Evercore ISI raised its price target on Seagate Technology (NASDAQ:STX) to $450.00 from $330.00, while keeping an Outperform rating, following the company's fiscal second-quarter performance. The new target sits close to the analyst high of $465, according to InvestingPro data. Seagate shares have climbed roughly 278% over the past 12 months and are trading near a 52-week high of $383.88.
Seagate delivered revenue of $2.83 billion and earnings per share of $3.11 for the quarter, outpacing consensus estimates of $2.73 billion and $2.79, respectively. The company recorded revenue growth of 21.5% year-over-year, paced by robust demand in the data center market. Overall exabyte shipments rose 26% from a year earlier and increased 4.5% sequentially, reaching 190 exabytes during the period.
InvestingPro data shows Seagate's trailing twelve-month revenue rose 31.6% to $9.56 billion, underscoring continued momentum in sales across the business.
Margin dynamics and pricing
Gross margin expanded to 42.2%, an improvement of 207 basis points quarter-over-quarter and above the Street expectation of 40.8%. Management attributed margin improvement to customer uptake of Seagate's newest high-capacity products and more favorable pricing. Management commentary signaled that pricing per terabyte could be flat to modestly higher in future periods. For context, this quarter's gross margin outpaced the company's trailing twelve-month gross profit margin of 37%, as reported by InvestingPro.
InvestingPro also notes that Seagate has sustained dividend payments for 15 consecutive years.
Product roadmap and capacity
Seagate said shipments of its Mozaic 3 product surpassed 1.5 million units, accounting for roughly 27% of the company's total exabyte shipments. The Mozaic 4+ HAMR platform, which will offer capacities up to 44TB, is slated to enter volume production next quarter. Management additionally reported that nearline capacity is fully allocated for the remainder of the year and that demand visibility extends into 2028. These details reinforce the company's focus on high-capacity drives and nearline deployments in hyperscale and enterprise storage markets.
InvestingPro data lists Seagate's market capitalization at $81.6 billion.
Guidance and analyst revisions
For the March quarter, Seagate issued guidance above consensus, forecasting revenue of $2.9 billion and earnings per share of $3.40. By comparison, consensus estimates stood at $2.78 billion for revenue and $2.99 for EPS, implying sequential revenue growth of about 2.7% versus the historical seasonal declines often seen in the period.
InvestingPro data indicates seven analysts have raised their earnings estimates for the upcoming period, and the full-year EPS forecast stands at $12.15. The company is trading at a reported price-to-earnings ratio of 48.4, a valuation that InvestingPro characterizes as relatively low when viewed against Seagate's near-term earnings growth potential.
Fiscal Q2 2026 results recap
Seagate's fiscal Q2 2026 results included an EPS of $3.11, which exceeded the $2.79 forecast by an 11.47% surprise, and revenue of $2.83 billion versus an expected $2.73 billion. These beats highlight the company's recent operational performance and have been received positively by investors, reflecting confidence in Seagate's positioning within the Technology Hardware, Storage & Peripherals industry.
Bottom line
Evercore ISI's raise of the price target to $450 reflects confidence in Seagate's revenue trajectory, margin expansion and product roadmap tied to high-capacity storage solutions. Management's commentary on pricing per terabyte and the fully allocated nearline capacity through year-end, with demand visible into 2028, underpin the bullish case cited by the analyst. Market participants will watch upcoming production of the Mozaic 4+ HAMR platform, guidance execution and whether pricing trends remain stable or improve.