Seagate Reports Solid Q2, Analyst Optimistic About Advanced HAMR Technology Impact In 2025

Earnings and Financial Performance - Seagate Technology reported Q2 FY25 revenue of $2 33 billion, beating consensus estimates [1] - The company expects Q3 adjusted EPS of$1 70 at the midpoint, slightly above analyst estimates of ~$1 60 [2] - Q3 revenue guidance is$2 10 billion at the midpoint, in line with analyst estimates [2] - March quarter revenues declined by $200 million due to previously discussed supply chain issues [2] - The analyst raised CY25 EPS estimate to$8 85 from $8 60, above consensus of$8 06 [4] - CY26 EPS estimate remains unchanged at $11 00, above street view of$9 82 [4] Market and Industry Outlook - Management highlighted limited supply additions, build-to-order contracts, and long lead times of up to 52 weeks as factors supporting sustained demand [3] - Strong AI-driven EB growth is contributing to the positive outlook [3] - Some investors express concerns about a cyclical peak after six quarters of Nearline revenue recovery [3] Technology and Product Development - Management remains highly optimistic about the HAMR (Heat-Assisted Magnetic Recording) ramp in H2 FY25 [3] - HAMR technology is expected to drive incremental share gains, higher drive density, and improved gross margins [3] Stock Performance - STX shares increased by 7 97% to $109 32 at the last check on Wednesday [4]