Seagate Technology shares fall despite earnings beat

Seagate Technology stock fell 5.7% in morning trading Wednesday to reach $629.66 after the company reported fiscal first-quarter 2027 earnings that exceeded analyst expectations.

The data storage company posted non-GAAP earnings per share of $7.68, surpassing analyst expectations of $7.39. Revenue reached $4.23 billion, above the $4.13 billion consensus estimate and marking a 61% increase from the prior year.

For the second quarter, Seagate issued guidance calling for $4.8 billion in revenue and non-GAAP earnings per share of $9.20 at the midpoints, exceeding previous Wall Street estimates.

The stock had gained 4.6% on Tuesday ahead of the earnings release. Morgan Stanley reduced its price target on Seagate Wednesday while maintaining an Overweight rating, pointing to slower-than-expected growth in hard drive shipment capacity and slightly lower profit forecasts. Susquehanna also lowered its price target following the earnings report.

A recent insider sale by an executive vice president contributed additional pressure on the stock.

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