Seagate Technology Holdings plc (NASDAQ: STX) saw its stock surge 5.68% in after-hours trading on Tuesday, following the company's strong fiscal second quarter 2025 earnings release. The data storage solutions provider's results were boosted by robust demand for its mass data storage products from cloud computing and artificial intelligence customers.

For the quarter ended December 27, 2024, Seagate reported revenue of $2.33 billion, up 49.5% year-over-year and beating analyst estimates of $2.32 billion. The company swung to a profit of $336 million, or $1.55 per diluted share on a GAAP basis, compared to a loss of $19 million in the prior year quarter. On a non-GAAP basis, Seagate's earnings per share came in at $2.03, surpassing consensus expectations of $1.88.

Seagate's solid performance was driven by growing demand for its high-capacity storage solutions to support AI and cloud computing workloads. The company noted structural improvements in its business as it focused on capturing value in an improving demand environment, powered by the AI revolution's insatiable appetite for data storage.

Looking ahead, Seagate provided an optimistic outlook for the fiscal third quarter 2025. The company forecasts non-GAAP earnings per share between $1.50 and $1.90, along with revenue guidance of $2.10 billion, plus or minus $150 million. These projections indicate continued strength in Seagate's performance, fueled by the increasing adoption of its innovative storage products like the HAMR-based Mozaic drives.

Seagate's CEO Dave Mosley highlighted the company's focus on advancing its technology roadmap to meet customers' growing needs for scalable, cost-efficient, and sustainable storage solutions. The ramp-up of HAMR-based products to cloud service providers was a key milestone, positioning Seagate to capitalize on the surging demand for mass data storage driven by AI and machine learning applications.