Seagate Technology Holdings PLC
NASDAQ:STX
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Seagate Technology Holdings PLC
NASDAQ:STX
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Seagate Technology Holdings PLC
Seagate Technology makes hard disk drives and related storage products used to store large amounts of digital data. Its core products serve cloud data centers, enterprise systems, and consumer devices that need cheap, high-capacity storage. The company also sells data storage platforms and support services around those drives. Seagate earns money mainly by selling storage hardware to computer and server makers, cloud companies, and large businesses that run their own data systems. It also sells through distributors and other channel partners that supply smaller businesses and consumers. Because storage hardware is a physical component inside larger systems, Seagate is a supplier to the companies that build and run those systems rather than a direct consumer brand. What makes Seagate’s business different is that it focuses on mass data storage, especially where cost per terabyte and long-term reliability matter most. Its drives are used in places that keep huge archives of files, video, backups, and cloud data. That puts Seagate in a key role inside the data-storage supply chain, competing on engineering, manufacturing scale, and the ability to deliver dependable storage for demanding workloads.
Seagate Technology makes hard disk drives and related storage products used to store large amounts of digital data. Its core products serve cloud data centers, enterprise systems, and consumer devices that need cheap, high-capacity storage. The company also sells data storage platforms and support services around those drives.
Seagate earns money mainly by selling storage hardware to computer and server makers, cloud companies, and large businesses that run their own data systems. It also sells through distributors and other channel partners that supply smaller businesses and consumers. Because storage hardware is a physical component inside larger systems, Seagate is a supplier to the companies that build and run those systems rather than a direct consumer brand.
What makes Seagate’s business different is that it focuses on mass data storage, especially where cost per terabyte and long-term reliability matter most. Its drives are used in places that keep huge archives of files, video, backups, and cloud data. That puts Seagate in a key role inside the data-storage supply chain, competing on engineering, manufacturing scale, and the ability to deliver dependable storage for demanding workloads.
Strong quarter: Seagate said March quarter revenue was $3.1 billion, up 44% year over year, with record gross margin, more than doubled operating income, and free cash flow close to $1 billion.
Demand backdrop: Management described cloud and AI-driven storage demand as very strong, with nearline capacity almost fully allocated through calendar 2027 and continued momentum from major hyperscale customers.
HAMR ramp: Seagate said Mozaic 4 is now shipping, two of the world’s largest cloud providers are qualified on the 4+ terabyte per disk product, and the company expects Mozaic 4 to become a majority of HAMR exabyte shipments exiting calendar 2026.
Outlook raised: June quarter guidance calls for revenue of $3.45 billion, plus or minus $100 million, and EPS of $5 plus or minus $0.20, implying another step up in growth and margins.
Longer-term confidence: Management said it now sees a path to at least 20% annual revenue growth over the next few years, citing durable demand, the Mozaic roadmap and disciplined pricing.
Capital returns: Seagate used cash to retire $641 million of gross debt in the quarter and said the next priority after debt reduction will likely be share buybacks.
