Seagate vs Western Digital
Seagate and Western Digital are examined side by side, this page compares their business models, financial performance, and market context in a neutral, accessible way. Educational content, not financial advice.
Seagate and Western Digital are examined side by side, this page compares their business models, financial performance, and market context in a neutral, accessible way. Educational content, not financ...
Why It's Moving
STX Analysts Clash with Downside Warnings Amid Bullish Earnings Beats and AI Surge
- Q2 earnings crushed estimates with $3.11 EPS versus $2.84 expected and $2.83B revenue up 21.5% year-over-year, fueled by exploding AI cloud storage needs.
- Cantor Fitzgerald hiked its price target to $650 from $500 on February 4 while maintaining Overweight, and Citigroup lifted to $480, betting big on Seagate's AI momentum.
- Insider selling spiked with CEO offloading 20,000 shares for $8.6M amid broader sales of 137,976 shares in 90 days, raising eyebrows despite steady $0.74 quarterly dividend.
WDC Stock Warning: Why Analysts See -34% Downside Risk
- CEO Irving Tan sold 20,000 shares on Feb. 2 for $5.11 million, triggering a 3.4% stock drop and sparking concerns over executive confidence despite the company's strong fundamentals.
- Analyst targets diverge sharply, with the average at $279.70 implying modest downside from $290 closes, but lows at $92.92 signaling up to 34% risk from potential overvaluation or sector pullbacks.
- Q2 results shone with 25% revenue growth to $3.02B, record 46.1% HDD margins, and a $4B buyback plus dividend hike on Feb. 2—yet put/call ratio of 1.11 points to bearish options sentiment.
STX Analysts Clash with Downside Warnings Amid Bullish Earnings Beats and AI Surge
- Q2 earnings crushed estimates with $3.11 EPS versus $2.84 expected and $2.83B revenue up 21.5% year-over-year, fueled by exploding AI cloud storage needs.
- Cantor Fitzgerald hiked its price target to $650 from $500 on February 4 while maintaining Overweight, and Citigroup lifted to $480, betting big on Seagate's AI momentum.
- Insider selling spiked with CEO offloading 20,000 shares for $8.6M amid broader sales of 137,976 shares in 90 days, raising eyebrows despite steady $0.74 quarterly dividend.
WDC Stock Warning: Why Analysts See -34% Downside Risk
- CEO Irving Tan sold 20,000 shares on Feb. 2 for $5.11 million, triggering a 3.4% stock drop and sparking concerns over executive confidence despite the company's strong fundamentals.
- Analyst targets diverge sharply, with the average at $279.70 implying modest downside from $290 closes, but lows at $92.92 signaling up to 34% risk from potential overvaluation or sector pullbacks.
- Q2 results shone with 25% revenue growth to $3.02B, record 46.1% HDD margins, and a $4B buyback plus dividend hike on Feb. 2—yet put/call ratio of 1.11 points to bearish options sentiment.
Investment Analysis
Seagate
STX
Pros
- Seagate demonstrates a higher risk-adjusted performance with a Sharpe ratio of 1.02 compared to Western Digital's 0.46, indicating potentially better return per unit of risk.
- Strong product pipeline and transition towards higher-margin, high-capacity nearline storage products support prospects for improved profitability and steady dividends.
- Solid cash flow generation supports ongoing innovation and growth despite competitive pressures and macroeconomic challenges.
Considerations
- Heavily leveraged with $5 billion in debt against just $891 million in cash, increasing financial risk and pressuring the company’s ability to sustain dividends and growth.
- Faces increasing competition from Western Digital and storage subsystem providers, as well as supply chain issues that threaten market position execution.
- Higher stock volatility at 24.70% compared to Western Digital’s 20.77% indicates greater price fluctuations and investment risk.
Pros
- Western Digital trades at a lower forward P/E and benefits from stronger earnings estimate revisions with expanding gross margins driven by high-capacity nearline product adoption.
- Substantial debt reduction of $684 million in fiscal 2025 alongside maintained shareholder returns demonstrates balanced capital allocation and financial discipline.
- Lower stock volatility at 20.77% suggests comparatively reduced price risk and more stable market performance.
Considerations
- Gross margin expansion and profitability are reliant on continued successful pricing initiatives and demand for specific product lines, which could be pressured by market conditions.
- Moderate correlation with Seagate stock at 0.53 limits diversification benefits when held together in a portfolio.
- Despite improvements, Western Digital remains subject to cyclicality in the data storage industry and potential regulatory or supply chain risks.
Related Market Insights
No insights available in this category
Related Market Insights
No insights available in this category
Seagate (STX) Next Earnings Date
Seagate Technology (STX) reported its Q2 2026 earnings on January 27, 2026, covering the fiscal quarter ended December 2025. The next earnings release, for Q3 2026, is expected around late April 2026, based on historical patterns typically 4-5 weeks after quarter-end. Investors should monitor official announcements for the precise date.
Western Digital (WDC) Next Earnings Date
Western Digital's next earnings date is estimated for late April 2026, following the recent release of Q2 2026 results on January 29, 2026. This report will cover the fiscal Q3 2026 period, aligning with the company's quarterly pattern of late-month announcements before market open. Specific dates vary slightly across estimates, ranging from April 22 to April 30, 2026, but no official confirmation has been issued yet.
Seagate (STX) Next Earnings Date
Seagate Technology (STX) reported its Q2 2026 earnings on January 27, 2026, covering the fiscal quarter ended December 2025. The next earnings release, for Q3 2026, is expected around late April 2026, based on historical patterns typically 4-5 weeks after quarter-end. Investors should monitor official announcements for the precise date.
Western Digital (WDC) Next Earnings Date
Western Digital's next earnings date is estimated for late April 2026, following the recent release of Q2 2026 results on January 29, 2026. This report will cover the fiscal Q3 2026 period, aligning with the company's quarterly pattern of late-month announcements before market open. Specific dates vary slightly across estimates, ranging from April 22 to April 30, 2026, but no official confirmation has been issued yet.
Which Baskets Do They Appear In?
No baskets available in this category
Which Baskets Do They Appear In?
No baskets available in this category
Buy STX or WDC in Nemo
Zero Commission
Trade stocks, ETFs, and more with zero commission. Keep more of your returns.
Trusted & Regulated
Part of Exinity Group 2015, serving over a million customers globally.
6% Interest on Cash
Earn 6% AER on uninvested cash with daily interest payments.
Discover More Comparisons
Seagate vs Zscaler
Seagate vs Zscaler: A neutral comparison
Seagate vs Electronic Arts
Seagate Technology Public Ltd. Co. vs Electronic Arts Inc.
Seagate vs NXP
Seagate vs NXP: Stock comparison