Seagate Technology (NASDAQ: STX) saw its stock price soar, rising by more than 9% recently, following the company’s statement that ongoing tariffs will not pose a significant challenge to its operations. The rise in stock comes on the back of Seagate’s strong financial performance, which exceeded Wall Street expectations for the third quarter of fiscal 2024.

In its latest earnings report, Seagate announced a robust 49.1% year-over-year increase in revenue, reaching $2.17 billion. This result outperformed analysts’ forecasts, with adjusted earnings per share (EPS) of $1.58, surpassing the consensus estimate of $1.46. The company also issued an optimistic forecast for the upcoming quarter, projecting revenue of around $2.3 billion and an adjusted EPS of $1.85, both higher than analysts’ predictions.

Despite a $300 million settlement with the U.S. Department of Commerce regarding export violations linked to Huawei, Seagate emphasized that the resolution would not disrupt its long-term strategy. The company has been focusing on its technology roadmap, particularly advancements in its storage solutions, and remains confident in its ability to maintain strong performance moving forward.

The market has responded positively to Seagate’s performance and future prospects. Analysts have raised their price targets for the company, with Morgan Stanley upgrading Seagate to “Overweight” and increasing its target price from $73 to $115. Meanwhile, Evercore ISI has raised its price target to $135, citing confidence in Seagate’s competitive edge in the data storage sector, especially with its leadership in heat-assisted magnetic recording (HAMR) technology.

Investors are also pleased by Seagate’s commitment to shareholder returns, as the company recently boosted its quarterly dividend to $0.72 per share, up from $0.70.

With its strong financial outlook, strategic focus on innovation, and ability to navigate regulatory hurdles, Seagate Technology continues to position itself as a leader in the data storage industry.