Highlights

  • Seagate's Q2 revenue rose 22% YoY to USD 2.83B, reflecting strong data storage demand.
  • Adjusted EPS climbed 53% to USD 3.11 as margins improved in fiscal Q2.
  • Management projects Q3 revenue near USD 2.9B with EPS guidance at USD 3.40.

Shares of Seagate Technology Plc (NASDAQ: STX) jumped more than 19% in Wednesday trading after reporting a significant increase in profits. The surge reflects the rising need for data storage driven by AI applications and hyperscale data centers.

Revenue for Seagate’s fiscal 2026 second quarter, which ended on Jan. 2, reached USD 2.83B, marking a 22% increase compared to the same period last year. The growth underlines the expanding demand for high-capacity storage solutions in cloud and enterprise environments.

Margin Expansion Boosts Earnings
Seagate's profitability improved sharply during the quarter. The company reported an adjusted gross margin of 42.2%, up 6.7 percentage points from last year, while operating margin increased 8.8 points to 31.9%. These margin gains contributed to adjusted earnings per share of USD 3.11, a 53% rise compared with Q2 of the previous fiscal year. 

Guidance Signals Continued Growth
Looking ahead, Seagate’s management provided guidance for its fiscal third quarter, forecasting revenue of approximately USD 2.9B and adjusted EPS of USD 3.40. The company noted continued demand for high-capacity nearline drives across global cloud data centers and steady improvement from enterprise edge storage.

Market Context
The demand for storage solutions is being fueled by AI workloads that generate large volumes of data. An exabyte of data, equal to one billion gigabytes, illustrates the scale modern data centers are addressing. With limited supply and rising adoption, Seagate is positioned to meet the storage needs of hyperscalers and enterprise clients.

Share Performance
STX shares closed at USD 442.93 on January 28, 2026, raise 19.14% during the session.