STX Stock Forecast & Price Target

Seagate Technology Holdings demonstrated significant growth in its mass capacity revenue, reaching $1.9 billion, which represents a 9% increase quarter-over-quarter and an impressive 79% increase year-over-year, largely driven by strong nearline cloud demand. The company's free cash flow saw a considerable rise to $150 million in the second quarter of FY25, reflecting a substantial improvement from the prior quarter's $27 million, while non-GAAP gross margin reached a decade-high of 35.5%, exceeding market expectations. This robust financial performance, marked by consistent growth in key revenue segments and enhanced cash flow, underscores a positive outlook for Seagate’s stock.

Seagate Technology Holdings has reported a decline in revenue within its "other business" category, indicating challenges in the SSD segment, which could negatively impact overall financial performance. The company's forecast for Fiscal Year 2025 has been revised down significantly, with estimated revenue and Non-GAAP EPS both decreasing from prior estimates, suggesting weakening demand and potential over-optimism previously held. Additionally, external factors such as currency fluctuations may further hinder HDD demand, contributing to an uncertain financial outlook for the company.