STX Stock Forecast & Price Target

Seagate Technology Holdings reported significant growth in its mass capacity revenue, reaching $1.9 billion, which reflects a 79% year-over-year increase and marks the sixth consecutive quarter of growth for this segment, driven by strong demand for nearline cloud storage solutions. The company also achieved a notable increase in free cash flow to $150 million with a healthy margin, suggesting improved operational efficiency and profitability, as well as the highest non-GAAP gross margin seen in a decade at 35.5%. This positive trend in financial performance underscores Seagate's strong positioning in the data storage market and supports a favorable outlook for its stock.

Seagate Technology Holdings is experiencing a decline in revenue in its "other business" category, which includes SSDs and systems, with a reported revenue of $156 million, slightly down from $164 million in the previous quarter, primarily due to falling SSD sales. Additionally, revenue estimates for FY25 have been revised downward to $8.99 billion and a Non-GAAP EPS of $7.53, indicating a deterioration from earlier forecasts, which projected higher figures, contributing to an overall outlook of weakened financial performance. Furthermore, external factors, such as currency value fluctuations, may further adversely affect HDD demand, amidst uncertain future developments impacting the company's financial stability.