Seagate Technology Holdings (STX) Company Report

Seagate sees mid-20s% exabyte CAGR in nearline HDD demand over the next 3–5 years, maintaining a flat to slightly up average price per terabyte for CY 2026 under its consistent pricing strategy.
Factories are fully utilized, and Seagate has no plans to add unit capacity, instead leveraging higher-capacity product mix to meet all production sold to date.
HAMR drive adoption exceeded 20% of nearline exabyte shipments, with yields improving (yet still below PMR), and a Mozaic 4+ ramp slated for 2H 2026 to drive further cost-per-TB declines.
Gross margins have improved for 11 consecutive quarters; Seagate targets returning >75% of FCF to shareholders, has reduced debt below $4 billion, and plans continued dividends and buybacks.
AI and video workloads are driving data retention growth in the cloud, with minimal nearline/NAND overlap; SMR usage continues to rise among hyperscale customers.

2 days ago

Transcript

Seagate outlines mid-20s exabyte growth and stable pricing strategy

STX

Guidance Update

Dividends

Share Buyback

Nearline exabyte demand expected to grow at a mid-20% CAGR over the next 3–5 years, aligning with competitor forecasts.
Maintains a flat to slight year-on-year increase in average price per terabyte, driven by consistent contract renegotiations and product mix effects.
HAMR technology ramp (Mozaic 3+ in production and Mozaic 4+ qualifying) will deliver high-teens areal density gains and lower cost per terabyte, underpinning future cost declines.
Plans for continued gross margin expansion through pricing, mix shifts to higher-capacity drives, and HAMR cost improvements, with another strong quarterly margin guide forthcoming.
Commits to returning >75% of free cash flow to shareholders (historically 100%), while reducing debt below $4 billion after recent convertible transactions.

2 days ago

Transcript

Seagate forecasts mid-20% exabyte CAGR, stable pricing, and HAMR ramp at Bernstein tech forum

STX

Guidance Update

Average price per terabyte expected flat to slightly up in 2026, with consistent modest increases on legacy products offset by mix shifts toward higher-capacity drives.
Targets mid-20% nearline exabyte CAGR over the next 3–5 years, driven by mix changes toward higher-capacity drives amid demand exceeding supply.
Second-gen HAMR (Mozaic 4+) qualification underway, with volume ramp slated for the second half of 2026; yield gains and areal-density improvements should lower cost per TB below current PMR levels.
11 consecutive quarters of pricing, cost and gross-margin improvement, maintaining a >75% free-cash-flow return policy while reducing debt below $4 billion and potentially returning full FCF to shareholders.

2 days ago

Transcript

Seagate closes exchanges of $600 million exchangeable senior notes

STX

Debt Issuance

Seagate completed exchanges of $600 million principal amount of its 3.50% Exchangeable Senior Notes due 2028, issuing approximately $599.2 million in cash and 5.95 million ordinary shares to noteholders.
The exchanged notes have been retired, leaving approximately $400 million in aggregate principal amount of notes outstanding on unchanged terms.
Shares were issued in private placements under the Securities Act’s Section 4(a)(2) exemption.

Feb 19, 2026, 10:02 PM

Press Release

Seagate reports Q2 2026 results

STX

Earnings

Guidance Update

Strong Q2 2026 financial performance: Revenue of $2.83 billion (+7% sequentially, +22% year-over-year); non-GAAP gross margin of 42.2%; non-GAAP operating margin of 31.9%; and non-GAAP EPS of $3.11.
Record exabyte shipments: 190 EB shipped (+26% year-over-year), with 165 EB to data center customers (+31% year-over-year) and average cloud nearline drive capacity of ~26 TB.
Robust cash flow and balance sheet actions: $607 million free cash flow generated (+42% quarter-over-quarter), $500 million of gross debt retired, net leverage at 1.1×, and $2.3 billion of total liquidity at quarter end.
March quarter guidance: Revenue of $2.9 billion ± $100 million (midpoint +34% year-over-year), non-GAAP EPS of $3.40 ± $0.20, and expected non-GAAP operating margin in the mid-30s%.

