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STXBearishEarningsnews
High materiality8/10

Seagate Beat Estimates, Guides Higher; Shares Slump After Hours

Oct 27, 2026, 4:50 PM EDT1 sourcesAI-analyzed
Why it may matterVerify against the original reporting

Despite a solid beat and strong cash flow, the stock sold off post-earnings, signaling skepticism over valuation or guidance; typical of high-visibility tech hardware names when near-term expectations are reset.

AI summary

What happened, with direct paths to the underlying reporting

Seagate posted a strong Q1 FY2027 with EPS of $7.68 and revenue of $4.23B, topping expectations. Management highlighted record profitability and the highest free cash flow in the quarter, while guiding for solid Q2 revenue and higher earnings than analysts expect. Despite the beat, the stock declined in after-hours trading, suggesting investors are weighing the valuation against near-term upside and potential multiple expansion.

  • Q1 FY2027 EPS $7.68 vs $7.42 consensus; revenue $4.23B vs $4.14B.
  • CFO $1.7B and free cash flow $1.5B; Seagate touts record profitability.
  • Q2 guidance: adj EPS $9.00–$9.40; revenue $4.7–$4.9B vs consensus.
  • STX fell ~8.6% after hours to $610.21 despite the beat.

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StockNews.AI groups source reporting, classifies the event, and measures subsequent price movement. This is informational research, not investment advice. Prices may be delayed or unavailable.