Seagate shares surged 8% after the company’s fiscal Q3 report, as revenue jumped 44% year-over-year, gross margins hit all-time highs, and management issued notably upbeat guidance. Investors responded positively to record free cash flow and strong commentary on accelerating storage demand tied to AI and cloud infrastructure buildout.

• Revenue grew 44% year-over-year, marking the tenth consecutive quarter of growth from cloud customers.
• Gross margins reached a record high, and non-GAAP operating income more than doubled.
• Free cash flow approached $1 billion, among the company’s highest ever levels.
• Guidance for Q4 was characterized as strong, with management raising annual growth targets to at least 20% over the next several years.
• Nearline hard drives accounted for close to 90% of total Exabyte shipments, and capacity is almost fully allocated through 2027 on extended customer contracts.