Seagate Technology Holdings (STX) Q2 FY2026 earnings: revenue $2.8 billion, up 21.5% on the year

Seagate Technology Holdings plc (STX) reported revenue of $2.8 billion for Q2 FY2026, the quarter ended 2 January 2026, up 21.5% on the same quarter a year earlier. Net income was $593 million, up 76.5% on the year, and diluted earnings per share $2.60. The figures are the company's own, from the 10-Q it filed with the SEC on 30 January 2026.

Revenue

$2.8 billion

+21.5% on the year · +7.5% on the quarter

Q3 FY2024Q2 FY2026

Operating margin

29.8%

21.0% a year earlier

Q3 FY2024Q2 FY2026

Net income

$593 million

+76.5% on the year · +8.0% on the quarter

Q3 FY2024Q2 FY2026

Diluted EPS

$2.60

+67.7% on the year · +7.0% on the quarter

Q3 FY2024Q2 FY2026

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Guidance figures: 2 raised, 1 lowered, 1 kept.

Revenue reached $2.83 billion: Revenue was $2,825 million against $2,325 million a year earlier, an increase of about 21.5%. Management said results exceeded its own expectations on both the top and bottom line.
Diluted EPS rose on higher income: GAAP diluted EPS was $2.60 against $1.55 a year earlier, and non-GAAP diluted EPS was $3.11 against $2.03. GAAP net income was $593 million against $336 million.
Gross margin rose to 41.6%: GAAP gross margin was 41.6% against 34.9% a year earlier, and non-GAAP gross margin was 42.2% against 35.5%. Management described these as new records for gross margin.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q2 FY2026	Q1 FY2026	Q2 FY2025	On the quarter	On the year
Revenue	2,825	2,629	2,325	+7.5%	+21.5%
Cost of revenue	1,649	1,592	1,513	+3.6%	+9.0%
Gross profit	1,176	1,037	812	+13.4%	+44.8%
Gross margin	41.6%	39.4%	34.9%
Research and development	187	186	184	+0.5%	+1.6%
Selling, general and administrative	143	144	139	-0.7%	+2.9%
Operating income	843	694	488	+21.5%	+72.7%
Operating margin	29.8%	26.4%	21.0%
Interest expense	72.0	80.0	84.0	-10.0%	-14.3%
Pre-tax income	707	614	350	+15.1%	+102.0%
Income tax	114	65.0	14.0	+75.4%	+714.3%
Effective tax rate	16.1%	10.6%	4.0%
Net income	593	549	336	+8.0%	+76.5%
Net margin	21.0%	20.9%	14.5%
Diluted EPS	$2.60	$2.43	$1.55	+7.0%	+67.7%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	Q2 FY2026	Q1 FY2026	Q2 FY2025	On the quarter	On the year
Operating cash flow	723	532	221	+35.9%	+227.1%
Capital expenditure	116	105	71.0	+10.5%	+63.4%
Free cash flow	607	427	150	+42.2%	+304.7%
Free cash flow margin	21.5%	16.2%	6.5%
Cash from investing	-116	-90.0	-70.0
Cash from financing	-673	-221	-152
Depreciation and amortisation	68.0	72.0	63.0	-5.6%	+7.9%
Share-based compensation	53.0	52.0	49.0	+1.9%	+8.2%
Buybacks	0.0	29.0	0.0
Dividends paid	154	153	148	+0.7%	+4.1%
Dividend per share	$0.74	$0.72	$0.72	+2.8%	+2.8%
Diluted shares, weighted	228m	226m	217m	+0.9%	+5.1%
Shares outstanding at period end	218m	214m	212m	+2.1%	+3.0%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q2 FY2026	Q1 FY2026	Q2 FY2025	On the quarter	On the year
Shareholders' equity	459	-63.0	-1,079
Debt	4,546	5,046	5,729	-9.9%	-20.6%
Operating lease liabilities	305	n/a	n/a
Other liabilities	3,398	3,459	3,309	-1.8%	+2.7%
Total liabilities and equity	8,708	8,442	7,959	+3.2%	+9.4%
Fixed assets	1,771	1,688	1,595	+4.9%	+11.0%
Goodwill	1,221	1,221	1,219	0.0%	+0.2%
Cash and equivalents	1,046	1,112	1,238	-5.9%	-15.5%
Receivables	1,246	1,073	587	+16.1%	+112.3%
Inventory	1,498	1,496	1,473	+0.1%	+1.7%
Other assets	1,926	1,852	1,847	+4.0%	+4.3%
Total assets	8,708	8,442	7,959	+3.2%	+9.4%

Questions

What was Seagate Technology Holdings' revenue in Q2 FY2026?

