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
Seagate Stock Surges on Analyst Upgrades Ahead of Pivotal Earnings Report
- Wedbush boosted its price target from $290 to $380, with Rosenblatt hitting $370 and Cantor Fitzgerald at $400, signaling confidence in AI-fueled memory pricing and margins.
- Shares hit an intraday high of $369.84 amid broad analyst optimism, underscoring Seagate's role as an overlooked AI beneficiary with robust NAND and DRAM exposure.
- Anticipation builds for January 27 earnings, poised to showcase progress in AI hardware demand and potential revenue acceleration not yet fully baked into models.
Western Digital gears up for Q2 earnings amid analyst upgrades and bullish HDD demand signals.
- Morgan Stanley lifted its target to $260 from $228, forecasting margin strength and EPS upside for Western Digital and peers.
- Rosenblatt hiked to $270 from $165 on Buy, driven by rising HDD prices, build-to-order visibility, and HAMR tech potential.
- UBS upped to $230 from $145, citing strong gross margins and fully booked capacity through 2027 despite near-term constraints.
Seagate Stock Surges on Analyst Upgrades Ahead of Pivotal Earnings Report
- Wedbush boosted its price target from $290 to $380, with Rosenblatt hitting $370 and Cantor Fitzgerald at $400, signaling confidence in AI-fueled memory pricing and margins.
- Shares hit an intraday high of $369.84 amid broad analyst optimism, underscoring Seagate's role as an overlooked AI beneficiary with robust NAND and DRAM exposure.
- Anticipation builds for January 27 earnings, poised to showcase progress in AI hardware demand and potential revenue acceleration not yet fully baked into models.
Western Digital gears up for Q2 earnings amid analyst upgrades and bullish HDD demand signals.
- Morgan Stanley lifted its target to $260 from $228, forecasting margin strength and EPS upside for Western Digital and peers.
- Rosenblatt hiked to $270 from $165 on Buy, driven by rising HDD prices, build-to-order visibility, and HAMR tech potential.
- UBS upped to $230 from $145, citing strong gross margins and fully booked capacity through 2027 despite near-term constraints.
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
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Related Market Insights
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Seagate (STX) Next Earnings Date
Seagate Technology (STX) is scheduled to report its fiscal second quarter 2026 earnings on Tuesday, January 27, 2026, after market close, with a conference call at 5:00 PM ET. This release will cover the quarter ending December 2025. Investors should note the consensus among major sources points to this date, though minor discrepancies exist in preliminary estimates.
Western Digital (WDC) Next Earnings Date
Western Digital's next earnings date is estimated for Thursday, January 29, 2026, after market close. This report will cover the fiscal second quarter of 2026 (Q2 2026). The date follows the company's historical pattern, as the prior Q1 2026 earnings were released on October 30, 2025.
Seagate (STX) Next Earnings Date
Seagate Technology (STX) is scheduled to report its fiscal second quarter 2026 earnings on Tuesday, January 27, 2026, after market close, with a conference call at 5:00 PM ET. This release will cover the quarter ending December 2025. Investors should note the consensus among major sources points to this date, though minor discrepancies exist in preliminary estimates.
Western Digital (WDC) Next Earnings Date
Western Digital's next earnings date is estimated for Thursday, January 29, 2026, after market close. This report will cover the fiscal second quarter of 2026 (Q2 2026). The date follows the company's historical pattern, as the prior Q1 2026 earnings were released on October 30, 2025.
Which Baskets Do They Appear In?
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Which Baskets Do They Appear In?
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