Seagate Technology Holdings PLC (NASDAQ:STX) shares are trading higher Wednesday after the company reported better-than-expected second-quarter financial results and issued third-quarter guidance above estimates. Also, Rosenblatt raised its price target on the stock from $370 to $500.
Seagate reported adjusted earnings per share of $3.11, beating the consensus estimate of $2.81. In addition, the company reported revenue of $2.82 billion, beating the consensus estimate of $2.73 billion.
GAAP gross margin came in at 41.6%, while non-GAAP gross margin was 42.2%. The company generated $723 million in cash flow from operations and $607 million in free cash flow during the quarter.
Seagate also declared a quarterly cash dividend of $0.74 per share, payable on April 8, 2026, to shareholders of record as of March 25, 2026.
"Our December quarter results exceeded our expectations on both the top and bottom line, setting new records for gross margin, operating margin, and non-GAAP EPS," said Dave Mosley, Seagate's chair and CEO.
The company sees third-quarter adjusted earnings per share of $3.20 to $3.60, versus the consensus estimate of $2.96. In addition, the company sees revenue of $2.80 billion to $3.0 billion, versus the consensus estimate of $2.76 billion.
Technical Analysis Of Seagate
Currently, Seagate is trading 37.2% above its 20-day simple moving average (SMA) and 66.5% above its 100-day SMA, demonstrating significant short-term and longer-term strength. Shares have increased 332.67% over the past 12 months and are currently positioned closer to their 52-week highs than lows, indicating a robust upward trend.
The RSI is at 71.54, which is considered overbought territory, suggesting that the stock may be due for a pullback. Meanwhile, MACD is above its signal line, indicating bullish momentum in the stock.
The combination of overbought RSI and bullish MACD suggests mixed momentum, indicating that while the stock is strong, it may face some resistance in the near term.
Seagate Stock Soars Higher
At the time of publishing, Seagate share are trading 20.27% higher at $447.11, according to data from Benzinga Pro.
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