Seagate’s Order Books Are Full Through 2027 as AI Storage Demand Hits Fever Pitch

Seagate's nearline storage capacity booked through 2027, fueling 44% revenue surge and 160% stock gain as AI demand boosts pricing power.

The insatiable appetite of artificial intelligence for data storage has created a seller’s market, and Seagate Technology is the one calling the shots. With production capacity for its nearline storage solutions already fully booked until 2027, the company is enjoying pricing power that has sent its financials into overdrive.

The numbers from the third fiscal quarter tell a striking story. Revenue surged 44% to $3.11 billion, while gross margin exploded to 47% from just 36% a year earlier. Adjusted earnings per share came in at $4.10, beating analyst expectations by a full 60 cents. The operating strength translated directly into cash generation, with free cash flow hitting $953 million.

Fitch took note of the improving balance sheet, upgrading Seagate’s credit rating in recognition of its debt reduction efforts.

Investors have been piling in. The stock jumped 12% on the day to a record €644, though with a relative strength index of 80, technical indicators suggest the shares are now in overbought territory. The rally has been nothing short of spectacular — the stock has more than doubled since the start of the year, gaining over 160%.

The analyst community wasted no time updating its models. Twenty-two experts raised their price targets, pushing the average forecast up 45% to $770. Major institutions including JPMorgan and Bank of America have joined the upgrade parade, and a handful of analysts see a path to $1,000. For fiscal 2027, the consensus now calls for revenue of $16 billion — a 47% jump from the prior year — with earnings per share approaching $25.

Seagate’s new HAMR technology is the engine behind this transformation. The advanced storage architecture allows the company to command premium pricing from hyperscale cloud providers, who are scrambling to build out AI infrastructure. With nearline storage capacity locked in years ahead, the company has effectively turned its order book into a strategic asset.

Looking ahead, management sees no letup. For the current quarter, revenue is forecast at $3.45 billion, with earnings per share expected to land between $4.80 and $5.20. The annual growth target has been lifted to at least 20%, reflecting confidence that the AI-driven demand cycle still has plenty of runway.

Institutional ownership remains elevated at over 92%, underscoring the conviction among large investors that Seagate’s moment has arrived.