Seagate raised its quarterly dividend 2.7% to $0.76 per share, but the forward yield is only about 0.5% at $624.20 as the share price outpaces the payout. The yield was about 1.26% a year ago, and shares are up 172.63% over the past year and 127.42% year to date. Rising margins on Mozaic drives drove the rally, with non-GAAP gross margin at a record 57.8% in the latest quarter, revenue of $4.23 billion up 61.0%, and non-GAAP EPS of $7.68 beating the $7.40 consensus. Management plans to focus on share buybacks, with $4.4 billion left on its authorization, while noting that hard drive demand is cyclical and the stock has fallen 31.92% over the past month. Guidance calls for December-quarter revenue of $4.80 billion and non-GAAP EPS of $9.20.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Seagate Just Raised Its Dividend. The 0.5% Yield Tells You Everything About This Stock’s Run
Read the original on Yahoo Finance ↗
Keywords
Seagatedividendsdata centersearnings
Open a keyword to see other news on the same topic.
Related news
- Seagate Technology Fell 25% in The Last Month But One Wall Street Analyst Says 140% Gains to Come
Seagate (STX) posted record earnings and guidance above Wall Street expectations, yet its stock fell 27.16% over the past month and sits 41.6% below its 52-week high of $1,143.27. Investors have grown worried that AI infrastructure spending may not last, and storage peers such as Western Digital also declined. Fiscal Q1 2027 revenue rose 61.0% year over year, with data-center customers taking 90% of last quarter's shipped capacity; non-GAAP EPS of $7.68 and revenue of $4.23B both beat estimates, though the size of the beat narrowed. The average target of 25 analysts is $1,091.58, while Melius Research holds the Street-high target of $1,600. For the December quarter, Seagate guided to revenue of $4.80B and EPS of $9.20.
- Seagate Simplifies High-Capacity Storage Scaling for AI and Cloud Infrastructure
Seagate Technology announced that its Mozaic drives, which use heat-assisted magnetic recording (HAMR) configured with shingled magnetic recording (SMR), are the first and only SMR drives added to Broadcom's approved vendor list for host bus adapters (HBAs). The HBA connects servers to storage and helps data centers manage large hard drive fleets. Microsoft Azure Storage has completed qualification of the Broadcom HBA with Seagate HAMR and SMR technology, providing a real-world reference at hyperscale. The companies say the move aims to make high-capacity storage easier to deploy as AI and cloud workloads drive continued data growth.
- Bitmine Immersion Technologies And 2 Top Growth Stocks To Watch
The article examines three high-growth stocks against a backdrop of Nvidia's nearly $10 billion commitment to AI across Europe. Bitmine Immersion Technologies generates about $61 million from crypto mining, is still loss-making with a short cash runway, and its appeal rests largely on its ETH holdings and related services. Rocket Lab earns about $544 million from Space Systems and $225 million from Launch Services, and its outlook depends heavily on the Neutron rocket program, whose failure would put the whole company at risk. Seagate Technology Holdings, which makes storage for data centers with about $12.2 billion in revenue, is closely watched through its HAMR technology milestones of 50% and then 70% penetration.
- Not Nvidia. Not Broadcom. This Storage Stock Could Be 2027's Hidden AI Winner.
Seagate (STX) supplies high-capacity hard drives for AI data centers, where demand for storing training data and running models keeps rising. In fiscal 2026, which ended July 3, revenue reached $12.2 billion, up 34% year over year, driven by stronger data center demand. Seagate says its nearline hard drive supply is mostly allocated through 2027, and strategic planning extends into 2028. The company has moved its Mozaic 4+ drives, with capacities up to 44 terabytes, into production with two leading cloud providers, while Mozaic 5+ is progressing toward qualification shipments in late 2027. The article treats these milestones as key points to watch.
- Rapid Growth, High Volatility, and Near 50% Upside Confound Seagate Technology Investors
Seagate Technology (STX) shares fell 15.09% in one week to $753.25, even though analysts made no downward earnings estimate revisions, and the average price target of $1,142.17 implies 51.6% upside. Fiscal 2026 revenue rose 34.06% to $12.195 billion with record free cash flow of $3.1 billion, and the stock is up 174.44% this year, though it sits about 34% below its 52-week high of $1,143.27 after Barron's flagged a Toshiba problem for hard drive makers. Management said nearline capacity is almost fully allocated through calendar 2027, and Seagate has beaten EPS estimates for five straight quarters, with fiscal Q1 EPS guidance of $7.30. Risks include data center sales making up 80% of revenue and reliance on a few hyperscalers, a beta of 2.081, competition from Toshiba and Western Digital, and exchangeable notes due 2028 that could dilute shareholders. Of the 25 covering analysts, 4 rate the stock Strong Buy, 18 Buy, 2 Hold and 1 Strong Sell.