Seagate Technology Holdings (STX) reported revenue of $2.8 billion for Q2 FY2026, the quarter ended 2 January 2026, up 21.5% on the same quarter a year earlier.

How much did Seagate Technology Holdings earn in Q2 FY2026?

Net income for Q2 FY2026 was $593 million, up 76.5% on the year, and diluted earnings per share $2.60.

When did Seagate Technology Holdings report Q2 FY2026 results?

Seagate Technology Holdings filed its 10-Q for the quarter ended 2 January 2026 with the SEC on 30 January 2026.

Quarterly results, the last 20 quarters

	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026	Q4 FY2026 *	Q1 FY2027
Revenue	3,116	2,802	2,628	2,035	1,887	1,860	1,602	1,454	1,555	1,655	1,887	2,168	2,325	2,160	2,444	2,629	2,825	3,112	3,629	4,233
Cost of revenue	2,168	1,996	1,869	1,553	1,641	1,541	1,298	1,305	1,193	1,230	1,287	1,454	1,513	1,400	1,530	1,592	1,649	1,665	1,731	1,806
Gross profit	948	806	759	482	246	319	304	149	362	425	600	714	812	760	914	1,037	1,176	1,447	1,898	2,427
Gross margin	30%	29%	29%	24%	13%	17%	19%	10%	23%	26%	32%	33%	35%	35%	37%	39%	42%	46%	52%	57%
R&D	228	233	247	234	200	191	172	171	161	164	158	181	184	180	179	186	187	194	188	200
SG&A	136	141	149	129	125	123	114	105	108	116	131	129	139	139	154	144	143	143	147	159
Operating income	580	429	360	107	-160	-315	26.0	-129	124	143	314	403	488	431	568	694	843	998	1,559	2,064
Operating margin	19%	15%	14%	5%	-8%	-17%	2%	-9%	8%	9%	17%	19%	21%	20%	23%	26%	30%	32%	43%	49%
Interest expense	62.0	63.0	65.0	71.0	77.0	81.0	84.0	84.0	84.0	82.0	82.0	85.0	84.0	77.0	75.0	80.0	72.0	68.0	64.0	41.0
Pre-tax income	514	351	281	27.0	-38.0	-400	-85.0	-147	-4.0	58.0	538	316	350	355	492	614	707	864	1,505	1,982
Tax rate	3%	1%	2%	-7%	n/a	n/a	n/a	n/a	n/a	57%	5%	3%	4%	4%	1%	11%	16%	13%	14%	11%
Net income	501	346	276	29.0	-33.0	-433	-92.0	-184	-19.0	25.0	513	305	336	340	488	549	593	748	1,294	1,761
Net margin	16%	12%	11%	1%	-2%	-23%	-6%	-13%	-1%	2%	27%	14%	14%	16%	20%	21%	21%	24%	36%	42%
Diluted EPS	$2.23	$1.56	$1.29	$0.14	-$0.16	-$2.09	-$0.44	-$0.88	-$0.09	$0.12	$2.39	$1.41	$1.55	$1.57	$2.24	$2.43	$2.60	$3.27	$5.58	$7.59
Operating cash flow	521	460	180	245	251	228	218	127	169	188	434	95.0	221	259	508	532	723	1,114	1,305	1,690
Capital expenditure	95.0	97.0	72.0	133	79.0	54.0	50.0	70.0	70.0	60.0	54.0	68.0	71.0	43.0	83.0	105	116	161	187	211
Free cash flow	426	363	108	112	172	174	168	57.0	99.0	128	380	27.0	150	216	425	427	607	953	1,118	1,479
Buybacks	471	417	486	408	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	29.0	0.0	30.0	117	400
Dividends paid	151	154	152	147	145	145	145	145	146	147	147	147	148	152	153	153	154	161	166	168
Shares outstanding	219m	216m	210m	206m	206m	207m	207m	209m	210m	210m	210m	211m	212m	212m	213m	214m	218m	224m	227m	230m
Filing	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 2 January 2026, filed 30 January 2026: the filing.