What does Seagate Technology do and what are its main business segments?

Did Seagate Technology beat or miss consensus estimates last quarter?

What is the revenue and EPS growth rate for Seagate Technology year over year?

What guidance did Seagate Technology's management provide for the next earnings period?

What is Seagate Technology's gross profit margin?

What were the key takeaways from Seagate Technology’s earnings call?

What were the key takeaways from Seagate Technology's earnings call?

What is the market's earnings forecast for Seagate Technology next quarter?

- **Record Q2 Performance**: $2.83B revenue (22% YoY), 42.2% gross margin, $3.11 EPS beat expectations.
- **HAMR Momentum**: 1.5M HAMR units shipped, Mozaic 3 qualified with all U.S. CSPs, Mozaic 4 ramping Q1 2026.
- **AI-Driven Growth**: Exabyte shipments +26% YoY, nearline capacity fully allocated through 2026.
- **Financial Strength**: $607M free cash flow, $500M debt retired, Q3 EPS guidance $3.40.
- **2027 Outlook**: Flat to up pricing possible, HAMR 4TB/drive to drive cost efficiency improvements.

**【CEO Summary Section】**
- Seagate achieved record Q2 revenue of $2.83 billion, up 22% YoY, driven by strong data center demand and HAMR technology adoption.
- Non-GAAP gross margin expanded to 42.2%, supported by higher capacity drives (average nearline capacity up 22% YoY) and pricing strategy execution.
- HAMR shipments ramped to 1.5M units Q2, with Mozaic 3 qualified across all major U.S. CSPs and Mozaic 4 expected to begin ramp in Q1 2026.
- Nearline capacity fully allocated through 2026, with visibility into 2027 orders and discussions for 2028 demand growth.
- AI-driven video and agentic AI applications are fueling sustained demand for mass capacity storage, with exabyte shipments up 26% YoY.

**【CFO Financial Commentary】**
- Q2 non-GAAP EPS of $3.11, up 19% QoQ, with operating margin expanding to 31.9% due to cost control and mix improvement.
- Free cash flow of $607 million, highest in 8 years, supporting debt reduction ($500M senior notes retired) and shareholder returns ($154M dividends).
- Q3 guidance: Revenue $2.9B (±$100M), non-GAAP EPS $3.40 (±$0.20), with operating margin expected to approach mid-30% range.
- Capital expenditures maintained at 4% of revenue, supporting HAMR transition while preserving cash flow generation.

**【Q&A Key Highlights】**
- **Gross Margin Outlook**: Flat to slightly up pricing possible in 2027 as HAMR 4TB/drive ramps, with cost per terabyte improving 10-15% YoY.
- **HAMR Adoption**: Mozaic 4 qualification progressing well, with CSPs expecting to begin ordering in Q1 2026.
- **Demand Visibility**: 2026 nearline capacity fully allocated, with 2027 orders beginning in Q2 2026 and 2028 demand discussions underway.
- **AI Impact**: Agentic AI applications require persistent access to historic data, driving need for mass capacity storage at the edge.
- **LTAs**: Pricing for 2027 volumes to be negotiated in H2 2026, with customers prioritizing supply assurance over price sensitivity.


Seagate Technology Holdings plc (STX) Q2 2026 Earnings Call Transcript

- **Record Financials**: Q1 revenue $2.63B (+21% YoY), non-GAAPAAP EPS $2.61 beats guidance, 40.1% gross margin record.
- **HAMR Dominance**: 1M+ Mozaic drives shipped, 50% exabyte crossover by H2 2026. 5 CSPs qualified on 3+ TB/drive platforms.
- **AI-Driven Growth**: 50x YoY inferencing token growth, 275M AI-generated videos highlight unstructured data demand.
- **Profitability Expansion**: Q1 incremental margin 70%, Q2 operating margin target 30%, 50%+ exabyte YoY growth.
- **Sustainability**: 75%+ free cash flow return via dividend ($0.74/share) and buybacks, net leverage 1.5x.

**【CEO Summary Section】**
- Fiscal Q1 2026 revenue reached $2.63 billion, up 21% year-over-year and 8% sequentially, driven by strong demand for high-capacity nearline HAMR drives.
- Non-GAAP gross margin set a record at 40.1%, up 220 basis points sequentially, while operating margin expanded to 29%, the highest since FY2012.
- Non-GAAP EPS of $2.61 exceeded guidance, reflecting improved profitability and cost control.
- Data center revenue accounted for 80% of total, with cloud service providers leading demand for 24+ TB drives, up 32% YoY in exabyte volume.
- 1 million Mozaic HAMR drives shipped in Q1, with 50% exabyte crossover expected in H2 2026. 5 global CSPs qualified on 3+ TB/drive platforms, with remaining 3 to qualify by mid-2026.
- AI inferencing growth (50x YoY in token consumption) driving demand for unstructured data storage, particularly video content (e.g., 275M AI-generated videos on Google Veo).
- Strategic focus on HAMR-based Mozaic platforms (up to 44 TB/drive) to maintain TCO advantage over alternatives.

