Eddy Orabi's questions to Seagate Technology Holdings PLC (STX) leadership • Q4 2025
Question
Eddy Orabi, on behalf of Krish Sankar at TD Cowen, asked why incremental gross margins would not exceed the 50% level outlined at the Analyst Day, considering the HAMR ramp is still in its early stages.
Answer
CFO Gianluca Romano clarified that the immediate goal is to reach 40% gross margin at $2.6 billion in revenue, and the company is trending well in that direction. He stated that the 50% incremental margin model applies after that milestone is achieved and that the plan presented at the Analyst Day remains unchanged and is being executed well.