Seagate Technology (STX): Continued pricing momentum and HAMR ramp should bolster confidence in earnings power and capital returns -

Research evidence excerpt

Seagate Technology (STX): Continued pricing momentum and HAMR ramp should bolster confidence in earnings power and capital returns -

Equity Research

28 July 2026 | 9:30PM EDT

Seagate Technology (STX): Continued pricing momentum and HAMR

ramp should bolster confidence in earnings power and capital returns -

Key stock takeaways: We expect the stock to trade higher on significant upside to James Schneider, Ph.D.

+1(212)357-2929 |

guidance, despite elevated expectations heading into the print following a recent jim.schneider@gs.com

Goldman Sachs & Co. LLC

drawdown in the stock. Our investor conversations highlight bullish positioning

Khalil Fenina

heading into the quarter, based on strong CapEx and storage demand trends from +1(212)357-6392 |

hyperscalers, as well as tight supply dynamics in HDDs. We believe Seagate’s very khalil.fenina@gs.comGoldman Sachs & Co. LLC

strong incremental margins, which are being bolstered by the company’s HAMR Anmol Makkar

technology ramp, should allow the company to deliver outsized earnings growth over +1(212)357-1366anmol.makkar@gs.com|

the coming year - enabling increased capital returns as the company retires its Goldman Sachs & Co. LLC

Youremaining debt. We would be buyers of the stock, especially in light of the recent Luya +1(212)902-5297 | luya.you@gs.com

pullback, as we see Seagate as a key beneficiary of persistent industry tightness and Goldman Sachs & Co. LLC

firm pricing trends.

Quarterly results were above the Street: Seagate reported revenue of $3.63 bn,

above GS at $3.58 bn and the Street at $3.50 bn, while gross margin of 52.7% was

well above GS at 50.7% and the Street at 50.6%. Operating EPS of $5.71 was well

above GS at $5.26 and the Street at $5.12. By end market, Data Center revenue of