**【CFO Financial Commentary】**
- GAAP net income: $427 million (free cash flow), up 19% YoY. Non-GAAP operating expenses: $291 million, flat sequentially.
- Exabyte shipments: 182 EB (+32% YoY), with 159 EB to data centers (+23% QoQ). Nearline average drive capacity increased 26% YoY.
- Capital expenditures: $105 million (4% of revenue), with FY26 capex expected within 4-6% target range.
- Dividend increased 3% to $0.74/share. Share buybacks: $29 million at $187/share, with plans to continue opportunistic repurchases.
- Cash balance: $2.4 billion. Net leverage: 1.5x, down from 1.8x prior quarter.
- Q2 2026 guidance: Revenue $2.7 billion ±$100M, non-GAAP EPS $2.75 ±$0.20.

**【Q&A Highlights】**
- **Supply/Demand Balance**: Build-to-order contracts lock in 80%+ of nearline production through 2026. CSPs have visibility through 2027. No unit capacity additions; focus on exabyte growth via HAMR transitions.
- **Incremental Margins**: Q1 incremental margin ~70%, higher than Analyst Day 50% target. Sustained due to HAMR mix shift and pricing strategy. Q2 margin expansion to ~30%.
- **Cost Reduction**: Mid-teens cost per terabyte decline expected in 2026, driven by HAMR qualification ramp (2 CSPs on 40+ TB drives).
- **AI Impact**: Video content (e.g., AI-generated videos 20,000x larger than text) driving 80%+ of exabyte growth. CSPs report 50x YoY inferencing token growth.
- **HAMR Adoption**: 50% exabyte crossover in H2 2026. 5 CSPs qualified on 3+ TB/drive, with remaining 3 to qualify by mid-2026. 1M+ Mozaic drives shipped in Q1.
- **Seasonality**: Edge IoT revenue seasonal dip expected in Q3, but data center dominance (80% of revenue) mitigates impact.

Seagate Technology Holdings plc (STX) Q1 2026 Earnings Call Transcript

- **Record Financial Performance**: FY2025 revenue up 39% to $9.1B, non-GAAP EPS $8.10, with Q4 gross margin hitting 37.9%.
- **HAMR Momentum**: Mozaic 3+ qualified with three CSPs, 4+ terabyte per disk ramp starting Q1 2026. HAMR drives 44% of nearline exabytes in Q4.
- **AI-Driven Growth**: Nearline exabyte shipments up 52% YoY, supported by video, analytics, and edge AI workloads. Edge data centers adopting HAMR for TCO efficiency.
- **Free Cash Flow & Returns**: $425M Q4 free cash flow, $1.3B FY2025 total, with 75% returned to shareholders. Share buybacks resuming Q4 2025.
- **Tax & Margin Outlook**: 14% tax rate in FY2026, but gross margin expansion to 40%+ expected by mid-2026 as HAMR crossover occurs.

**【CEO Summary Section】**
- Fiscal 2025 revenue grew 39% YoY to $9.1B, with non-GAAP EPS reaching $8.10, driven by nearline cloud demand and HAMR adoption.
- June quarter revenue: $2.44B (30% YoY growth), gross margin expanded to 37.9%, and non-GAAP EPS hit $2.59.
- HAMR-based Mozaic 3+ products qualified with three major CSPs, with 4+ terabyte per disk ramp starting Q1 2026.
- Edge data center demand growing due to AI workloads, with enterprise solutions integrating HAMR for TCO efficiency.
- Resumed share repurchases in Q4 2025, targeting 4-6% of revenue for FY26 capital expenditures.

**【CFO Financial Commentary】**
- June quarter free cash flow: $425M (nearly double Q1), with $153M returned to shareholders via dividends.
- Fiscal 2025 free cash flow: $1.3B, with 75% returned to shareholders.
- Debt reduced to $5B (net leverage 1.8x), targeting further reduction with expanding profits.
- September quarter guidance: $2.5B ±$150M revenue (15% YoY growth), non-GAAP EPS $2.30 ±$0.20.
- Global minimum tax rate of 14% expected to impact FY26 EPS, partially offset by share buybacks.

