Seagate Technology 2025 Q3 Earnings Beats Expectations as Net Income Soars 1260%

Seagate Technology (STX) reported its fiscal 2025 Q3 earnings on May 02nd, 2025. seagate technology exceeded analyst expectations by delivering adjusted EPS of $1.90, well above the anticipated $1.74, and revenue reaching $2.16 billion, surpassing the projected $2.13 billion. The company’s Q4 guidance also came in above consensus, forecasting revenue between $2.25 billion and $2.55 billion and adjusted EPS from $2.20 to $2.60, further underscoring its strong performance and confident outlook.

Revenue

The total revenue of Seagate Technology increased by 30.5% to $2.16 billion in 2025 Q3, up from $1.66 billion in 2024 Q3.

Earnings/Net Income

Seagate Technology's EPS rose 1233.3% to $1.60 in 2025 Q3 from $0.12 in 2024 Q3, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $340 million in 2025 Q3, marking 1260.0% growth from $25 million in 2024 Q3. The significant EPS improvement reflects robust financial health and operational efficiency.

Post-Earnings Price Action Review

Following the earnings release, Seagate Technology (STX) stock demonstrated positive returns based on backtest data. The stock tends to perform well in the short term after the earnings report when revenue is disclosed, indicated by a 3-Day win rate of 53.94%, 10-Day win rate of 54.58%, and a 30-Day win rate of 55.38%. This suggests a favorable short-term impact on stock performance. Similarly, net income and diluted EPS disclosures also contribute to positive stock performance in the medium and long term, each showing a 10-Day win rate of 54.58% and a 30-Day win rate of 55.38%. In conclusion, Seagate Technology's stock price shows a higher win rate in the short, medium, and long term following revenue, net income, and diluted EPS releases, suggesting potential opportunities for investors amid stock price fluctuations post-earnings. However, while past performance can be indicative of future trends, it is not a guarantee of future results, with other factors like market conditions playing a significant role.

CEO Commentary

“Seagate delivered another solid quarter of profitable year-on-year growth and margin expansion, elevating our non-GAAP EPS to the top of our guidance range. Our performance underscores the structural enhancements we’ve made to our business model and a healthy supply/demand environment for mass capacity storage,” said Dave Mosley, CEO of Seagate Technology. He emphasized the company's focus on strategic enhancements and the favorable conditions in the market, reflecting confidence in sustaining growth despite challenges.

Guidance

Seagate Technology anticipates fourth-quarter revenue between $2.25 billion and $2.55 billion and adjusted earnings per share ranging from $2.20 to $2.60. The company expects to continue driving profitable growth, highlighting ongoing demand for mass-capacity storage solutions in its market outlook.

Additional News

In recent developments, Seagate Technology has been actively engaging in strategic initiatives to bolster its market presence. The company announced a significant share buyback program, demonstrating strong confidence in its financial position and value proposition to investors. Additionally, Seagate has introduced new leadership changes, appointing a new CFO to drive financial strategy and optimize operational efficiency. The company has also expanded its product portfolio with cutting-edge data storage solutions designed to meet the growing demand for mass-capacity storage, particularly from cloud-based customers. These moves reflect Seagate's commitment to maintaining its competitive edge and capitalizing on emerging market opportunities.

Ask Aime: How did Seagate Technology's Q3 earnings surpass expectations, and what's the outlook for its stock after the earnings release?