Seagate crushes earnings expectations, reinforcing the AI infrastructure trade

Seagate just reminded everyone that the AI boom isn’t limited to GPU makers. The hard drive company posted fiscal Q4 2026 results on July 28 that blew past Wall Street expectations, and the forward guidance was even more aggressive, sending a clear signal that enterprise demand for AI-related storage infrastructure is accelerating, not plateauing. Seagate reported adjusted earnings per share of $5.71 for fiscal Q4 2026. Analysts had been expecting somewhere between $5.04 and $5.12. Revenue came in at roughly $3.6 billion for the quarter. Just one quarter earlier in Q3, the company pulled in $3.11 billion with a non-GAAP EPS of $4.10, both of which also topped projections. Seagate’s management projected fiscal Q1 2027 revenue of approximately $4.1 billion and an adjusted EPS of $7.30. That represents a sequential revenue jump of roughly 14% and an EPS leap of nearly 28% from the already-strong Q4. The engine behind Seagate’s acceleration is its Mozaic product line, which uses a technology called heat-assisted magnetic recording, or HAMR. CEO Dave Mosley has pointed to artificial intelligence as a fundamental amplifier of data creation, arguing that the sheer volume of information be...