Nearline demand and pricing drive revenue growth
Revenue increased 34% to $12.2 billion, primarily due to a 40% rise in nearline exabyte shipments and favorable pricing actions.
Source: 10-K Item 7 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Seagate Technology Holdings plc shipped 40% more nearline hard drive exabytes in fiscal year 2026, fueled by cloud and AI infrastructure demand, while pricing actions dramatically lifted margins. Management also cut long-term debt by $1.4 billion. However, the company warned that trade policy shifts and geopolitical uncertainty could disrupt future results.
Revenue
$12.2B
+34.06% YoY
EPS (Diluted)
$13.90
+105.32% YoY
Operating Income
$4.09B
+116.61% YoY
Source: SEC XBRL
Seagate Technology Holdings (STX) reported FY2026 revenue of $12.2B, up 34.1% year over year. Operating margin was 33.6%, up 12.8 points from 20.8% a year earlier. Operating cash flow was $3.67B, up 239.2% year over year.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 5.71 | 5.14 | Beat +11.1% |
| Mar 2026 | 4.10 | 3.54 | Beat +15.7% |
| Dec 2025 | 3.11 | 2.84 | Beat +9.4% |
| Sep 2025 | 2.61 | 2.40 | Beat +8.9% |
Compiled by AI from 10-K Item 7 of this filing
Revenue increased 34% to $12.2 billion, primarily due to a 40% rise in nearline exabyte shipments and favorable pricing actions.
Source: 10-K Item 7 MD&A
Gross margin improved to 46% from 35%, driven by pricing actions and a product mix shift toward higher-capacity products.
Source: 10-K Item 7 MD&A
A $105 million charge was recorded in fiscal 2026 related to a litigation matter, impacting operating income.
Source: 10-K Item 7 MD&A
The company reduced outstanding debt by $1.4 billion through exchanges and repurchases, lowering long-term debt to $3.38 billion.
Source: 10-K Item 7 MD&A
Capital expenditures are expected to be higher in fiscal 2027 to support the volume ramp of hard drives utilizing HAMR technology, staying within 4-6% of revenue.
Source: 10-K Item 7 MD&A
Compiled by AI from 10-K Item 1A of this filing · 3 high, 2 medium, 0 low
A limited number of key customers account for a significant portion of revenue, with one customer representing approximately 14% of consolidated revenue in fiscal 2026. Loss of or reduced purchases from these customers could have a disproportionate adverse effect.
Source: 10-K Item 1A
Transitioning to HAMR technology for higher-capacity HDDs involves complex development and qualification processes. Failure to execute could lead to lost sales and market share and harm the company's competitive position.
Source: 10-K Item 1A
Changes in U.S. trade policy, including sanctions or tariffs, may materially and adversely impact the business given its global manufacturing and sales footprint. Evolving trade tensions create ongoing uncertainty.
Source: 10-K Item 1A
A substantial portion of revenue comes from distributors and retailers, a channel characterized by intense price competition and volatile demand. Deterioration in this channel or financial difficulties of channel partners could adversely affect results.
Source: 10-K Item 1A
Nearline storage solutions have sales cycles exceeding one year, impairing the ability to forecast demand accurately. This can lead to excess inventory, write-downs, or inability to meet customer orders on time.
Source: 10-K Item 1A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 12.20 $B | 9.10 $B | +34.06% |
Cost of Revenue $B | 6.64 $B | 5.90 $B | +12.55% |
Operating Income $B | 4.09 $B | 1.89 $B | +116.61% |
Net Income $B | 3.18 $B | 1.47 $B | +116.75% |
EPS (Basic) $ | 14.54 $ | 6.93 $ | +109.81% |
EPS (Diluted) $ | 13.90 $ | 6.77 $ | +105.32% |
R&D Expense $M | 755.00 $M | 724.00 $M | +4.28% |
SG&A Expense $M | 577.00 $M | 561.00 $M | +2.85% |
Answers draw on this SEC filing and the data on this page
STX reported strong financial performance in Q3 FY2026 with significant increases in revenue and net income, driven by operational efficiencies and cost management.
STX reported strong financial performance in Q2 FY2026, with significant growth in revenue and net income driven by improved operating efficiency and reduced liabilities.
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