New York, January 28, 2026, 18:30 EST — After-hours update
- Seagate shares jumped 19% to $442.93 in after-hours, earlier hitting $456.70.
- The hard-drive maker surpassed quarterly estimates and projected stronger results than expected for the upcoming quarter.
- Storage and memory stocks followed suit, keeping the AI hardware rally widespread.
Shares of Seagate Technology Holdings plc (STX) jumped 19% to $442.93 in after-hours trading Wednesday, briefly climbing to $456.70 as investors rushed in on the back of a bullish outlook.
This shift is significant as investors turn their attention away from chipmakers toward the quieter segments of AI infrastructure. Storage stands out here. When data-center spending remains steady, suppliers able to deliver capacity while safeguarding margins usually get rewarded first.
Late Tuesday, Seagate projected fiscal third-quarter revenue and profits above Wall Street forecasts, driven by robust demand for its data storage gear as companies ramp up AI use. The company expects revenue of $2.90 billion, plus or minus $100 million, ahead of the $2.77 billion consensus. Adjusted earnings per share came in at an anticipated $3.40, plus or minus 20 cents, versus the $2.96 estimate, according to LSEG data. Seagate’s adjusted Q2 profit hit $3.11 per share on $2.83 billion in revenue, beating estimates. CEO Dave Mosley emphasized that modern data centers require storage solutions that operate “at exabyte-scale”—an exabyte equals roughly a billion gigabytes. 1
Seagate’s earnings report showed their December-quarter numbers hit new highs in gross margin, operating margin, and non-GAAP earnings. The company credited strong data-center demand and the rollout of HAMR-based Mozaic drives for the boost. HAMR, or heat-assisted magnetic recording, crams more data onto hard disks. They also generated $607 million in free cash flow and paid off $500 million in exchangeable notes due 2028. Seagate’s outlook factors in only a minimal hit from current tariff policies. 2
Seagate’s board announced a quarterly cash dividend of $0.74 per share, set to be paid on April 8 to shareholders recorded by March 25, according to a regulatory filing. The document also noted a webcast held by the company to review its results and outlook. 3
The momentum extended to other AI-related hardware stocks. Western Digital jumped roughly 11% to $279.70 in after-hours trading. Micron Technology climbed around 6%, reaching $435.28.
The broader market gave a lift as well. The S&P 500 surged past the 7,000 mark Wednesday, driven by bets on tech and AI-related stocks ahead of key earnings reports and a Federal Reserve announcement. 4
But this kind of surge works both ways. If cloud clients pull back on orders or pricing gets competitive, a forecast that seems cautious now can quickly tighten up.
Investors will be watching to see if Seagate can maintain its improved margins while scaling up production of new high-capacity drives, and if management’s forecast for demand remains solid heading into the next quarter.
Western Digital is set to release its earnings after the market closes on Thursday, January 29. The company will follow up with a conference call the same day. 5
