Seagate Technology (STX) is poised to deliver "strong" fiscal Q2 financial results, driven by data center revenue and seasonal improvement in its consumer and video and image analytics segments, BofA Securities said in a note Tuesday.

The investment firm estimates fiscal Q2 earnings per share of $2.85 and revenue of $2.78 billion for the company, above consensus and in the upper half of guidance.

BofA Securities also said it expects Seagate's gross margins to improve sequentially in each quarter of fiscal 2026. The company could also outperform its long-term incremental margins target of 50%, BofA added.

Seagate Technology is set to release its fiscal Q2 results on Jan. 27.

BofA Securities raised its price target on Seagate Technology to $400 from $320, while maintaining its buy rating.

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