Seagate’s 48% Revenue Surge Silences Growing AI Infrastructure Skeptics

Seagate Technology just handed the AI infrastructure trade a much-needed win, and it came from hard drives, an unlikely corner of the market.

Seagate's shares had slid roughly 8% into Tuesday's print as investors had soured on stretched AI valuations across chip and storage names. However, Seagate's fiscal fourth-quarter results flipped that mood almost overnight.

A Beat That Silences the Doubters

Revenue climbed 48% year over year to $3.63 billion, beating Wall Street's estimate near $3.5 billion. Non-GAAP earnings per share came in at $5.71, well above the $5.10 analysts expected.

That gap matters because it shows Seagate isn't just selling more drives. It's making far more profit on each one. Non-GAAP gross margin backs that up, jumping to 52.7% from 37.9% a year earlier.

Seagate also banked a record $3.1 billion in free cash flow for the full fiscal year, cash it can use to pay down debt, reward shareholders, or reinvest in its AI storage push.

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