Seagate Technology Holdings PLC
XBER:847
Seagate Technology Holdings PLC
Seagate Technology Holdings PLC, founded in 1978, has long been a pivotal player in the data storage industry. The company started its journey by producing hard disk drives, which soon became a staple technology in computing, revolutionizing how data was stored and accessed. With computing demands consistently swelling, Seagate capitalized on this trend by innovating continually, often setting benchmarks in storage capacity and speed. Headquartered in Dublin, Ireland, the company transcended its initial offerings, progressively expanding into the design and manufacturing of data solutions that encompass not only hard disk drives but also solid-state drives, providing high-performance storage options essential for today's data-driven landscapes.
Seagate's business model intricately weaves together original equipment manufacturers (OEMs), distributors, and direct sales channels. Revenue streams stem from selling these drives and storage solutions, which are integrally built into computers, laptops, servers, and data centers around the globe. Moreover, Seagate has broadened its horizons by investing in emerging technologies like cloud storage solutions and strategically acquiring relevant enterprises to bolster its offerings. By consistently addressing the surging global demand for data storage, Seagate has ensured its relevance and growth through strategic partnerships, innovation, and a reliable product lineup that underscores its commitment to shaping how data is stored and managed worldwide.
Seagate Technology Holdings PLC, founded in 1978, has long been a pivotal player in the data storage industry. The company started its journey by producing hard disk drives, which soon became a staple technology in computing, revolutionizing how data was stored and accessed. With computing demands consistently swelling, Seagate capitalized on this trend by innovating continually, often setting benchmarks in storage capacity and speed. Headquartered in Dublin, Ireland, the company transcended its initial offerings, progressively expanding into the design and manufacturing of data solutions that encompass not only hard disk drives but also solid-state drives, providing high-performance storage options essential for today's data-driven landscapes.
Seagate's business model intricately weaves together original equipment manufacturers (OEMs), distributors, and direct sales channels. Revenue streams stem from selling these drives and storage solutions, which are integrally built into computers, laptops, servers, and data centers around the globe. Moreover, Seagate has broadened its horizons by investing in emerging technologies like cloud storage solutions and strategically acquiring relevant enterprises to bolster its offerings. By consistently addressing the surging global demand for data storage, Seagate has ensured its relevance and growth through strategic partnerships, innovation, and a reliable product lineup that underscores its commitment to shaping how data is stored and managed worldwide.
Record Quarter: Seagate delivered record-breaking revenue, exabyte shipments, gross margin, and operating margin, exceeding both top and bottom line expectations for the December quarter.
Revenue Growth: Revenue was $2.83 billion, up 7% sequentially and 22% year-over-year, with strong demand from data center customers driving results.
Profitability: Non-GAAP gross margin reached 42.2%, up 210 basis points QoQ, and non-GAAP operating margin hit 31.9%. Non-GAAP EPS was $3.11, up 19% QoQ.
HAMR Technology: HAMR-based Mozaic drives are ramping, now qualified with all major US cloud service providers; next-gen Mozaic 4 products are on track for launch.
Strong Demand: Nearline capacity is fully allocated through 2026, with customers already planning for 2027 and 2028, reflecting robust, persistent demand.
Margin and Pricing Outlook: Management expects gross margins and profitability to continue improving sequentially throughout 2026, driven by product mix and stable or slightly rising pricing.
