AI storage demand explodes; Seagate’s last quarter revenue exceeds expectations, up nearly 50% with stronger guidance, surges after hours | Earnings Report

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After days of sharp declines in stock prices, U.S. memory chip stocks received good news: Seagate Technology delivered results for the last fiscal quarter and guidance for the current fiscal quarter that were significantly stronger than Wall Street expectations, reflecting explosive AI-related demand.

On Tuesday, the 28th Eastern Time, Seagate announced that for the company’s fourth fiscal quarter ending July 3, 2026, revenue increased nearly 49% year-on-year to $3.65 billion, about 4.6% higher than analysts’ expectations. Adjusted earnings per share (EPS) for the quarter soared about 120% year-on-year to $5.71, 12.4% above market expectations.

The earnings report shows that Seagate not only beat expectations in revenue, but profit margins also substantially outperformed. Adjusted operating margin for the fourth fiscal quarter reached 44.6%, higher than analysts’ expectation of 41.9%. This indicates that, with the revival of high-capacity storage demand, improved product mix, and industry supply discipline, the company's profitability is being rapidly amplified.

Seagate’s guidance for the current quarter further ignited market sentiment. Seagate expects its revenue for the first quarter of fiscal year 2027 to be between $4.0 billion and $4.2 billion, with a midpoint of $4.1 billion, approximately 8.2% higher than analyst expectations; adjusted EPS for the first quarter is estimated at $7.30, about 24.8% above Wall Street expectations. This means that AI storage demand is not just a one-quarter breakout, but may be entering a more sustained uptrend cycle.

Prior to the earnings release, Seagate’s stock price closed down about 8.5% during Tuesday’s regular trading hours. After the report, the stock surged in after-hours trading, at one point jumping more than 10%. Boosted by Seagate’s strong earnings, U.S. storage stocks collectively rose after hours: Western Digital climbed over 6%, SK Hynix ADR rose over 3%, SanDisk gained more than 2%, and Micron Technology was up more than 1%.

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