Why Seagate Technology Stock Was Winning This Week

So far this earnings season, one of the top beneficiaries of analyst price target raises has been computer storage specialist Seagate Technology (NASDAQ: STX). Week-to-date as of late Thursday night, the company's shares were up by almost 15%, according to data compiled by S&P Global Market Intelligence, thanks to a number of hikes after the company published its latest earnings release.

A good start to the new (fiscal) year

On Tuesday, Seagate unveiled its first quarter of fiscal 2026 figures. These showed that the tech hardware company's revenue ballooned by 21% year over year to $2.63 billion for the period. That was well higher than the $2.55 billion consensus analyst estimate.

Image source: Getty Images.

Net income not according to generally accepted accounting principles (GAAP) surged even higher, racing 73% higher to $583 million, or $2.61 per share. This also topped the average prognosticator expectation, which was $2.40 per share.

On top of that, Seagate also raised its dividend, although not by a significant amount. The next quarterly payout will be $0.74 per share, up from the current level of $0.72.

Join the party

In the wake of that earnings release, analysts tripped over themselves publishing bullish revisions of their Seagate takes, with a host of them raising their price targets.

One voice among this crowd was TD Cowen's Krish Sankar, who enacted a very hefty raise on the stock, to $270 per share from his preceding $175. He maintained his buy recommendation, unsurprisingly. According to reports, Sankar opined that the hard disk drive (HDD) market is moving into an up cycle, while Seagate management has shown good discipline with capital expenditures of late.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.