TLDR Wall Street anticipates Seagate’s Tuesday earnings will show $5.10 EPS alongside $3.5 billion in quarterly revenue Analyst firm Wedbush upgraded STX price target from $825 to $1,000 whil
Shares of Seagate Technology (STX) climbed 2.5% to $872.53 during Monday’s premarket session following a difficult trading period. The data storage manufacturer is scheduled to release its quarterly financial results after market close on Tuesday, July 28.
Seagate Technology Holdings plc, STX
Over the trailing twelve months, the stock has skyrocketed more than 450%, establishing itself as a standout performer in the artificial intelligence investment wave. However, the current month has presented challenges. STX has declined 11% throughout July, with Friday’s session alone contributing a 6% loss. Should this trend persist, it would mark the company’s weakest monthly showing since March 2025.
Seagate concluded Friday’s trading session marginally above its 50-day moving average line.
Matt Bryson, an analyst covering the sector for Wedbush, reaffirmed his Overweight stance on Monday while elevating his valuation target to $1,000 from the prior $825 level. His outlook anticipates Seagate will surpass Wall Street’s consensus projections, fueled by modest pricing improvements and an enhanced revenue composition.
“We believe marginal pricing gains paired with superior product mix dynamics should enable Seagate to once more deliver results exceeding expectations,” Bryson stated in his research note.
According to FactSet’s compilation of Street forecasts, analysts collectively project earnings of $5.10 per share—representing a 96% year-over-year increase—accompanied by revenue totaling $3.5 billion, reflecting 43% growth.
Bryson highlighted that both demand pressures and supply limitations within the hard-disk drive sector are projected to persist through 2027. Major cloud infrastructure operators are the primary drivers of this sustained demand, utilizing HDDs for archiving the enormous data volumes required for artificial intelligence model development.
The HDD marketplace is largely controlled by Seagate and Western Digital, with both companies emerging as significant winners from the surge in AI-related infrastructure investments.
An important consideration involves current long-term supply contracts between HDD manufacturers and cloud giants, which may constrain immediate pricing power. Nevertheless, a fresh round of agreements expected to commence in late 2026 should feature elevated average selling prices, positioning this as a positive catalyst extending through 2027, according to Bryson’s analysis.
Wedbush simultaneously elevated its valuation target for Western Digital to $650 from $540, with Bryson preserving his Overweight designation for that company as well.
“Our view is that WDC should deliver results exceeding consensus forecasts, with potentially greater upside opportunity given management’s relatively cautious gross margin guidance,” Bryson commented.
Western Digital’s earnings announcement is scheduled for August 5. Street consensus figures point to WDC earnings of $3.30 per share on quarterly revenue of $3.7 billion.
STX, WDC, Micron (MU), and Sandisk (SNDK) frequently move in tandem and have all experienced July declines.
Seagate holds an IBD Composite Rating of 87 out of a possible 99, ranking it seventh within the Computer-Hardware/Peripherals industry classification.
For Seagate’s fiscal fourth quarter, the analyst consensus estimate stands at $5.08 earnings per share on $3.49 billion in revenue, based on projections compiled by Seeking Alpha.
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