Seagate Technology Holdings PLC
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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.
Strong Revenue Growth: Seagate reported revenue of $2.63 billion for the September quarter, up 8% sequentially and 21% year-over-year.
Record Margins: Gross margin reached a company record at 40.1%, with operating margin climbing to 29%, both driven by higher capacity drive transitions and strong pricing strategy.
HAMR Technology Progress: Five global cloud service providers are now qualified on Seagate’s Mozaic HAMR-based drives, and over 1 million Mozaic drives shipped in the quarter.
Strong Data Center Demand: Data center revenue made up 80% of total revenue, with continued robust demand from cloud customers and a tight supply environment committed through 2026.
Dividend Increase: Quarterly dividend raised by about 3% to $0.74 per share, reflecting confidence in future cash flow.
Raised Guidance: December quarter revenue expected at $2.7 billion (plus or minus $100 million), implying 16% year-over-year growth at the midpoint, with further margin expansion expected.
AI Driving Storage Demand: AI applications, especially video and inferencing workloads, are accelerating exabyte growth and increasing the value of higher capacity storage.