Seagate (STX) Reports Impressive June Quarter With Nearline Drive Demand Driving 36% Revenue Growth

Seagate Technology Holdings plc (NASDAQ:STX) ranks among the best computer hardware stocks to invest in. Benchmark kept its Buy rating on Seagate Technology Holdings plc (NASDAQ:STX)’s shares while increasing its price target from $128 to $165 on July 30. The price target raise comes after Seagate’s impressive June quarter results, which surpassed forecasts owing to the increasing demand for cloud computing around the world. Moreover, the company produced record Nearline drive shipments and gross margins during the quarter, with revenue growth of 36.29%.

Seagate (STX) Reports Impressive June Quarter With Nearline Drive Demand Driving 36% Revenue Growth

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Seagate’s Nearline drives are fully booked through mid-2026, according to Benchmark, proving the company’s high-capacity business storage solutions are in solid demand.

That said, Seagate Technology Holdings plc (NASDAQ:STX) reported comparatively flat results for the September quarter in spite of this positive outlook. In addition, the company’s corporate tax rate is expected to rise significantly to mid-teen percentages beginning in fiscal year 2026 as a result of the global minimum tax’s Pillar Two framework.

Originally founded as Shugart Technology in 1978, Seagate Technology Holdings plc (NASDAQ:STX) is an American data storage company that formally started operations in 1979. The company offers a full portfolio of storage devices, systems, and services from edge to cloud.

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Disclosure: None. This article is originally published at Insider Monkey.