Shares of Seagate Technology PLC (STX) surged 5.63% in pre-market trading on Wednesday, driven by the company's strong fiscal second quarter 2025 earnings results and optimistic outlook fueled by growing demand for its mass data storage solutions from cloud computing and artificial intelligence customers.
For the quarter ended December 27, 2024, Seagate reported record revenue of $2.33 billion, up 49.5% year-over-year, and swung to a profit of $1.55 per share on a GAAP basis. The company's performance was boosted by significant growth in its cloud sector, with nearline product revenue nearly doubling year-over-year. This surge in demand reflects the increasing adoption of Seagate's high-capacity storage solutions to support AI and cloud computing workloads.
Looking ahead, Seagate provided an upbeat outlook for the fiscal third quarter, forecasting non-GAAP earnings per share between $1.50 and $1.90 and revenue guidance of $2.10 billion, plus or minus $150 million. The company's strong results and positive guidance highlight its position to capitalize on the surging demand for mass data storage driven by AI and machine learning applications, as well as its successful execution of its technology roadmap, including the ramp-up of its innovative HAMR-based Mozaic drives to cloud service providers.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.