Seagate surges revenue, beats forecasts on AI demand

Seagate's Q4 revenue grew 48% YoY to $3.63B, beating forecasts. Non-GAAP EPS hit $5.71. AI-driven storage demand fuels growth, with strong outlook for next quarter.

Seagate surprised the market with a 48% year-over-year revenue growth in Q4 fiscal 2026, reaching $3.63 billion and surpassing Wall Street forecasts. Non-GAAP EPS was $5.71, also exceeding expectations, while non-GAAP gross margin rose to 52.7%. The company projected revenue of $4.1 billion for the next quarter, highlighting persistent storage demand driven by artificial intelligence. The hard drive segment stood out, showing that data center expansion benefits even less visible components. Seagate reported record free cash flow of $3.1 billion for the fiscal year, strengthening its financial position and supporting reinvestment in its AI storage strategy. The company credited strong cloud data center demand and disciplined execution, anticipating continued momentum in 2027.