Seagate Technology reported June-quarter revenue of $3.6 billion, up 48% from a year ago and ahead of the FactSet consensus, sending its stock up 5.2% in after-hours trading Tuesday. Storage and memory peers rebounded with it after a regular session in which Chinese chip-technology developments knocked the group down.
Seagate Technology's stock staged a comeback in after-hours trading Tuesday as investors got a fresh sign of ongoing demand for storage products. Shares were up 5.2% in after-hours action after closing down 8.5% on Tuesday.
Seagate tops Wall Street on revenue and earnings
The data-storage maker reported fiscal fourth-quarter revenue of $3.6 billion, up 48% from a year ago, ahead of the FactSet consensus for $3.5 billion. Adjusted earnings of $5.71 per share for the June quarter also topped expectations for $5.10.
Seagate expects "durable long-term demand for mass capacity storage" as artificial intelligence drives the creation of more data, CEO Dave Mosley said. For the full fiscal year 2026, the company said revenue grew 34% to $12.2 billion against the $12 billion analysts tracked by FactSet had been looking for, alongside a record $3.1 billion in free cash flow.
Guidance points higher
Management's outlook for fiscal Q1 2027 runs above the quarter just reported on both revenue and earnings. Seagate projected approximately $4.1 billion in revenue and an adjusted EPS of $7.30, a sequential revenue jump of roughly 14% and an EPS leap of nearly 28%. Behind the acceleration sits the Mozaic product line, built on heat-assisted magnetic recording and now ramping with major cloud customers.
China chip developments drove the earlier selloff
Shares of the memory and storage companies had extended declines Tuesday following chip-technology developments in China that have spooked investors in Asia and the U.S. Chinese memory-chip maker ChangXin Memory Technologies saw its stock pop 466% on its debut in Shanghai on Monday, followed by a Monday report from The Information that a Chinese state-backed semiconductor-equipment company has started mass producing deep-ultraviolet lithography machines for domestic chip makers including Semiconductor Manufacturing International Corp and Hua Hong. South Korean memory-chip makers SK Hynix and Samsung Electronics plunged 14% and 13%, respectively, on Tuesday.
Seagate's print lifted the group after hours. Western Digital rose 2.5% after having shed 6.9% in the regular session. Sandisk was up 2.8% in extended trading after ending the trading day down 14.3%. Micron Technology was up 1.4% after having closed 8.8% lower. SK Hynix's American depositary receipts were up 4% in after-hours trading after falling 8.9% on Tuesday.
Sylvia Jablonski, chief investment officer at Defiance ETFs, said the market was reacting to the strategic implications rather than the near-term commercial impact, and that China's reported progress on DUV systems is something to watch over the long term.
Sources: MarketWatch, Crypto Briefing
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