Seagate Technology has posted a robust forecast for its third-quarter revenue and profit, exceeding Wall Street’s expectations, thanks to an increasing demand for data storage solutions driven by enterprises’ growing reliance on artificial intelligence. The company’s stock surged by 10% in premarket trading following the announcement.
With technology firms investing heavily in data centers to support advanced applications like large language models, Seagate stands to benefit significantly as its hard disk drives play a crucial role in storing the immense quantities of data these AI technologies generate. Seagate CEO Dave Mosley highlighted the industry’s needs, saying, “As AI applications amplify the creation and economic value of data, modern data centers increasingly need storage solutions that combine performance and cost-efficiency at exabyte-scale.”
Earlier in January, Morningstar analysts shared insights expecting that the hard disk drive industry will experience a growth rate in the low teens over the next few years, predicting a balance between declining prices and an uptick in the volume of storage shipped.
Despite a slight dip of approximately 1% in after-hours trading, Seagate’s stock had previously risen by 6% in anticipation of its earnings results. The company’s shares have seen tremendous growth, having more than tripled in 2025, spurred by optimism regarding AI-driven infrastructure.
For the third quarter, Seagate projects revenue of $2.90 billion, plus or minus $100 million, which surpasses the analysts’ consensus estimate of $2.77 billion, as per data compiled by LSEG. Additionally, the company anticipates adjusted earnings per share of $3.40, with a margin of 20 cents, compared to the $2.96 per share expected by analysts.
In the previous quarter, Seagate reported revenue of $2.83 billion, outperforming estimates of $2.73 billion, with an adjusted earnings per share of $3.11, exceeding expectations of $2.81.
These results reflect a positive outlook not only for Seagate but also signify broader growth in the tech sector as businesses adapt to the evolving landscape of AI and data management, positioning themselves for a prosperous future in the tech industry.