Western Digital Corp (NASDAQ:WDC) shares are surging in Tuesday’s after-hours session in sympathy with Seagate Technology Holdings (NASDAQ:STX), which popped after reporting strong earnings results.

What Happened With Seagate

Seagate beat analyst estimates on the top and bottom lines in its fiscal third quarter, reporting revenue of $3.11 billion versus estimates of $2.95 billion, and adjusted earnings of $4.10 per share versus estimates of $3.50 per share.

“Seagate delivered outstanding March quarter results, exceeding the high end of our revenue and EPS guidance, achieving record margin performance, and generating close to $1 billion in free cash flow,” said Dave Mosley, chair and CEO of Seagate.

“We believe Seagate is entering a new era of structural growth as AI applications amplify data creation and support sustained storage demand.”

Seagate also raised its fourth-quarter outlook for both revenue and earnings per share well above analyst estimates. The company anticipates revenue of $3.35 billion to $3.55 billion and adjusted earnings of $4.80 to $5.20 per share.

Why It Matters For Western Digital

Seagate and Western Digital often trade in tandem because both are major players in the data storage market, with performance tied to demand drivers like cloud, AI and enterprise storage spending.

Seagate’s strong quarterly results and optimistic commentary around sustained storage demand is driving optimism about Western Digital’s upcoming report, which is due after the market close on Thursday.

Analysts currently expect Western Digital to report revenue of $3.24 billion and earnings of $2.38 per share, according to Benzinga Pro.

WDC Shares Soar After The Close

WDC Price Action: Western Digital shares were up 10.72% in after-hours, trading at $432.92 at the time of publication on Tuesday, per Benzinga Pro. With Tuesday’s over 10% after-hours surge, Western Digital shares are now up more than 855% over the past year.

Read Also: Seagate Stock Jumps After Q3 Beat-And-Raise

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