The Dublin-based company reported fourth quarter earnings of $2 per share on revenue of $3.01 billion. Analysts were expecting earnings of $1.87 per share on revenue of $2.97 billion.
"Seagate’s industry-leading product portfolio for mass data infrastructure places the company in an outstanding position to capitalize on robust demand trends, generate solid and increasing free cash flow and achieve our long-term financial objectives," said CEO Dave Mosley.
Despite the top- and bottom-line beats, shares of the company dropped 2.1% to $83.65 at last check Wednesday afternoon.
Seagate's price target was recently raised to $95 from $88 by analysts at Mizuho last week who maintained the stock's neutral rating.
The firm was bearish on the chip sector despite the increased price target, urging investors to "be more defense and selective" with semiconductor companies amid the global chip shortage that is stemming from supply-chain issues.
"Demand for data is rapidly accelerating in the cloud and at the edge, driving secular growth for mass capacity data storage," Mosley said of his company's most recent quarter.
It was not clear why the stock is dropping despite the strong results from the most recent quarter.