Seagate Technology Holdings (STX) Company Report

Demand has exceeded supply for over two years, with Seagate focusing on increasing exabytes via higher-capacity HAMR drives rather than units.
The company is booked through 2026 and into 2027, yet HDDs remain downstream of other data-center constraints and are not currently a build-out bottleneck.
HAMR adoption is accelerating: five cloud providers qualified (plus two more in H1 2026), targeting 40% of exabytes from HAMR by June 2026 and 70% by June 2027.
Seagate has doubled gross margin in 10 quarters, driven primarily by mix shift to higher-capacity drives and consistent pricing.
Net debt reduced from $6 billion to $4.5 billion, with further convertible pay-downs and plans to increase share repurchases and dividends.

3 days ago

Transcript

Seagate outlines supply constraints and HAMR ramp at UBS 2025 Global Tech and AI Conference

STX

Share Buyback

Dividends

Seagate has faced over two years of supply-demand tightness and continues to prioritize exabytes over unit shipments without expanding production capacity.
The company expects 40% of its exabyte shipments to be HAMR-based by the end of fiscal 2026 and 70% by the end of fiscal 2027 as customer qualifications accelerate.
Over the past 10 quarters, Seagate has doubled its gross margin, driven mainly by mix shifts to higher-capacity drives and a consistent pricing strategy.
Seagate reduced net debt from $6 billion to $4.5 billion, has begun converting remaining convertibles, and plans to ramp up share buybacks following a recent dividend increase.

3 days ago

Transcript

Seagate details HDD supply constraint and HAMR deployment pace

STX

Product Launch

Share Buyback

Demand exceeds supply for over two years, yet Seagate is holding unit capacity steady and focusing on exabytes growth through higher-capacity drives and HAMR technology.
Bookings are secured through FY2026 with orders into 2027, and HDD is not the primary bottleneck in data-center builds—power and other components are more limiting.
Five cloud service providers are qualified for HAMR, with three more expected in the first half of CY26; targeting 40% of exabytes from HAMR by end FY2026 and 70% by end FY2027.
Gross margin has doubled over the past 10 quarters, driven by a favorable mix and consistent pricing; the second-generation HAMR will further lower cost per TB.
Capital return remains a priority: debt reduced to ≈ $4.5 billion, dividend hiked, and share buybacks set to accelerate in upcoming quarters.

3 days ago

Transcript

Seagate closes $500M exchangeable notes exchange

STX

Debt Issuance

On November 12, 2025, Seagate closed exchanges of $500 million principal amount of its 3.50% exchangeable senior notes due 2028 for approximately $503.4 million in cash and 4.3 million ordinary shares
The exchanged notes have been retired, leaving $1.0 billion principal amount outstanding on unchanged terms
Share issuance was determined over the trading day beginning November 5, 2025
Exchanges were conducted as private placements under Section 4(a)(2) of the Securities Act

Nov 13, 2025, 1:30 PM

Press Release

Seagate Technology executes $500M senior notes exchange

STX

Debt Issuance

On November 4, 2025, Seagate privately exchanged $500 million of its 3.50% Exchangeable Senior Notes due 2028 for approximately $503.4 million in cash and ordinary shares, reducing the remaining notes to about $1.0 billion.
The agreements, exempt from Securities Act registration, will close by November 10, 2025, with the exact share issuance determined over a one-day trading period starting November 5, 2025.
Seagate’s total long-term debt was approximately $3.5 billion as of October 2025; the stock rose 12% to a record intraday high and is up 226% year-to-date following the announcement.
Analyst opinions are mixed: some maintain Buy ratings with ~$275 price targets, while TipRanks’ AI Analyst rates the stock Neutral due to high leverage and valuation risks.

