By Connor Hart

Seagate Technology swung to a profit in its fiscal second quarter, boosted by an increased need for data storage as demand for artificial intelligence continues to grow.

The mass-capacity data storage company on Tuesday reported a profit of $336 million, or $1.55 a share, for its three months ended Dec. 27, compared with a loss of $19 million, or 9 cents a share, a year earlier.

Adjusted per-share earnings came in at $2.03, ahead of the $1.88 that analysts surveyed by FactSet were expecting.

Revenue jumped 50% to $2.33 billion, in line with analyst expectations, according to FactSet.

Chief Executive Dave Mosley said these results demonstrate structural improvements in the company's business, as well as its focus to capture value in an improving demand environment.

"We are advancing our technology roadmap to meet our customers' growing need for scalable, cost efficient and sustainable storage solutions in the age of AI," he said.

For the current quarter, Seagate forecast adjusted per-share earnings between $1.50 and $1.90, as well as revenue between $1.95 billion and $2.25 billion. Analysts surveyed by FactSet project adjusted earnings of $1.70 a share and sales of $2.19 billion.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

January 21, 2025 16:30 ET (21:30 GMT)

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