Zacks downgrades Seagate Technology stock to Hold

Published on 10/05/2026 at 11:25 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Revenue hit USD 3.63 billion in fiscal fourth quarter 2026, up 48.50 percent. Seagate Technology stock costs EUR 772.00 on October 5, 2026 versus EUR 753.00.

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Seagate Technology stock (ISIN IE00BKVD2N49) was trading at EUR 772.00 at Lang & Schwarz on October 5, 2026 at 11:15 a.m. CEST, up 2.52 percent from the prior close of EUR 753.00. On September 30, 2026, MarketBeat reported that Zacks Research downgraded Seagate Technology from strong buy to hold. The rating change puts valuation and execution against the company's data-center growth at the center of the debate.

Rating shifts after strong results

The downgrade followed quarterly figures that remained far above the year-earlier base. According to MarketBeat, Seagate reported USD 5.71 in quarterly earnings per share against a USD 5.10 consensus estimate, while revenue reached USD 3.63 billion versus USD 3.50 billion expected. Revenue increased 48.50 percent from the comparable period, giving investors a concrete measure of the operating rebound.

The latest reported quarter also showed operating leverage. Structured financial data put operating profit at USD 1.56 billion and the operating margin at 43.00 percent for the fiscal fourth quarter ended July 3, 2026, compared with USD 998.00 million and 32.00 percent in the fiscal third quarter.

Data-center demand drives the thesis

StockTitan summarized Seagate's fiscal 2026 filing as showing USD 12.20 billion in annual revenue, up 34.00 percent, and fiscal first-quarter 2027 revenue guidance of USD 4.10 billion plus or minus USD 100.00 million. The same filing summary put non-GAAP diluted earnings per share guidance at USD 7.30 plus or minus USD 0.20.

The company's exposure to mass-capacity storage makes nearline hard-drive demand the key operating variable. That growth profile supports the bullish consensus, but the Zacks downgrade shows that expectations now require continued delivery against elevated estimates.

Stock remains highly volatile

Seagate had a market capitalization of USD 190.4 billion as of October 2, 2026, while its 52-week range was USD 209.00 to USD 1,145.00. The Nasdaq-listed stock closed at USD 848.98 on October 2, 2026, according to Teleborsa.

For investors, the central tension is clear: fiscal fourth-quarter revenue and margin expanded sharply, while the latest analyst action signals that the valuation already reflects a demanding growth path.