Mizuho Lifts Seagate (STX) to $475, Citing Continued Storage Upswing

Company Overview - Seagate Technology Holdings plc is a global leader in data storage solutions, designing and manufacturing hard disk drives, solid-state drives, and storage systems for enterprise, cloud, and consumer applications [4] Financial Performance - Seagate reported December-quarter revenue of $2.83 billion, which is a 7% increase sequentially and a 22% increase year over year [3] - Non-GAAP gross margin expanded to 42.2%, up 210 basis points sequentially, while non-GAAP operating margin rose to 31.9%, an increase of 290 basis points quarter over quarter [3] - Non-GAAP EPS reached $3.11, up 19% sequentially [3] - The company achieved record levels in exabyte shipments, gross margin, operating margin, and non-GAAP EPS [3] Future Guidance - March-quarter guidance calls for revenue of $2.9 billion plus or minus $100 million, implying approximately 34% year-over-year growth at the midpoint [3] - Non-GAAP EPS is projected to be $3.40 plus or minus $0.20, with operating margin expected to approach the mid-30% range [3] - Management anticipates continued sequential improvement in both revenue and profitability through calendar 2026, reinforcing confidence in sustained operating leverage and earnings expansion [3] Analyst Ratings - Mizuho increased its price target on Seagate to $475 from $440 and maintained an Outperform rating, reflecting continued confidence in earnings momentum and favorable industry conditions within mass-capacity storage [1]