Seagate Tech (STX) AI Stock Analysis

• Market Cap: $60.40B
• Dividend Yield: 1.03%
• Average Volume (3M): 4.00M
• Price to Earnings (P/E): 36.3
• Beta (1Y): 2.03
• Revenue Growth: 31.56%
• EPS Growth: 106.00%
• Country: US
• Employees: 30,000
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 2.61
• Shares Outstanding: 213,558,100
• 10 Day Avg. Volume: 5,699,500
• 30 Day Avg. Volume: 3,995,228
• PEG Ratio: 0.06
• Price to Book (P/B): -66.19
• Price to Sales (P/S): 3.30
• P/FCF Ratio: 36.66
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 6.38
• Enterprise Value/Gross Profit: 17.32
• Enterprise Value/Ebitda: 25.57
• 1Y Price Target: $306.33
• Price Target Upside: 8.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): 11.48
• Revenue Forecast (FY): $11.02B

• Rating: 68 Neutral
• Price Target: $304.00 ▲(7.50% Upside)

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.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Seagate's products, particularly in the data center segment, supporting long-term expansion.

Technological Advancements

Advancements in HAMR technology enhance Seagate's competitive edge, positioning it well in the growing data storage market.

Cash Flow Generation

Robust cash flow generation supports Seagate's ability to invest in innovation and manage financial obligations, ensuring sustainability.

Negative Factors

High Leverage

Significant leverage poses financial risks, potentially limiting Seagate's flexibility to navigate economic downturns or invest in growth.

Negative Equity

Negative equity indicates potential financial distress, which could impact Seagate's ability to attract investment and sustain operations.

CEO Stock Sale

The CEO's stock sale may signal a lack of confidence in the company's future prospects, potentially affecting investor sentiment and stability.

Seagate Tech Business Overview & Revenue Model

Company Description

Seagate Technology Holdings PLC (STX) is a leading provider of data storage solutions, specializing in hard disk drives (HDDs), solid-state drives (SSDs), and storage systems. The company operates primarily in the data storage sector, serving a wide array of markets, including enterprise, cloud, consumer, and mobile applications. Seagate’s core products include high-capacity HDDs for data centers, portable drives for personal use, and SSDs for enhanced performance in computing systems.

How the Company Makes Money

Seagate generates revenue through the sale of its data storage products, which include HDDs and SSDs, targeting different customer segments such as enterprises, cloud service providers, and individual consumers. The company’s primary revenue streams are derived from the direct sale of these storage devices, as well as from providing related services, such as data recovery and cloud storage solutions. Significant partnerships with major cloud computing companies and OEMs (Original Equipment Manufacturers) enhance its market presence and contribute to steady demand. Additionally, Seagate invests in research and development to innovate and improve its product offerings, ensuring competitive pricing and performance, which further drives its revenue growth.

Seagate Tech Financial Statement Overview

Summary

Seagate Tech shows strong revenue and profit growth with improved margins, indicating operational efficiency. However, the balance sheet reveals high leverage and negative equity, posing financial risks. Cash flow generation is robust but may be challenged by financial instability.

Income Statement

Seagate Tech has shown strong revenue growth with a 5.07% increase in TTM, recovering from previous declines. Gross profit margin improved to 36.86%, indicating efficient cost management. Net profit margin also increased to 17.92%, reflecting enhanced profitability. However, the company has experienced fluctuations in EBIT and EBITDA margins, suggesting potential volatility in operational efficiency.

Balance Sheet

The balance sheet reveals significant financial leverage with a high debt-to-equity ratio of -79.27 in TTM, indicating potential financial risk. Negative stockholders' equity suggests financial instability. Return on equity is negative, reflecting challenges in generating returns for shareholders. Despite these concerns, the company maintains substantial total assets.

