Seagate Technology shares surge 20.40% after hours after exceeding earnings estimates and raising guidance on AI-driven demand and data center growth.

Seagate Technology surged 20.40% in after-hours trading following a record-breaking Q2 2025 earnings report, with non-GAAP EPS of $3.11 exceeding estimates by 12.2% and revenue reaching $2.83 billion, surpassing consensus by 3.7%. The stock’s rally was driven by robust demand for high-capacity storage in AI-driven data centers, with revenue from this segment climbing 28% year-over-year to $2.2 billion. Analysts highlighted Seagate’s HAMR technology momentum, including 1.5 million Mozaic-based HAMR units shipped by year-end and pending Mozaic 4 product ramp-ups. BofA Securities’ upgraded price target to $450 from $400, while management’s conservative guidance—now exceeding expectations—underscored sustained demand and pricing discipline. Tight supply-demand dynamics and long-term cloud customer contracts further reinforced optimism, positioning Seagate to outperform traditional storage cycles through AI infrastructure growth.