Seagate beats Q1 estimates, guides Q2 above consensus; stock falls on cyclical concerns

Seagate Technology reported fiscal Q1 revenue of $4.2 billion and adjusted EPS of $7.68, both above estimates, with adjusted gross margin of 57.8% and record free cash flow of $1.5 billion. Q2 guidance of $4.8 billion revenue and $9.20 adjusted EPS also topped consensus. Shares fell about 5.7% after hours despite the beat, as investors focused on cyclical risks, higher external component costs, and a pause in capacity shipment growth during the Mozaic 4 transition. Management expects a shipment step-up in the December quarter and said most nearline capacity is allocated through calendar 2028.