Seagate Tech (STX) AI Stock Analysis

• Market Cap: $59.66B
• Dividend Yield: 1.08%
• Average Volume (3M): 5.30M
• Price to Earnings (P/E): 35.9
• Beta (1Y): 1.93
• 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: 6,296,249
• 30 Day Avg. Volume: 5,301,580
• 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: 1.02
• Enterprise Value/Revenue: 6.38
• Enterprise Value/Gross Profit: 17.32
• Enterprise Value/Ebitda: 25.57
• 1Y Price Target: $285.83
• Price Target Upside: -0.75% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): 11.33
• Revenue Forecast (FY): $10.95B

• Rating: 70 Outperform
• Price Target: $303.00 ▲(5.21% Upside)

Seagate Technology's stock score is driven by strong earnings performance and bullish technical indicators. However, financial risks due to high leverage and a high P/E ratio limit the score. The optimistic earnings outlook and technological advancements in HAMR technology are significant positives.

Positive Factors

Revenue Growth

The significant year-over-year revenue growth indicates strong market demand and effective sales strategies, particularly in the data center segment, which is crucial for long-term business sustainability.

HAMR Technology Advancements

Advancements in HAMR technology enhance Seagate's competitive edge in high-capacity storage solutions, supporting future revenue growth and market leadership in data storage.

Data Center Segment Performance

Strong performance in the data center segment underscores Seagate's strategic positioning in a high-growth market, ensuring sustained demand for its storage solutions.

Negative Factors

High Financial Leverage

High leverage poses financial risks, potentially limiting Seagate's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Negative Equity

Negative equity indicates potential financial distress, which could hinder Seagate's ability to attract investment and maintain operational flexibility.

Supply Constraints

Supply constraints may limit Seagate's ability to capitalize on demand, affecting revenue growth and market share expansion in the near to medium term.

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 and serves a diverse range of markets, including consumer electronics, enterprise, cloud storage, and data centers. Seagate's core products include high-capacity HDDs for both personal and enterprise use, as well as a range of SSDs designed for performance-sensitive applications.

How the Company Makes Money

Seagate generates revenue primarily through the sale of its storage devices, including HDDs and SSDs, which are sold to various customer segments such as OEMs (Original Equipment Manufacturers), retailers, and direct consumers. The company benefits from a strong presence in the data center market, providing storage solutions that cater to the growing demand for cloud services and big data analytics. Key revenue streams include the sales of products for consumer applications, business storage solutions, and enterprise-grade storage systems. Additionally, Seagate has established significant partnerships with major tech firms and cloud service providers, enhancing its market reach and driving sales. The company's ability to innovate and adapt to changing technology trends also plays a crucial role in maintaining 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 2019	Dec 2018
Income Statement
Total Revenue	9.10B	6.55B	7.38B	10.39B	11.18B
Gross Profit	3.20B	1.54B	1.42B	2.93B	3.36B
EBITDA	2.08B	1.04B	330.00M	2.01B	2.33B
Net Income	1.47B	335.00M	-529.00M	2.01B	1.18B
Balance Sheet
Total Assets	8.02B	7.74B	7.56B	8.88B	9.41B
Cash, Cash Equivalents and Short-Term Investments	891.00M	1.36B	786.00M	2.22B	1.85B
Total Debt	5.37B	5.67B	5.83B	4.25B	4.82B
Total Liabilities	8.48B	9.23B	8.76B	6.72B	7.75B
Stockholders Equity	-453.00M	-1.49B	-1.20B	2.16B	1.67B
Cash Flow
Free Cash Flow	818.00M	664.00M	626.00M	1.16B	1.75B
Operating Cash Flow	1.08B	918.00M	942.00M	1.76B	2.11B
Investing Cash Flow	-276.00M	126.00M	217.00M	846.00M	-1.59B
Financing Cash Flow	-1.27B	-473.00M	-988.00M	-2.21B	-1.21B

Seagate Tech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 288.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 288 is above the 20-day moving average (MA) of 247.50, above the 50-day MA of 228.68, and above the 200-day MA of 143.06, indicating a bullish trend. The MACD of 17.74 indicates Negative momentum. The RSI at 66.71 is Neutral, neither overbought nor oversold. The STOCH value of 91.13 is Negative, 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	80 Outperform	$55.71B	23.76	31.48%	0.13%	-16.35%	316.56%
PSTG	76 Outperform	$30.39B	214.83	10.04%	―	11.31%	-1.30%
NTAP	72 Outperform	$22.55B	19.96	123.00%	1.88%	3.45%	9.69%
STX	70 Outperform	$59.66B	35.86	―	1.08%	31.56%	106.00%
SMCI	64 Neutral	$23.63B	32.21	12.79%	―	12.22%	-48.34%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HPQ	56 Neutral	$23.64B	9.20	―	4.68%	3.11%	-3.54%

Seagate Tech Corporate Events

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.

The most recent analyst rating on (STX) stock is a Buy with a $275.00 price target. To see the full list of analyst forecasts on Seagate Tech stock, see the STX Stock Forecast page.

Seagate Technology’s Earnings Call Highlights Record Growth

Seagate Technology’s recent earnings call showcased a strong performance, underscored by record revenue growth and significant advancements in HAMR technology. The sentiment expressed was largely positive, reflecting confidence in the company’s financial health and strategic direction. Despite some concerns about supply constraints and potential seasonal effects, the overall outlook remains optimistic.

Seagate Technology Reports Strong Q1 2026 Results

Seagate Technology is a prominent player in the data storage industry, known for its innovative mass-capacity storage solutions. The company offers a comprehensive range of storage devices, systems, and services, catering to both edge and cloud environments.

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.

The most recent analyst rating on (STX) stock is a Buy with a $250.00 price target. To see the full list of analyst forecasts on Seagate Tech stock, see the STX Stock Forecast page.

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.

The most recent analyst rating on (STX) stock is a Buy with a $250.00 price target. To see the full list of analyst forecasts on Seagate Tech stock, see the STX Stock Forecast page.

Seagate Tech Appoints Thomas Szlosek to Board

On August 23, 2025, Seagate Technology appointed Thomas Szlosek to its Board of Directors and the Audit and Finance Committee. Szlosek, with over 30 years of financial leadership experience, is expected to enhance Seagate’s strategic direction with his expertise in diverse industries. This appointment reflects Seagate’s commitment to strengthening its governance and operational capabilities.

The most recent analyst rating on (STX) stock is a Buy with a $175.00 price target. To see the full list of analyst forecasts on Seagate Tech stock, see the STX Stock Forecast page.