issued Wednesday, April 29, 2026 · 06:37 am
Seagate Technology on Tuesday expected fourth-quarter sales and profits to beat Wall Street expectations, betting on strong demand for its data storage hardware as companies ramp up adoption of artificial intelligence.
The company’s stock price rose about 16% in extended trading, accelerating the rise in the stock prices of its competitors. Western Digital rose 11% and SanDisk rose 4%. Memory chip maker Micron Technology rose about 3.5%.
As companies rush to implement AI to speed up processes and reduce costs, they’re also investing in storage to handle the massive amounts of data needed to create and run modern models.
Rising memory chip prices have also increased investor enthusiasm for the storage market, with Seagate stock more than tripling in 2025 but doubling so far this year.
According to data compiled by LSEG, Seagate expects fourth-quarter sales of US$3.45 billion, compared with expectations of US$3.16 billion, plus or minus US$100 million.
The company had expected quarterly adjusted earnings per share of $5 plus or minus 20 cents, compared to analysts’ expectations of $3.97.
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Seagate reported third-quarter revenue of US$3.11 billion, beating expectations of US$2.96 billion.
Earnings per share were $3.27, compared with $1.57 in the prior-year period. Reuters
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