Seagate Technology Holdings PLC (STX) shares surged 8% in after-hours trading on Tuesday, staging a sharp reversal from a steep regular-session selloff, after the data storage giant reported fiscal fourth-quarter results that handily beat Wall Street expectations and issued a bullish outlook for the current quarter.

The company posted adjusted earnings of $5.71 per share, soaring past the consensus estimate of $5.09. Revenue climbed 48.5% year-over-year to $3.63 billion, topping the $3.49 billion analysts had forecast. The standout performance was fueled by robust demand from cloud data center customers, as the rapid expansion of AI infrastructure continues to drive insatiable need for high-capacity hard disk drives. Seagate also reported a non-GAAP gross margin of 52.7% and record free cash flow of $1.1 billion for the quarter.

Looking ahead, Seagate delivered a forecast that far exceeded Street expectations. The company guided for fiscal first-quarter revenue of $4.1 billion, plus or minus $100 million, and adjusted earnings of $7.30 per share, plus or minus 20 cents—both well above consensus estimates of $3.75 billion and $5.80 per share, respectively. CEO Dave Mosley attributed the momentum to "robust cloud data center demand and disciplined execution," adding that the company sees "durable long-term demand for mass capacity storage" as AI accelerates data generation and its value.