Seagate Technology Holdings (STX), a leading data storage and hard drive manufacturer, has overtaken retail favorite AI software company Palantir Technologies (PLTR), to become the best-performing stock in the S&P 500 (SPX) this year.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Seagate shares have surged over 212% year-to-date, driven by strong profit recovery and rising demand for high-capacity storage drives used in AI and cloud data centers. The stock jumped 19% on Tuesday, closing at $265.62, after investors welcomed its latest earnings report and upbeat guidance. Seagate’s sharp rally pushed it ahead of Palantir, which now ranks second among 2025’s top S&P 500 performers.
Seagate’s Q1 FY26 Earnings Snapshot
Seagate delivered a strong start to Fiscal 2026 as global demand for data storage continued to climb. The company reported revenue of $2.63 billion for the fiscal first quarter, up 21% from a year earlier. Earnings reached $2.43 per share (GAAP) and $2.61 per share (non-GAAP), both exceeding the top end of its guidance.
Cash flow performance was also solid, with $532 million generated from operations and $427 million in free cash flow. Seagate returned $182 million to shareholders through dividends and buybacks, while increasing its quarterly dividend by 3% to $0.74 per share.
Chief Executive Officer Dave Mosley said the results reflected “strong execution and steady demand” for Seagate’s Mozaic HAMR high-capacity drives, which are now qualified with five of the world’s largest cloud providers. He added that the company expects continued growth as AI workloads and data generation expand worldwide.
Seagate’s latest results show that the company’s focus on high-capacity storage products is helping it benefit from the current rise in data use. With earnings now back on track, Seagate remains one of the top-performing technology stocks in 2025.
What Is the Target for Seagate Stock?
According to TipRanks, STX stock has a Strong Buy consensus rating based on 14 Buys, three Holds, and one Sell assigned in the last three months. At $267.50, the Seagate average share price target implies 0.71% upside potential.
