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Seagate Technology Holdings PLC
In the dynamic landscape of data storage and management, Seagate Technology Holdings PLC stands as a venerable gladiator, deftly maneuvering the shifting sands of technological evolution. Founded in 1979, Seagate has oiled the gears of information technology with its pioneering development and manufacturing of hard disk drives (HDDs). The company carved a niche for itself by combating the complex challenge of data storage with solutions that blend reliability, affordability, and the vital capacity required by a data-driven world. Seagate leverages economies of scale, offering a wide range of storage solutions, from personal computing needs to massive enterprise demands. By aligning their operations with growing data trends, such as cloud storage and data center expansions, Seagate ensures its offerings are not just relevant but indispensable.
The company thrives on an intricate ecosystem of research, development, and marketing that encompasses producing high-performance HDDs, solid-state drives (SSDs), and advanced data storage systems. Picture Seagate's vast supply chain and robust distribution network, seamlessly delivering storage devices across the globe, thereby ensuring that bits and bytes find homes in servers, data centers, and even consumer gadgets. Revenue streams flow from the sale of these devices, licensing of technology, and long-term partnerships with major tech entities constantly hungry for improved storage solutions. Leveraging its vast technical expertise and market reach, Seagate continues to capitalize on the explosive growth in data generation, storing the world's information one drive at a time.
In the dynamic landscape of data storage and management, Seagate Technology Holdings PLC stands as a venerable gladiator, deftly maneuvering the shifting sands of technological evolution. Founded in 1979, Seagate has oiled the gears of information technology with its pioneering development and manufacturing of hard disk drives (HDDs). The company carved a niche for itself by combating the complex challenge of data storage with solutions that blend reliability, affordability, and the vital capacity required by a data-driven world. Seagate leverages economies of scale, offering a wide range of storage solutions, from personal computing needs to massive enterprise demands. By aligning their operations with growing data trends, such as cloud storage and data center expansions, Seagate ensures its offerings are not just relevant but indispensable.
The company thrives on an intricate ecosystem of research, development, and marketing that encompasses producing high-performance HDDs, solid-state drives (SSDs), and advanced data storage systems. Picture Seagate's vast supply chain and robust distribution network, seamlessly delivering storage devices across the globe, thereby ensuring that bits and bytes find homes in servers, data centers, and even consumer gadgets. Revenue streams flow from the sale of these devices, licensing of technology, and long-term partnerships with major tech entities constantly hungry for improved storage solutions. Leveraging its vast technical expertise and market reach, Seagate continues to capitalize on the explosive growth in data generation, storing the world's information one drive at a time.
Strong Revenue Growth: Seagate reported September quarter revenue of $2.63 billion, up 21% year-over-year and 8% sequentially, driven by robust demand from cloud and enterprise customers.
Record Margins: Gross margin reached a company record of 40.1%, and operating margin climbed to 29%, both above recent history and guidance.
EPS Beat: Non-GAAP EPS was $2.61, exceeding the high end of guidance.
HAMR Rollout: Five global cloud service providers are now qualified on Mozaic HAMR drives, and over 1 million Mozaic drives shipped in the quarter; transition to higher capacity drives is ahead of expectations.
Strong Demand Visibility: High-capacity nearline production is largely committed under build-to-order contracts through calendar 2026, with longer-term agreements providing visibility into 2027.
Dividend Increase: Seagate increased its quarterly dividend by 3% to $0.74 per share, reflecting confidence in long-term cash flow.
Guidance Raised: December quarter revenue is guided to $2.7 billion (plus or minus $100 million), implying a 16% year-over-year increase, and operating margin is expected to expand to around 30%.