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

Cantor Fitzgerald analyst C.J. Muse expressed views on Seagate Technology Holdings PLC‘s STX second-quarter results while retaining a Neutral rating and a price target of $120.

Yesterday, the company reported second-quarter FY25 revenue of $2.33 billion, beating the consensus.

Seagate expects third-quarter adjusted EPS of $1.70 at the midpoint, against the analyst’s previewed estimate of ~$1.60. It also expects revenue of $2.10 billion at the midpoint versus the analyst’s previewed estimate of $2.10 billion.

The analyst says Seagate provided a better-than-expected report, with March quarter revenues down $200 million due to previously discussed supply chain issues.

Muse writes that while some investors fear a cyclical peak after six quarters of Nearline revenue recovery, management highlighted limited supply additions, build-to-order contracts, long lead times of up to 52 weeks, and strong AI-driven EB growth, supporting sustained demand.

The analyst notes that management remains highly optimistic about the HAMR ramp in the second half of FY25, expecting it to drive incremental share gains, higher drive density, and improved gross margins.

The analyst raised the CY25 EPS estimate to $8.85 (from $8.60; vs. consensus of $8.06) and reiterated the CY26 EPS estimate at $11.00 (vs. street view of $9.82).

Investors can gain exposure to the stock via StockSnips AI-Powered Sentiment US All Cap ETF NEWZ and Affinity World Leaders Equity ETF WLDR.

Price Action: STX shares are up 7.97% at $109.32  at the last check Wednesday.

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