Jan 27, 2026, 10:00 PM

Transcript

Seagate posts Q2 2026 results

STX

Earnings

Guidance Update

Seagate reported Q2 revenue of $2.83 billion, up 7% sequentially and 22% year-over-year; non-GAAP gross margin was 42.2%, operating margin 31.9%, and EPS $3.11.
The company shipped 190 exabytes in the quarter (+26% YoY), with 165 exabytes to the data center market (87% of volume, +31% YoY).
Q2 free cash flow was $607 million, the company returned $154 million to shareholders and retired approximately $500 million of exchangeable notes, reducing gross debt to $4.5 billion and net leverage to 1.1×.
March-quarter guidance calls for revenue of $2.9 billion ± $100 million (mid-34% YoY growth) and non-GAAP EPS of $3.40 ± $0.20.

Jan 27, 2026, 10:00 PM

Transcript

Seagate reports Q2 2026 results

STX

Earnings

Guidance Update

Revenue of $2.83 B (+7% QoQ, +22% YoY), non-GAAP gross margin of 42.2% (+210 bps QoQ) and EPS of $3.11 in the December quarter
190 EB shipped (+26% YoY) with 87% volume in data center and average cloud nearline capacity of ~26 TB per drive
HAMR shipments exceeded 1.5 M units in Q4, including 3 TB/disk Mozaic products to first CSP, with Mozaic 4 TB/disk qualifications on track
$607 M free cash flow, $500 M debt retired, and net leverage improved to 1.1×, with $1 B cash and $2.3 B total liquidity
Q3 revenue guidance of $2.9 B ± $100 M (midpoint +34% YoY) and EPS of $3.40 ± $0.20

Jan 27, 2026, 10:00 PM

Transcript

Seagate Technology reports Q2 FY26 results

STX

Earnings

Guidance Update

Revenue grew 22% YoY to $2.83 billion, surpassing the high end of guidance
Non-GAAP gross margin expanded to 42.2%, up ~670 bps YoY, and operating margin reached 31.9%
Data Center revenue rose 28% YoY to $2.2 billion on strong cloud demand
Generated record free cash flow of $607 million, up 42% sequentially
Q3 FY26 guidance: revenue of $2.90 billion ± $0.10 billion and non-GAAP EPS of $3.40 ± $0.20

Jan 27, 2026, 10:00 PM

Presentation

Seagate Technology reports Q2 2026 results

STX

Earnings

Dividends

Guidance Update

Revenue of $2.83 billion; GAAP gross margin 41.6% (non-GAAP 42.2%); GAAP EPS $2.60 (non-GAAP $3.11)
Cash flow from operations of $723 million and free cash flow $607 million; retired $500 million of Exchangeable Senior Notes and declared a quarterly dividend of $0.74 per share
Fiscal Q3 2026 guidance: revenue of $2.90 billion ± $100 million and non-GAAP EPS of $3.40 ± $0.20

Jan 27, 2026, 9:08 PM

8-K

Seagate Technology reports fiscal Q2 2026 results

STX

Earnings

Guidance Update

Dividends

Seagate posted $2.83 billion in revenue, 41.6% GAAP gross margin (42.2% non-GAAP), and GAAP diluted EPS of $2.60 (non-GAAP $3.11) for Q2 2026.
Generated $723 million in operating cash flow and $607 million in free cash flow; retired $500 million of 2028 Exchangeable Senior Notes and held $1.0 billion in cash and equivalents at quarter end.
Declared a $0.74 per share quarterly cash dividend payable April 8, 2026.
Provided Q3 2026 guidance of $2.90 billion revenue (± $100 million) and non-GAAP diluted EPS of $3.40 (± $0.20).

Jan 27, 2026, 9:05 PM

Press Release

Earnings Transcripts

Quarterly earnings call transcripts for Seagate Technology Holdings.

Q2 2026

Jan 27, 2026

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Q4 2025

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Seagate Technology Holdings (STX)

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