**【Q&A Key Highlights】**
- **Gross Margin Expansion**: HAMR drives lower cost per terabyte, with Mozaic 3+ accreting to margins. September quarter gross margin expected to expand beyond 38%.
- **AI Demand**: Nearline exabyte shipments up 52% YoY, driven by video, analytics, and edge AI workloads. CSPs using tiered storage solutions with HAMR for cost savings.
- **HAMR Ramp**: 4+ terabyte per disk platform qualified with a global CSP, targeting volume ramp Q1 2026. Three CSPs qualified on Mozaic 3+, with additional qualifications progressing.
- **Tax Impact**: 14% tax rate for FY26, partially offsetting EPS growth. Convertible notes dilution expected to be mitigated by buybacks.
- **Supply Chain**: Build-to-order contracts provide visibility through mid-2026, with minimal tariff impact expected.


Seagate Technology Holdings plc (STX) Q4 2025 Earnings Call Transcript

- **Record Profitability**: 31% YoY revenue growth ($2.16B) with non-GAAP EPS of $1.90, driven by nearline cloud demand and HAMR technology.
- **Gross Margin Expansion**: 36.2% gross margin (up 70bps) and 23.5% operating margin, highest in company history.
- **HAMR Breakthrough**: 3TB-per-disk Mozaic drives ramping to hyperscale customers, with shipments set to surge in H2 2025.
- **Demand Visibility**: Build-to-order agreements extend into 2026, supported by hyperscale and edge data center growth.
- **Financial Strength**: $216M free cash flow, $5.1B debt (2.1x net leverage), and $2.1B liquidity for strategic investments.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 revenue reached $2.16 billion, up 31% year-over-year, driven by nearline cloud demand and high-capacity PMR/HAMR products. Non-GAAP EPS of $1.90 hit the top of guidance.
- **Profitability Expansion**: Gross margin expanded 70bps to 36.2%, operating margin rose to 23.5%, marking the third-highest in company history. Free cash flow increased to $216 million.
- **HAMR Momentum**: HAMR-based Mozaic drives (3TB per disk) are ramping to qualified customers, with shipments expected to accelerate in H2 2025. Nearline exabytes up 55% YoY to 120 exabytes.
- **Demand Visibility**: Build-to-order agreements extend into H1 2026, with hyperscale and edge data centers driving demand. Tariffs expected to have minimal direct impact in Q4.

**【CFO Financial Commentary】**
- **Revenue Mix**: Mass capacity revenue ($1.7B) up 48% YoY, nearline exabytes (+55% YoY) dominate at 90% of mass capacity. Legacy products down 8% sequentially due to seasonal trends.
- **Cost Control**: Operating expenses down 5% QoQ to $274M, benefiting from R&D timing and one-off savings. Free cash flow guidance for H2 2025 remains strong.
- **Balance Sheet**: Debt reduced by $536M to $5.1B, net leverage 2.1x. Liquidity remains robust at $2.1B. Share buybacks to resume post-debt reduction.
- **Tariff Impact**: June quarter outlook ($2.4B ±$150M) assumes minimal direct impact, but monitoring secondary demand effects.

**【Q&A Key Themes】**
1. **Supply Constraints**: Q3 undersupply resolved, Q4 guidance reflects improved execution. HAMR ramp contributed to upside vs. prior guidance.
2. **HAMR Adoption**: Second major CSP qualification nearing completion, positive feedback from other cloud customers. HAMR shipments to accelerate in coming quarters.
3. **Tariff Strategy**: Evaluating geographic supply chain shifts, but prioritizing current build-to-order model. Cost pass-through last resort.
4. **AI Storage Trends**: Hard drives critical for AI training data storage, model checkpoints, and content generation. disaggregated storage architectures favor HDD scalability.
5. **Financial Discipline**: Maintaining 20-25% operating margin target. Capital allocation focused on debt reduction, dividends, and strategic investments.


Seagate Technology (STX)-29 Apr 25-2025 Q3 Earnings call transcript

- **Record Q2 Performance**: $2.33B revenue, $2.03 EPS, 35.5% gross margin – all metrics at multi-year highs.
- **HAMR Breakthrough**: 36TB Mosaic sampling begins, with CSP qualification and volume ramp starting H2 CY25.
- **AI-Driven Growth**: HDDs critical for Gen AI data storage, with video analytics and edge computing driving 170x data growth by 2028.
- **Q3 Caution**: $200M revenue impact from supply constraints, but gross margin trends up and build-to-order commitments intact.
- **Long-Term Confidence**: 50%+ exabyte growth in 2024, hyperscale CapEx expansion, and HAMR-enabled capital efficiency.


