Seagate is ramping shipments of its areal density-leading Mozaic HAMR products, which are now qualified with five of the world's largest cloud customers. The company's December quarter results exceeded expectations, setting new records for gross margin, operating margin, and non-GAAP EPS, highlighting strong operational execution, durable data center demand, and the ongoing ramp of HAMR-based Mozaic products.
Cyborg Score Rationale
Seagate achieved fiscal Q2 2026 revenue of $2.83 billion, GAAP gross margin of 41.6%, and non-GAAP EPS of $3.11, reaching record profitability levels. The stock surged over 300% in the past year driven by impressive earnings surpassing expectations and heightened demand leading to record margin improvements. Wall Street maintains a distinctly favorable view with 18 of 24 analysts assigning a "Strong Buy" rating.
Top Insights
Seagate delivered strong September quarter results with revenue growth of 21% year-over-year and non-GAAP EPS exceeding the high end of guided range.
Enterprise customers are expanding data center capacity to accommodate growing AI workloads, supporting durable demand for Seagate's storage solutions.
Analysts project fiscal year 2026 diluted EPS of $11.76 representing 62% year-over-year growth, with Seagate having exceeded consensus EPS estimates in each of the past four quarters.
Year-to-date the stock has jumped 54.7%, significantly outperforming the broader market index.
Named Competitors
Hard Disk Drives — Enterprise storage and HDD solutions
SSDs and Storage — Solid-state drives and memory products
Cloud Storage — AWS cloud storage infrastructure
Recent Developments
(Feb 2026) Seagate continues to demonstrate operational momentum with record margins and strong analyst coverage
(Jan 2026) Fiscal Q2 2026 results exceeded expectations with 21.5% YoY revenue growth and 53.2% adjusted EPS growth
(Oct 2025) Fiscal Q1 2026 showed 21% YoY revenue growth with HAMR products qualified by five major cloud customers
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