Seagate beats EPS expectations as analysts lift 2027 forecasts but lower price target

Seagate's latest results and analyst revisions

Seagate Technology Holdings reported US$4.2 billion in revenue, roughly in line with analyst forecasts, after its latest first-quarter results. Statutory earnings per share were US$7.59, 6.5% above what analysts had expected.

The results prompted analysts to raise their forecasts for the company. Consensus estimates from 21 analysts now point to revenue of US$20.3 billion in 2027, a 47% improvement from the preceding 12 months. Statutory EPS is forecast to rise 107% to US$39.61.

Higher earnings estimates accompany a lower valuation target

Before Seagate's latest earnings report, analysts had expected 2027 revenue of US$19.1 billion and statutory EPS of US$34.96. The revisions therefore increased both the revenue and earnings forecasts.

At the same time, the consensus price target fell 5.4% to US$1,045 per share. The supplied analysis said this could indicate that analysts did not expect the forecast improvement in performance to last. Individual targets ranged from US$700 to US$1,588 per share, indicating substantial disagreement about the company's prospective valuation.

Forecast growth outpaces recent company performance

The 2027 forecast implies 68% annualized revenue growth through the end of 2027, compared with historical growth of 0.1% annually over the preceding five years. Similar companies with analyst coverage were forecast to generate average annual revenue growth of 9.6%.

Those figures are forecasts rather than realized results. They indicate that the post-earnings analyst consensus expects Seagate to grow substantially faster than both its own recent historical rate and the cited industry comparison, but they do not establish that the projected growth will occur.