Seagate Technology Beats Q4 Estimates On Continued Demand Strength From Cloud Customers

Seagate Technology Holdings STX reported fourth-quarter financial results for fiscal 2025 after the market close on Tuesday. Here’s a rundown of the report.

• Q4 Revenue: $2.44 billion, versus estimates of $2.42 billion

• Q4 Adjusted EPS: $2.59, versus estimates of $2.43

STX shares are currently under heavy selling pressure. See the chart here.

Seagate said it generated $508 million in cash flow from operations and $425 million in free cash flow in the quarter. The company had $891 million in total cash and cash equivalents at the end of the quarter.

“Seagate’s strong FQ4 performance underscores our commitment to profitable growth, marked by a 30% year-over-year revenue increase, record gross margin, and non-GAAP EPS expanding to the top of our guidance range,” said Dave Mosley, CEO of Seagate.

“These achievements reflect the structural enhancements we’ve implemented in our business and ongoing demand strength from cloud customers for our high-capacity drives.”

Seagate’s board declared a quarterly cash dividend of 72 cents per share, payable on Oct. 9 to shareholders of record as of Sept. 30. The company paid $153 million of cash dividends in the second quarter.

Guidance: Seagate expects fiscal first-quarter revenue to be in the range of $2.35 billion to $2.65 billion versus estimates of $2.5 billion, according to Benzinga Pro. The company sees first-quarter adjusted earnings of $2.10 to $2.50 per share versus estimates of $2.28 per share.

STX Price Action: Seagate shares were down 7.64% in after-hours, trading at $141.02 at the time of publication on Tuesday, according to Benzinga Pro.

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