Seagate Tech posts strong Q2 results, boosts shareholder returns

Seagate Tech ( (STX) ) has shared an update.

On January 28, 2026, Seagate Technology reported strong fiscal second-quarter 2026 results for the period ended January 2, 2026, with revenue rising to $2.83 billion from $2.33 billion a year earlier, GAAP gross margin expanding to 41.6%, and GAAP diluted EPS increasing to $2.60, while non-GAAP EPS reached $3.11. The company highlighted record gross and operating margins and attributed the outperformance to robust data center demand and the ramp-up of its HAMR-based Mozaic products, underscoring its positioning in high-capacity storage for AI-driven data growth. Seagate generated $723 million in operating cash flow and $607 million in free cash flow during the quarter, used $500 million to retire exchangeable senior notes due 2028, and returned $154 million to shareholders via dividends, ending the quarter with $1.0 billion in cash and 218 million shares outstanding. On January 27, 2026, the board declared a quarterly cash dividend of $0.74 per share, payable on April 8, 2026 to shareholders of record on March 25, 2026, signaling continued capital returns alongside investment in its areal-density-driven roadmap and reinforcing its financial strength and shareholder-focused capital allocation.

The most recent analyst rating on (STX) stock is a Buy with a $400.00 price target. To see the full list of analyst forecasts on Seagate Tech stock, see the STX Stock Forecast page.

Spark’s Take on STX Stock

According to Spark, TipRanks’ AI Analyst, STX is a Neutral.

Seagate Technology’s overall stock score is driven by strong technical analysis and positive earnings call sentiment, reflecting robust revenue growth and strategic advancements. However, financial performance is hindered by high leverage and negative equity, and valuation concerns due to a high P/E ratio temper the overall score. Corporate events provide additional support, indicating strategic alignment and shareholder confidence.

To see Spark’s full report on STX stock, click here.

More about Seagate Tech

Seagate Technology Holdings plc is a leading innovator in mass-capacity data storage, offering a full portfolio of storage devices, systems, and services that span from edge to cloud. Founded over 45 years ago, the company has shipped more than four billion terabytes of data capacity, serving data center and enterprise customers that require high-capacity, cost-efficient storage solutions, particularly as AI-driven workloads fuel exabyte-scale demand.

Average Trading Volume: 4,120,061

Technical Sentiment Signal: Buy

Current Market Cap: $76.52B

For detailed information about STX stock, go to TipRanks’ Stock Analysis page.