Seagate Technology Holdings Plc (NASDAQ:STX) surged over 18% in after-hours trading on Tuesday following the company's fiscal third-quarter 2026 results, which highlighted strong profitability and continued momentum tied to AI-driven demand.

Q3 Result

Seagate reported quarterly revenue of $3.11 billion, up from $2.16 billion in the same period last year. The company posted GAAP diluted earnings per share of $3.27, while non-GAAP diluted EPS came in at $4.10.

Net income rose to $748 million, compared to $340 million a year earlier, reflecting significant year-over-year growth. The company also delivered strong margins, with GAAP gross margin at 46.5% and non-GAAP gross margin at 47.0%.

Seagate generated $1.1 billion in operating cash flow and $953 million in free cash flow during the quarter. The company also strengthened its balance sheet by retiring $641 million in debt and returning $191 million to shareholders through dividends and share repurchases.

Management highlighted that results were driven by increasing demand linked to artificial intelligence, which is accelerating data creation and boosting long-term storage needs.

Read Also: Varonis Systems Stock Jumps 18% After Strong Q1 Results, AI-Driven Growth Outlook

Outlook

For the fiscal fourth quarter of 2026, Seagate expects revenue of $3.45 billion, plus or minus $100 million. The company guided for non-GAAP diluted EPS of $5.00, plus or minus $0.20.

The company noted that its outlook assumes minimal impact from tariffs and ongoing geopolitical conditions, based on current expectations.

Trading Metrics, Technical Analysis

The stock has a market capitalization of $129.72 billion and has traded within a 52-week range of $77.56 to $592.84. Despite the latest move, shares were already near the higher end of that range prior to the after-hours spike.

Over the past year, Seagate stock has gained 609.60%, reflecting a strong long-term uptrend.

Price Action: Seagate closed the regular session at $579.03 before surging to $687.00 in after-hours trading following the earnings release.

Benzinga's Edge Stock Rankings indicate that STX is showing a positive price trend across short-, medium-, and long-term time frames, aligning with the stock's sustained momentum.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Read Also: Bitcoin, Ethereum, XRP Slide, Dogecoin Flat As 'Fear' Sentiment Prevails: Analyst Expects BTC Bull Run Before 'Massive' Financial Crisis

Photo courtesy: Shutterstock