Seagate Technology forecast fourth-quarter revenue and profit above Wall Street expectations on Tuesday. The company is betting on strong demand for its data-storage hardware as enterprises ramp up adoption of artificial intelligence.
Shares of the company were up around 10 per cent in extended trading. Enterprises rushing to incorporate AI into their businesses have invested in storage to handle the vast amount of data required to create and run the latest models. Seagate's shares have doubled so far this year after more than tripling in 2025, as the AI-led boom in demand and a surge in memory chip prices kindled investor enthusiasm in the storage market.
Seagate is battling intense competition from companies such as Western Digital as they rush to ramp up production and build capacity to secure new contracts with cloud providers.
The company forecast fourth-quarter revenue of $3.45 billion, plus or minus $100 million, compared with estimates of $3.16 billion. The company expects quarterly adjusted earnings per share of $5, plus or minus 20 cents, while analysts expect $3.97. Seagate reported third-quarter revenue of $3.11 billion, beating estimates. It reported earnings per share of $3.27, compared with $1.57 per share a year earlier.