Seagate Technology's Q1 Revenue Up 61% YoY, Beating Expectations; Shares Briefly Fell More Than 8% After Hours

Odaily reports: Seagate Technology released its financial results for the first quarter of fiscal year 2027, with revenue reaching $4.23 billion, up approximately 61% year-over-year, beating market expectations of $4.11 billion; adjusted earnings per share came in at $7.68, above the expected $7.39. Driven by AI infrastructure buildout, demand for the company's data storage products continues to grow.

On profitability, Seagate's first-quarter GAAP gross margin rose to 57.3% from 39.4% in the same period last year, while non-GAAP operating margin increased to 50.7% from 29%. Quarterly operating cash flow reached $1.69 billion, and free cash flow was $1.479 billion, up approximately 246% year-over-year, with both gross margin and free cash flow hitting record highs.

The company expects second-quarter revenue of $4.8 billion, plus or minus $100 million; adjusted earnings per share of $9.20, plus or minus $0.20, both above market expectations. Seagate CEO Dave Mosley said that AI-driven demand for data creation, storage, and reuse continues to grow, and the company's HAMR technology will further increase hard drive storage density.

Despite both results and guidance beating expectations, according to MSX.COM data, Seagate's stock price fell more than 8% at one point after hours. The stock closed regular trading at $667.85 that day, up nearly 150% year-to-date.