Seagate Technology Holdings plc (STX) climbs on earnings misses
Key Takeaway
Seagate Technology Holdings plc (STX) missed on EPS but beat on revenue, posting EPS of 3.38 versus 3.50 expected and revenue of $3.11B versus $2.96B expected, with the stock climbing 12.23% in after-hours trading to $668.76.
Key Numbers
EPS: 3.38 vs 3.50 estimate, a miss.
Revenue: $3.11B vs $2.96B estimate, a beat.
Stock reaction: STX rose 12.23% in after-hours trading to $668.76 from the prior close of $595.86.
After-hours move came with volume of 4,826,450 versus average volume of 3,887,349.
This breaks a streak of four straight EPS beats, after STX topped estimates in January, October, July, and April 2025.
Revenue strength is carrying more weight than the EPS miss
The market reaction says the revenue beat mattered more than the EPS miss. A 12.23% after-hours jump is a loud response, especially after STX closed at $595.86 and traded within a regular-session range of $553.20 to $592.70. In plain English, investors saw enough top-line strength to look past the earnings shortfall.
That matters because STX had beaten EPS estimates in each of the prior four quarters. This quarter breaks that streak, but the revenue result still landed ahead of expectations. For a hardware name, that can matter more than a narrow EPS miss if investors believe demand and pricing are holding up. The stock's move says the market is leaning that way, at least in the first reaction.
