Seagate Technology (STX) stock jumped about 11% in Wednesday’s pre-market trading after the data storage provider reported better-than-expected results for the second quarter of Fiscal 2026 and issued a solid outlook. The company is seeing a surge in data center storage demand amid the ongoing artificial intelligence (AI) boom. Several analysts raised their price targets following Seagate’s stellar results.
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Seagate Impresses with Q2 Earnings and Robust Outlook
Seagate’s Q2 FY26 revenue grew by 21.5% year-over-year to $2.83 billion, surpassing the Street’s estimate of $2.74 billion. Moreover, adjusted earnings per share (EPS) surged by more than 53% to $3.11, exceeding the consensus estimate of $2.84. The AI wave has sparked robust demand for hard-disk drive (HDD) makers like Seagate and Western Digital (WDC).
Consequently, STX stock has rallied by an impressive 259% over the past year, while Western Digital shares have jumped 423% over the same period.
Looking ahead, Seagate expects Q3 FY26 revenue in the range of $2.80 billion to $3 billion, above the consensus estimate of $2.78 billion. Also, adjusted EPS is estimated to be between $3.20 and $3.60, compared to the Street’s forecast of $2.99.
Analysts Raise STX Stock Price Targets
In reaction to the Q2 FY26 print, Bank of America analyst Wamsi Mohan raised his price target for Seagate Technology stock to $450 from $400 and reiterated a Buy rating. The 5-star analyst noted STX’s solid earnings beat and guidance, with gross and operating margin outlook beating the Street’s estimates by 100 basis points.
Mohan added that management remains confident about achieving 50% of nearline exabytes shipments from Heat-Assisted Magnetic Recording (HAMR) drives by the second half of calendar year 2026. The analyst remains positive on STX stock based on robust AI and data center demand, tight supply-demand conditions supporting pricing, solid margins, and disciplined operating expenses, which should drive estimates higher. Overall, Mohan remains bullish on STX stock, given secular cloud demand, revenue and margin expansion, and a clear path to higher-capacity HAMR HDDs.
Additionally, Morgan Stanley analyst Erik Woodring raised his price target for STX stock to $468 from $372 and reiterated a Buy rating. The analyst noted that Seagate’s metrics were strong despite elevated expectations. Woodring highlighted that HDDs continue to gain from surging data center storage demand (video, agentic AI, multi-modal, checkpointing, and more), higher pricing, and a mix shift to higher-capacity HDDs that carry premium margins.
The 5-star analyst added that at the micro level, Seagate’s HAMR rollout is picking up pace, with over 1.5 million shipments of the Mozaic 3 platform this quarter, up from about 1 million last quarter. In fact, all major U.S. cloud service providers (CSPs) are now qualified for Mozaic 3, with a growing number of CSPs qualifying for Mozaic 4. Management expects the Mozaic 4 ramp to strengthen in the second half of 2026. Woodring raised his FY27 estimates by 25% and said, “We can still find healthy upside in our model, primarily on pricing and gross margins.”
Is STX a Good Stock to Buy?
Analysts at Citi, Barclays, and Mizuho also raised their estimates for Seagate. Overall, Wall Street has a Strong Buy consensus rating on Seagate Technology stock based on 14 Buys and four Holds. The average STX stock price target of $364.53 indicates 2% downside risk.
