Results: Seagate Technology Holdings plc Beat Earnings Expectations And Analysts Now Have New Forecasts

It's been a good week for Seagate Technology Holdings plc (NASDAQ:STX) shareholders, because the company has just released its latest quarterly results, and the shares gained 8.4% to US$90.01. Seagate Technology Holdings reported US$2.2b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$1.57 beat expectations, being 9.7% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the most recent consensus for Seagate Technology Holdings from 19 analysts is for revenues of US$10.1b in 2026. If met, it would imply a meaningful 19% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to expand 18% to US$8.31. In the lead-up to this report, the analysts had been modelling revenues of US$10.0b and earnings per share (EPS) of US$8.33 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for Seagate Technology Holdings

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$107. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Seagate Technology Holdings at US$140 per share, while the most bearish prices it at US$60.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that Seagate Technology Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 15% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 9.9% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 5.8% annually. So it looks like Seagate Technology Holdings is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Seagate Technology Holdings going out to 2027, and you can see them free on our platform here..

Even so, be aware that Seagate Technology Holdings is showing 4 warning signs in our investment analysis , and 3 of those are a bit unpleasant...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.