Seagate reported Q4 fiscal 2026 earnings of $5.71 per share and $3.63 billion in revenue, beating consensus estimates of $5.09 and $3.49 billion respectively. The storage maker shipped 218 exabytes in the quarter, with data center customers representing 89% of shipments. Adjusted gross margin expanded to a record 52.7%, up 570 basis points sequentially.
The company issued aggressive guidance for Q1 2027, forecasting $4.1 billion in revenue—56% year-over-year growth—with adjusted EPS of $7.30, far exceeding the Street estimate of $3.75 billion. Management indicated that nearline exabyte capacity is largely locked in through calendar 2028, with customers planning procurement needs into 2029. CEO Dave Mosley emphasized durable long-term demand driven by AI data generation and the ramp of Mozaic 4 (heat-assisted magnetic recording) drives up to 44 TB.
Seagate's nearline capacity bookings through 2029 and 56% forward guidance signal sustained cloud hyperscaler commitment to AI infrastructure storage. Physical AI applications—robotics, autonomous systems—are expected to drive further incremental demand. Shares jumped 8% in after-hours trading after a 30% retreat from June highs, marking a critical sentiment test for whether AI capex remains a structural multi-year tailwind.