Seagate Technology reported a 34% revenue increase and $3.1 billion free cash flow in fiscal 2026, driven by high demand for large-capacity hard drives from hyperscalers supporting AI infrastructure. The company beat earnings estimates for four consecutive quarters and expects continued growth, with revenue guidance of $4.1 billion and EPS of $7.30 for fiscal Q1 2027. Analysts see a 16.7% upside to a $927 price target, citing strong cloud provider commitments and a multi-year growth floor of 20%. Risks include reliance on hyperscaler spending and market volatility, but Seagate's upgraded credit rating and solid balance sheet support confidence. The stock remains a buy on pullbacks, with upside potential if AI infrastructure investment continues.
