, comfortably above expectations as well. The solid quarter shows continued strength in demand for high-capacity storage used in cloud and AI infrastructure.
Guidance adds fuel to the rally
Looking ahead to the current quarter, Seagate expects adjusted earnings between $3.20 and $3.60 per share, well above consensus estimates. Revenue guidance of $2.80 billion to $3.00 billion also came in ahead of what analysts were modeling, suggesting momentum is carrying into the new quarter.
AI storage boom keeps rolling
Seagate has been a major beneficiary of the AI data center buildout, as massive workloads generate huge amounts of data that still need to be stored, not just processed. That trend helped drive a huge rally in the stock last year and continues to support gains this year.
Rival Western Digital $WDC ( ▼ 3.61% ) has seen a similar surge, underscoring how the storage side of the tech stack is becoming an increasingly important piece of the AI infrastructure story.