Key facts: Seagate (STX) Q1: $4.23B Revenue; HAMR, Dividend Hike

What happened

Seagate reported Q1 revenue of $4.23B, up 61% from a year earlier, with GAAP earnings per share of $7.59 and non-GAAP earnings per share of $7.68. It raised its dividend to $0.76 and guided Q2 revenue to about $4.8B and earnings per share to about $9.

Confirmed

Global impact / market context

Stronger revenue and profit give Seagate more cash to fund capital spending on HAMR technology, which raises how much data each drive can hold. A higher dividend returns more cash to shareholders, while the Q2 guidance suggests management expects demand to stay strong.

Analyst inference

Analysts cited in the article point to HAMR progress and pricing power as contracts near renewal, with Rosenblatt reaffirming a Buy rating and a $1,100 target. Seagate's CEO describes a multi-year growth phase, though supply constraints are noted as a limit on meeting cloud storage demand.

Analyst inference

What to watch

1. Seagate guided Q2 revenue to about $4.8B and earnings per share to about $9, so the actual results will show whether demand and pricing held up as expected. Confirmed
2. Watch progress on HAMR technology, which raises data density per drive, and whether upcoming contract renewals translate into higher prices and improved profit per sale. Proposed
3. Supply constraints cited in the article could cap how much Seagate ships even as cloud storage demand rises, limiting revenue upside and affecting capital spending plans. Analyst inference

Evidence

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