Seagate shares hit $787 as Jim Cramer advises trimming gains ahead of earnings
The stock has surged 441% over the past year, ranking fourth among S&P 500 performers year-to-date.
Jim Cramer has advised investors to consider trimming their positions in Seagate Technology (STX) following a historic surge in the company’s share price. The recommendation, issued on July 17, 2026, comes as the data storage provider closes in on significant earnings results later in the month. Cramer characterised the move as a strategy for portfolio rebalancing and profit-taking rather than a sell call, highlighting the need for discipline after an extraordinary run in the stock.
Seagate shares closed at $787.66 on July 17, marking a 5.66% gain for the session. The stock has climbed 186.72% year-to-date and 441.28% over the past 12 months, placing it fourth in year-to-date performance among S&P 500 constituents, according to Slickcharts. It trails only Sandisk, Dell, and Micron in the index’s top performers. Over a three-year period, the stock has returned 1,285.43%.
The rally is underpinned by Seagate’s role as a key supplier in artificial intelligence infrastructure. Demand for high-capacity hard disk drives has accelerated as hyperscalers seek cost-efficient storage for large language models. Seagate’s heat-assisted magnetic recording (HAMR) technology has been central to this growth, allowing the company to differentiate itself from commoditised hardware makers. Earlier in 2026, the company’s Mozaic 3 platform achieved full qualification across all planned cloud service providers, while its Mozaic 4 platform secured two qualified customers.
Financial results have validated the structural shift in the business. For the third quarter of fiscal 2026, Seagate reported revenue of $3.11 billion and retired $641 million in debt. Chief Executive Dave Mosley described the quarter as delivering record margin performance and signalled the start of a new era of structural growth. Management has guided fiscal fourth-quarter revenue to $3.45 billion, with non-GAAP diluted earnings per share expected at $5.00.
Analysts at Zacks are forecasting earnings of $5.10 per share for the July 28 report, representing a 97% increase year-on-year. The upcoming print will be scrutinised for forward guidance on hyperscaler demand and potential new supply agreements. Cramer noted that while the structural thesis remains intact, investors with significant gains may wish to lock in profits before an event that could result in a "sell the news" reaction if expectations are not exceeded.