Nov 5, 2025, 9:49 PM

Morningstar

Seagate Technology reports Q1 fiscal 2026 results

STX

Earnings

Guidance Update

Dividends

Posted $2.63 B revenue, up 21% YoY; 40.1% non-GAAP gross margin and 29% non-GAAP operating margin; $2.61 non-GAAP EPS.
Data center segment (nearline) drove 80% of revenue ($2.1 B) and shipped 182 EB, up 32% YoY.
Advanced HAMR roadmap: qualified 5 global CSPs on Mosaic 3 (up to 36 TB), shipped over 1 M Mosaic drives; targeting 50% exabyte crossover in H2 calendar 2026.
Q2 guidance: $2.7 B ± $100 M revenue (+16% YoY), ~30% non-GAAP operating margin, $2.75 ± $0.20 EPS.
Returned capital: 3% dividend increase to $0.74/share, repurchased $29 M of stock; generated $427 M free cash flow and ended with 1.5× net leverage.

Oct 28, 2025, 9:00 PM

Transcript

Seagate reports Q1 2026 results

STX

Earnings

Guidance Update

Dividends

Seagate delivered a strong start to fiscal 2026: revenue grew 21% YoY, non-GAAP gross margin hit 40.1%, non-GAAP operating margin reached 29%, and non-GAAP EPS was $2.61, above guidance.
Data center end market drove 80% of revenue; Seagate shipped over 1 million Mosaic HAMR drives, qualified 5 global CSPs on its 3+ TB per disk platform (up to 36 TB), and is on track for 50% exabyte crossover in H2 2026.
Generated $427 M free cash flow, closed with $2.4 B in cash & equivalents and 1.5x net leverage; returned $153 M via dividends (raising the quarterly payout ~3% to $0.74) and repurchased $29 M of stock.
Q2 guidance: revenue of $2.7 B ± $100 M (+16% YoY), non-GAAP EPS of $2.75 ± 0.20, and operating margin ~30%.

Oct 28, 2025, 9:00 PM

Transcript

Seagate delivers strong Q1 2026 financial results

STX

Earnings

Guidance Update

Product Launch

Seagate delivered 21% YoY revenue growth and set a record non-GAAP gross margin of 40.1%, with non-GAAP operating margin at 29% and EPS of $2.61, exceeding guidance.
Generated $427 million in free cash flow and closed the quarter with $2.4 billion in liquidity; returned $153 million via dividends (up 3% to $0.74/share) and $29 million in share repurchases.
Advanced its HAMR roadmap by shipping over 1 million Mosaic drives and qualifying 5 global CSPs on 36 TB platforms, targeting 50% exabyte crossover by H2 CY2026 and ramping 44 TB drives in H1 CY2026.
Issued Q2 guidance of $2.7 billion ± $100 million revenue (mid-point +16% YoY) with non-GAAP EPS of $2.75 ± 0.20 and an expected operating margin of ~30%.

Oct 28, 2025, 9:00 PM

Transcript

Seagate Technology announces Q1 FY26 results

STX

Earnings

Dividends

Revenue Acceleration/Inflection

Seagate reported Q1 FY26 revenue of $2.63 B, up 21% YoY.
Achieved record gross margin of 40.1%, up ~220 bps QoQ and ~680 bps YoY.
Operating margin expanded to 29.0%, up ~280 bps QoQ and ~860 bps YoY.
EPS of $2.61, exceeding the high end of guidance.
Generated $427 M free cash flow and raised quarterly dividend by ~3% to $0.74 per share.

Oct 28, 2025, 9:00 PM

Presentation

Seagate Technology reports fiscal Q1 2026 results

STX

Earnings

Dividends

Share Buyback

Revenue of $2.63 billion (up 21% YoY) and record GAAP gross margin of 39.4% (non-GAAP 40.1%)
GAAP EPS of $2.43 and non-GAAP EPS of $2.61
Operating cash flow of $532 million, free cash flow of $427 million; returned $182 million to shareholders via dividends and repurchases; raised quarterly dividend ~3% to $0.74/share
Ramping shipments of Mozaic HAMR products, now qualified with five of the world’s largest cloud customers amid strong AI-driven demand

Oct 28, 2025, 8:07 PM

8-K

Earnings Transcripts

Quarterly earnings call transcripts for Seagate Technology Holdings.

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