Seagate Technology Holdings PLC (STX) experienced a significant surge of 7.80% in the after-hours trading session on Tuesday, following the release of its fiscal second-quarter financial results.

The sharp upward movement was driven by the company reporting better-than-expected earnings and revenue for the quarter, alongside issuing strong guidance for the current period. Seagate posted adjusted earnings per share of $3.11, surpassing the analyst consensus estimate of $2.81, while revenue reached $2.83 billion, beating expectations of $2.73 billion. This represents a 55% year-over-year increase in net income.

Furthermore, the company provided an optimistic outlook for the fiscal third quarter, forecasting revenue of approximately $2.90 billion and adjusted EPS of around $3.40, both well above market estimates. Management attributed the strong performance to durable demand in the data center sector, amplified by artificial intelligence applications that are driving the need for high-performance, cost-efficient storage solutions at scale.