**【CEO Summary Section】**
- **Revenue Growth**: Q2 FY25 revenue of $2.33B, up 7% sequentially, driven by nearline cloud demand. Non-GAAP EPS of $2.03, highest in 12 quarters.
- **Gross Margin Expansion**: Non-GAAP gross margin improved 220bps to 35.5%, benefiting from high-capacity PMR and HAMR products.
- **HAMR Momentum**: Sampling 36TB Mosaic drives, with initial CSP qualification underway. Expect significant volume ramp in H2 CY25.
- **AI & Data Growth**: HDDs critical for Gen AI data lakes, with video analytics and edge storage driving exabyte growth.

**【CFO Financial Commentary】**
- **Cash Flow**: Free cash flow of $150M in Q2, up from $27M prior quarter. FY25 capex expected at low end of 4-6% of revenue range.
- **Debt Reduction**: Retired $479M of notes, reducing net leverage to 2.5x. No debt maturities until FY27.
- **Q3 Outlook**: Revenue $2.1B (±$150M), non-GAAP EPS $1.70 (±$0.20). Supply constraints limit upside, but gross margin trends positive.

**【Q&A Key Themes】**
- **Supply Constraint Impact**: $200M revenue impact in Q3 due to production issue, resolved but limiting in-quarter upside. No demand pull-forward expected.
- **HAMR Margin Contribution**: HAMR drives accretive to gross margin, with ramp accelerating in H2 CY25. 36TB sampling to multiple customers.
- **Cycle Sustainability**: Build-to-order model provides 6+ months visibility. Exabyte shipments up 50% in 2024, hyperscale CapEx growth to continue.


Actual														1.38	1.2	0.93	1.29	1.48	2	2.35	2.41	1.81	1.59	0.48	0.16	-0.28	-0.18	-0.22	0.12	0.33	1.05	1.58	2.03	1.9	2.59	2.61	3.11
Forecast														1.2977	1.2946	0.8859	1.1335	1.3282	1.87	2.2067	2.3568	1.873	1.8924	0.7107	0.092	0.2479	-0.2716	-0.2398	-0.0578	0.2914	0.7617	1.4846	1.877	1.7387	2.4492	2.4009	2.83
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+6.34%	-7.31%	+4.98%	+13.81%	+11.43%	+6.95%	+6.49%	+2.26%	-3.36%	-15.98%	-32.46%	+73.91%	-212.95%	+33.73%	+8.26%	+307.61%	+13.25%	+37.85%	+6.43%	+8.15%	+9.28%	+5.75%	+8.71%	+9.89%

Actual	--	--	--	--	--	--	--	--	--	--	--	--	--	2.72B	2.52B	2.31B	2.62B	2.73B	3.01B	3.12B	3.12B	2.80B	2.63B	2.04B	1.89B	1.86B	1.60B	1.45B	1.55B	1.66B	1.89B	2.17B	2.33B	2.16B	2.44B	2.63B	2.83B
Forecast	--	--	--	--	--	--	--	--	--	--	--	--	--	2.61B	2.62B	2.35B	2.56B	2.68B	2.97B	3.11B	3.11B	2.80B	2.79B	2.10B	1.82B	1.98B	1.68B	1.51B	1.55B	1.68B	1.87B	2.13B	2.32B	2.12B	2.42B	2.55B	2.73B
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+3.99%	-3.76%	-1.32%	+2.27%	+1.91%	+1.36%	+0.31%	+0.08%	-0.03%	-5.85%	-3.13%	+3.42%	-6.02%	-4.88%	-3.58%	+0.08%	-1.31%	+0.85%	+1.81%	+0.23%	+1.68%	+0.93%	+3.18%	+3.65%

STX

STX fundamentals

STX Q2 2026 Earnings

Earnings Call

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STX

STX fundamentals

STX Q2 2026 Earnings

Earnings Call

STX Earnings Call Summary for Q2/20265:00 PM on Jan 27, 2026

STX Earnings Call Summary for Q1/20265:00 PM on Oct 28, 2025

STX Earnings Call Summary for Q4/20255:00 PM on Jul 29, 2025

STX Earnings Call Summary for Q3/20255:00 PM on Apr 29, 2025

STX Earnings Call Summary for Q2/20255:00 PM on Jan 21, 2025

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