Seagate Q1 Beats, HAMR Ramp Driving Growth

Seagate reported fiscal Q1 non‑GAAP EPS of $2.61 on revenue of $2.63 billion, both above Street estimates, and guided the current quarter to about $2.7 billion at the midpoint while giving adjusted EPS guidance near $2.75. Revenue rose roughly 21% year‑over‑year, driven by AI workloads and global cloud service providers, with the data‑center business accounting for about 80% of sales. The company is ramping its Mozaic HAMR drives—qualified by five major cloud providers with shipments above 1 million—and said cloud‑focused, high‑capacity production is largely under contract through 2026 with “clear visibility” into 2027. Management’s commentary and better‑than‑expected gross‑margin guidance suggested margin improvement (analysts noted Seagate hit a ~40% gross‑margin target ahead of schedule). Seagate raised its quarterly dividend 2.8% to $0.74 per share, and analysts including TD Cowen, Evercore and Wedbush raised price targets or reiterated positive ratings, sending shares sharply higher after the report. Shares have climbed more than 150% year‑to‑date as investors bet on AI tailwinds and tight hard‑drive supply into 2026.