Seagate Technology plc Q3 2026 Earnings Recap

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.

Key Takeaways

• 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.