Seagate Technology (STX) is trading cautiously ahead of its Q1 FY2026 earnings report, due January 27, as the company's guidance of $2.50 billion in revenue and $2.30 EPS falls significantly below analyst expectations of $2.75 billion and $2.84 EPS.
- The stock is trading at $344.85 in pre-market on January 26, reflecting a slight drop of 0.36% from its previous close.
- The recent 123.6% rally over the last 120 days has priced in significant optimism, raising concerns about a potential 'sell the news' reaction if the guidance disappoints amid issues with the AI-driven HAMR Mozaic platform ramp.
- Despite recent target hikes, the stock's closing price of $346.10 is considered overvalued by approximately 16.5% compared to the fair value estimate of $297.