- Western Digital ( NASDAQ : WDC ) Issues Quarterly Earnings Results , Beats Expectations By $0 . 53 EPS
Western Digital reported fiscal first-quarter EPS of $4.64, beating the consensus estimate of $4.11, on revenue of $4.38 billion, up 55.5% year over year and above analysts' $4.14 billion estimate. Gross margin reached 58.1% and free cash flow was $1.4 billion. Management guided for second-quarter revenue of about $5.1 billion and EPS of $5.80 ± $0.20, with gross margin of 60%–61%, citing robust demand for high-capacity HDDs with visibility from major customers through 2030–2031. The company also raised its quarterly dividend to $0.1750 from $0.15.
Related markets
Latest news
- Vertiv Guides for 38% Growth, GE Vernova's Orders Jumped 96%. Which AI Power Stock Is the Better Buy After the Sell-off?
Vertiv and GE Vernova, both suppliers of AI data center infrastructure, beat Wall Street estimates in their third-quarter reports. Vertiv's revenue rose 61% year over year and it expects 38% organic growth for the full year, while GE Vernova's revenue rose 27% and its orders jumped 96% organically, with full-year revenue guided up 22%-25%. Both stocks remain well below their all-time highs from earlier this year (45% and 24% respectively), after the Fed raised benchmark rates for the first time in three years this September. Vertiv faces supply constraints and possible margin pressure from its UtilityInnovation Group acquisition, while GE Vernova's Wind segment remains weak and its planned Trench Group deal could compress margins. The author expects Vertiv's EPS to grow faster (49% CAGR vs 24% from 2025 to 2028) and notes it trades at 25 times next year's earnings versus 37 times for GE Vernova, so if forced to choose one, the author would pick Vertiv.
- Why Robinhood thinks we're at the beginning of a prediction market supercycle
Robinhood CFO Shiv Verma says prediction markets are attractive because they are simple, show probabilities clearly, span many asset classes, and make the brokerage and crypto businesses better. The company recently announced KPI contracts on Apple, such as iPhone shipments, revenue and EPS, letting users express specific views without taking basis risk. Verma says prediction markets are up seven times year over year, with volume of about 6 billion monthly or quarterly, versus about 10 billion a day in Robinhood's equities business. The product currently serves mainly US retail investors, but institutions are making inquiries and the company expects global growth; Verma believes each new product tends to be additive and that over a five to 10 year view the business could become as large as the US equities market.
- More Americans Have Tried Crypto, But Few Are Sticking With It: Survey
An Ipsos survey for the DeFi Education Fund found 22% of U.S. adults have ever owned or used crypto, up from 18% in 2025, but past-year use held flat at 13%, with growth coming mostly from people who had stepped away. Only 4% have high trust in crypto exchanges, versus 42% for large national banks, and only 19% say the financial system is secure. Just 2% of respondents are very familiar with DeFi, though 40% say they would be at least somewhat likely to try it. Interest in learning about stablecoins fell to 7% from 11%, and about DeFi to 8% from 11%, even after the GENIUS Act set federal stablecoin rules. The survey polled 1,545 adults from Sept. 8 to 16 with a margin of error of plus or minus 2.8 percentage points.
- 'Wall Street Cares About Free Cash Flow Now': Bloomberg's Ed Ludlow on Buyouts and AI Spending
Bloomberg Tech host Ed Ludlow said Wall Street's growing demand for free cash flow is pushing Big Tech to cut costs as AI spending soars. He made the comments days after Microsoft Corp. (NASDAQ:MSFT) reportedly offered voluntary buyouts to about 60,000 employees.
- Chipotle Mexican Grill is about to report earnings. Here's what to expect
Chipotle Mexican Grill reports quarterly earnings after the bell on Wednesday. Based on LSEG analysts, the company is expected to post earnings of 29 cents per share and revenue of $3.29 billion, while StreetAccount estimates same-store sales growth of 1.5%. The article says Chipotle appears to have fully rebounded from a weak 2025, when traffic and same-store sales fell. Its shares have fallen nearly 22% this year, bringing market cap to about $36 billion, and Semafor reported the company hired advisors to defend against activist investors or an unwanted takeover.
- Why higher yields are making bonds attractive again
J.P. Morgan Asset Management global market strategist Stephanie Aliaga said higher yields have made fixed income more attractive in portfolios. She noted clients are wary of the AI trade, though she sees its fundamentals, particularly AI-related revenue growth, as still robust, while the market is entering a more discerning phase where higher financing costs separate business models. She still views the outlook for risk assets as constructive but stressed the need for protection in portfolios, as past recessions were largely missed by forecasts. On the Fed's expected December hike and possibly another in Q1 or Q2 next year, she believes this is already priced in; if inflation cools and geopolitical tensions do not flare up, markets could see relief that might also help parts of the AI trade that had become overstretched.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.