Seagate (STX) Surges 9% After-Hours on Strong AI-Driven Earnings and Outlook

Seagate Technology (STX) beat quarterly estimates and provided stronger-than-expected Q3 guidance, with shares jumping 9% in after-hours trading on Tuesday, January 27, 2026, as AI demand continues to fuel data storage needs. The company reported Q2 revenue of $2.83B versus $2.73B expected and EPS of $3.11 compared to $2.79 forecast. For Q3, it projected revenue of $2.9B against a $2.79B estimate and EPS of $3.40 versus $3.01 consensus. CEO Dave Mosley highlighted growing demand for high-capacity, cost-effective storage solutions in AI-driven data centers. Seagate, a major HDD manufacturer and competitor to Western Digital (WDC), has seen its stock rise 271% over the past 12 months. The storage industry is expected to see low double-digit growth in coming years as capacity shipments increase despite pricing pressure.