Cash Flow

Seagate Tech's cash flow performance is mixed. The free cash flow growth rate is strong at 48.9% in TTM, indicating improved cash generation. The operating cash flow to net income ratio is moderate at 0.37, suggesting reasonable cash conversion efficiency. However, the high leverage and negative equity could pose risks to sustaining cash flow improvements.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.10B	6.55B	7.38B	11.66B	10.68B
Gross Profit	3.20B	1.54B	1.42B	3.47B	2.92B
EBITDA	2.08B	1.04B	330.00M	2.38B	1.97B
Net Income	1.47B	335.00M	-529.00M	1.65B	1.31B
Balance Sheet
Total Assets	8.02B	7.74B	7.56B	8.94B	8.68B
Cash, Cash Equivalents and Short-Term Investments	891.00M	1.36B	786.00M	617.00M	1.21B
Total Debt	5.37B	5.67B	5.83B	5.70B	5.19B
Total Liabilities	8.48B	9.23B	8.76B	8.84B	8.04B
Stockholders Equity	-453.00M	-1.49B	-1.20B	109.00M	631.00M
Cash Flow
Free Cash Flow	818.00M	664.00M	626.00M	1.28B	1.13B
Operating Cash Flow	1.08B	918.00M	942.00M	1.66B	1.63B
Investing Cash Flow	-276.00M	126.00M	217.00M	-352.00M	-466.00M
Financing Cash Flow	-1.27B	-473.00M	-988.00M	-1.90B	-1.67B

Seagate Tech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 282.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STX, the sentiment is Positive. The current price of 282.8 is above the 20-day moving average (MA) of 280.95, above the 50-day MA of 261.81, and above the 200-day MA of 168.79, indicating a bullish trend. The MACD of 7.73 indicates Positive momentum. The RSI at 52.88 is Neutral, neither overbought nor oversold. The STOCH value of 35.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STX.

Seagate Tech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WDC	77 Outperform	$60.43B	25.99	31.48%	0.18%	-16.35%	316.56%
NTAP	76 Outperform	$21.96B	19.12	125.35%	1.89%	2.64%	4.12%
STX	68 Neutral	$60.40B	36.30	―	1.03%	31.56%	106.00%
DELL	65 Neutral	$83.90B	17.02	―	1.45%	10.81%	31.67%
PSTG	64 Neutral	$22.23B	177.59	9.27%	―	13.18%	-0.92%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HPQ	61 Neutral	$21.27B	8.64	―	5.09%	4.09%	-5.77%

Seagate Tech Corporate Events

Seagate Tech Finalizes Exchange of Senior Notes

On November 13, 2025, Seagate Technology announced the completion of privately negotiated exchanges involving $500 million of Seagate HDD’s 3.50% Exchangeable Senior Notes due 2028. These exchanges, which were finalized on November 10 and 12, 2025, resulted in the retirement of the notes in exchange for approximately $503.4 million in cash and 4.3 million ordinary shares of Seagate stock. This transaction, conducted as a private placement, leaves approximately $1 billion of notes outstanding with unchanged terms, potentially impacting Seagate’s financial structure and market positioning.

Seagate Tech Enters Exchange Agreements for Notes

On November 4, 2025, Seagate Technology and its subsidiary, Seagate HDD Cayman, entered into privately negotiated exchange agreements with holders of Seagate HDD’s 3.50% Exchangeable Senior Notes due 2028. The agreements involve exchanging $500 million in principal amount of notes for approximately $503.4 million in cash and a number of Seagate’s ordinary shares. The exchanges are expected to be completed by November 10, 2025, and will result in the retirement of the exchanged notes, leaving approximately $1.0 billion in notes outstanding.

Seagate Tech Shareholders Approve Key Amendments at AGM

At the 2025 Annual General Meeting held on October 25, 2025, Seagate Technology’s shareholders approved significant amendments to the Employee Stock Purchase Plan and the 2022 Equity Incentive Plan. These changes include increasing the number of shares reserved for issuance and allowing for fractional shares, which could enhance employee engagement and retention. Additionally, all eight proposals presented at the meeting were approved, including the election of directors and the appointment of auditors, reflecting shareholder support for the company’s strategic direction.

Seagate Tech Announces Quarterly Dividend Amid Strong Growth

On October 28, 2025, Seagate Technology announced a quarterly cash dividend of $0.74 per share, payable on January 9, 2026. The company reported strong financial results for its fiscal first quarter of 2026, with a 21% year-over-year revenue growth to $2.63 billion and record GAAP and non-GAAP gross margins. Seagate’s performance highlights robust customer demand for its high-capacity storage products, particularly its Mozaic HAMR products, which are now qualified with major cloud customers. This positions Seagate well for continued growth, driven by existing and new AI applications.