Dear Seagate Technology Stock Fans, Mark Your Calendars for July 28

The rise of artificial intelligence (AI) has brought about great demand for computational infrastructure. However, GPUs alone are not enough since every single AI model generates and stores vast amounts of data and needs high-capacity storage. That need has turned Seagate Technology (STX) into one of the biggest winners of the past year.

Now, investors await the next catalyst for the company on July 28, when Seagate is scheduled to report its fiscal fourth-quarter results. Analysts expect another period of exceptional growth since management provided an optimistic outlook on performance and profits.

About Seagate Technology Stock

Seagate is one of the largest manufacturers of hard disk drives (HDDs), mass capacity storage systems and data infrastructure solutions. Headquartered in Dublin, Ireland and Fremont, California, Seagate serves cloud service providers, enterprises, and PC manufacturers across the globe. The company currently has a market capitalization of $204 billion as one of the greatest beneficiaries of the AI infrastructure investment cycle.

Over the last 52 weeks, shares have surged approximately 458% and significantly outperformed the broader S&P 500 Index ($SPX). Despite the recent rally, STX stock also trades approximately 34% away from its 52-week high of $1,145.

STX stock has seen explosive price appreciation, but investors may find Seagate more attractively valued than other AI infrastructure stocks. STX stock trades at approximately 33.8 times forward earnings. However, the trailing multiple of 77.8 times is rather high as earnings catch up with the company's rapid expansion. The price-to-sales (P/S) ratio of 17.4 times is also a premium multiple for which investors seem to be ready to pay.

Unlike many other technology companies, Seagate provides income to its shareholders. In April, the company declared a quarterly dividend of $0.74 per share, payable on July 7. Over time, Seagate should continue to pay dividends and buy back shares.

Seagate Exceeded Estimates in Q3

Seagate reported another exceptional quarter on April 29 with its Q3 2026 results. Revenue increased to $3.11 billion, growing 44% year-over-year (YOY). Non-GAAP EPS reached $4.10 compared to $1.90 per share in the year-ago period. Non-GAAP gross margin also increased to 47%, showing improving pricing and product mix as storage demand grew due to AI development.

Cash flows were also quite good. In the quarter, Seagate generated approximately $1.1 billion in operating cash flow and $953 million in free cash flow. Management used this financial flexibility to repay $641 million of debt and returned another $191 million to the shareholders through dividends and share repurchases.

Looking ahead, management guided for Q4 revenue of approximately $3.45 billion, plus or minus $100 million, and non-GAAP EPS of $5, plus or minus $0.20. These numbers reflect sequential growth and indicate that management believes AI applications will continue to lead to structural storage demand growth.

CEO Dave Mosley said that Seagate has entered "a new era of structural growth" because of increasing AI data demand for higher capacity, more efficient storage solutions. The CEO also talked about improvements in areal density technology, which allows Seagate to produce high-capacity drives while reducing costs.

With Seagate Technology scheduled to report Q4 earnings on July 28, investors will be focused on whether management beats guidance — and whether the company's long-term AI storage thesis is right.

What Do Analysts Expect for Seagate Stock?

Despite its already incredible performance, analysts continue to look optimistically at Seagate stock with a consensus “Strong Buy” rating. Analysts view the company as one of the greatest beneficiaries of AI-driven storage demand growth with expanding margins, cash generation, and better earnings visibility. The mean price target of $1,015.43 implies potential upside of approximately 19% from current levels. The highest target price for STX stock stands at $1,600, while the lowest target price is $720 per share.