For the quarter ended Jan. 3 the Dublin company reported net income of $318 million, or $1.20 a share, compared with $384 million, or $1.34, in the year-earlier quarter.
The latest adjusted profit was $1.35 a share, beating the consensus $1.31 estimate of analysts surveyed by FactSet.
Revenue totaled $2.7 billion, down from $2.99 billion, and missing Wall Street's call for $2.72 billion.
Looking ahead, the company said it expected third-quarter earnings of $1.35 a share, ahead of Wall Street's forecast of $1.27. Seagate sees revenue of $2.7 billion, compared with the consensus of $2.59 billion.
"In the December quarter, Seagate expanded non-GAAP operating margin by nearly [3 percentage points] and delivered non-GAAP earnings-per-share growth of more than 30% quarter-over-quarter while driving strong operational cash flow in an improving demand environment,” CEO Dave Mosley said in a statement.
Mosley added that "we are poised to benefit from ongoing demand for mass-capacity storage, which we expect to offset typical seasonal declines in the legacy markets in the first half of the calendar year.”
On Monday, Stifel Analyst Patrick Ho upgraded his rating on the company to buy from hold and boosted his price target to $70 a share from $62.
He told investors the company's recent share-price weakness has created an opportunity to get more positive from both a fundamental and valuation perspective.
At last check Seagate shares were off 1.1%. They'd closed the regular Tuesday session up 1.8% at $58.97.