Loop Capital analyst Ananda Baruah kept his Buy rating and $70 price target on Seagate, saying that despite the 17% retreat in the stock price over the last 9 weeks, his analysis of cloud capacity demand, sales mix, and NAND pricing trends suggest that it is on track with its Q1 guidance of 31% gross margin and implied EPS of $1.60-$1.65. The analyst contends that the investor perception of the company reaching peak margins in the last quarter is "untrue", with gross margins likely reaching a level above 34%. Baruah also believes that while some hyperscale projects "may be pausing to see if tariffs and NAND average selling price declines impact Cloud drive pricing", any pause in buying should not be material to Seagate's guidance.

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Sees Q4 revenue $1.7B-$2.0B, consensus $1.85B

Reports Q3 revenue $1.66B, consensus $1.68B. "Seagate's March quarter revenue grew 6% and non-GAAP EPS more than doubled over the December quarter as we benefit from improving cloud demand, our strong operating discipline and price execution. This combination sets the foundation for a return to target margin performance as the markets recover," said Dave Mosley, CEO. "This constructive demand backdrop is well-timed as we prepare to ramp our Mozaic products, anchored by industry-leading HAMR technology. HAMR-based products offer compelling economic value for our customers and position Seagate to drive further financial performance gains, as well as capitalize on favorable long-term demand for mass capacity storage."