Investing.com — Benchmark upgraded Seagate Technologies to “Buy” and raised its price target to $120 citing strong cloud and AI-driven demand as key growth drivers, which helped the storage company beat quarterly earnings estimate.
Seagate’s fiscal Q2 results exceeded expectations, with non-GAAP earnings of $2.03 per share on revenue of $2.33 billion, ahead of consensus estimates of $1.88 per share on $2.32 billion in revenue. HDD sales rose 57% year-over-year to $2.17 billion, while mass capacity sales climbed 79% year-over-year to $1.89 billion.
Seagate’s PMR drives in the mid-to-high 20 TB range and the company announced ramp-up of its 36 TB Mozaic drives, amid growing storage demands.
“Driven by robust cloud demand that improved margins, Seagate posted upside F2Q25 results. While a supply constraint is expected to impact the March quarter, we see continued strong cloud demand along with growing AI business driving results in 2H25 and 2026,” analyst said.