greeksoup/ stock research
Stock research / United States / STX / FY2026

Seagate Technology Holdings (STX) FY2026 results: revenue $12.2 billion, up 34.1% on the year

Seagate Technology Holdings plc (STX) reported revenue of $12.2 billion for fiscal 2026, the year ended 3 July 2026, up 34.1% on the year before. Net income was $3.2 billion, up 116.7%, and diluted earnings per share $13.90. The figures are the company's own, from the 10-K it filed with the SEC on 4 August 2026.

Revenue
$12.2 billion
+34.1% on the year
FY2019FY2026
Operating margin
33.6%
20.8% a year earlier
FY2019FY2026
Net income
$3.2 billion
+116.7% on the year
FY2019FY2026
Diluted EPS
$13.90
+105.3% on the year
FY2019FY2026

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 1 raised, 2 new.

  • Q4 revenue and gross margin: Fiscal Q4 revenue was $3.6 billion, against $2.4 billion a year earlier. GAAP gross margin was 52.3% and non-GAAP 52.7%, against 37.4% and 37.9% a year earlier.
  • Q4 earnings per share rose: GAAP diluted EPS was $5.58 against $2.24 a year earlier; non-GAAP diluted EPS was $5.71 against $2.59 a year earlier.
  • Operating margin rose year on year: Fiscal Q4 GAAP operating margin was 43.0% against 23.2%, and non-GAAP 44.6% against 26.2%. For fiscal 2026, GAAP was 33.6% against 20.8% and non-GAAP 36.5% against 23.4%.
  • Free cash flow in fourth quarter: Fiscal Q4 cash flow from operations was $1.3 billion and free cash flow $1.1 billion, against $508 million and $425 million a year earlier.
  • Debt reduced in quarter and year: Debt was reduced by $302 million in fiscal Q4 and $1.4 billion in fiscal 2026. Total debt at fiscal year end was $3.6 billion.
Read the Q4 FY2026 earnings call summary

From this 10-K

Seagate designs and manufactures hard disk drives, storage systems and related products, and the filing describes it as a leading provider of mass-capacity data storage with a portfolio built over nearly 50 years. Customers are hyperscalers, cloud service providers, enterprises and consumers. The company had approximately 30,000 full-time employees worldwide at 3 July 2026, about 25,000 of them in Asia. The financial year ends in early July.

Seagate Technology Holdings plc, the 10-K for 2026

Seagate designs and manufactures hard disk drives, storage systems and related products, and the filing describes it as a leading provider of mass-capacity data storage with a portfolio built over nearly 50 years. Customers are hyperscalers, cloud service providers, enterprises and consumers. The company had approximately 30,000 full-time employees worldwide at 3 July 2026, about 25,000 of them in Asia. The financial year ends in early July.

Two end markets

The products serve two end markets. Data Center covers cloud and enterprise environments that rely on scalable, high-capacity storage to support AI-enabled computing, business-critical applications and other data-intensive workloads. Edge and Internet of Things covers industrial and consumer environments where data is processed and stored closer to where it is created. The filing states that the vast majority of the business comes from the Data Center markets. Demand there moves with customer procurement and deployment schedules, IT spending and the timing of new technology deployments, and cloud demand in particular with the timing of hyperscale infrastructure investment. The Edge and IoT market, which includes Consumer Solutions, has historically been seasonal, with higher sales in the first half of the financial year, reflecting back-to-school and year-end holiday buying.

Why hard drives

The filing's case for the product is that hard drives remain a foundational technology for scalable, energy-efficient, mass-capacity storage with favourable storage economics, and that they support the vast majority of exabytes shipped into large data center deployments. It cites International Data Corporation for an expectation that the global datasphere grows at a compound annual rate of approximately 27 percent through 2030, to around 718 zettabytes annually, and argues that longer data retention, greater replication, evolving regulatory requirements and AI-enhanced applications all add to demand for mass-capacity storage.

The technology roadmap

The central engineering effort is areal density, meaning how much data fits on a disk's recording surface. The Mozaic platform carries the company's implementation of heat-assisted magnetic recording, alongside advanced magnetic recording with proprietary photonics, and the filing presents these as the route to higher densities and larger drive capacities without heavy capital cost. Sitting beside that are performance technologies for moving data faster as capacities grow, including multi-actuation, advanced channel coding and the processing of the recorded signals. Common technology platforms are used across the drive and storage systems portfolio to speed product development and improve manufacturing and supply chain efficiency.

Vertical integration and manufacturing

The company designs and manufactures many of the critical technologies inside its drives itself, including read/write heads and magnetic recording media, which the filing presents as the way it coordinates development, product design and manufacturing and moves through technology transitions faster. Strategic suppliers and contract manufacturers handle selected components and assembly operations. Component manufacturing, subassembly, and final test and assembly are carried out at facilities in China, Malaysia, Northern Ireland, Singapore, Thailand and the United States. Production needs commodities and specialty materials including certain rare earth elements, precious metals and specialised alloys, some of which come from a limited number of suppliers and may be subject to supply constraints or price volatility, so long-term supply arrangements are sometimes used. The business requires substantial capital investment and efficient use of manufacturing capacity.

Competition

Global competitors named in the filing are the hard drive makers Western Digital Corporation and Toshiba Electronics Devices & Storage Corporation, NAND flash suppliers that provide and enable alternative storage technologies, and storage systems and solutions providers.

From Seagate's annual report on Form 10-K for the year ended 3 July 2026. The filing

Written from the 10-K filed 4 August 2026: read the full 10-K.

The four quarters: Q1 FY2026 · Q2 FY2026 · Q3 FY2026 · Q4 FY2026

Income statement (profit and loss)

$ millionFY2026FY2025FY2024On the yearLast 8 years
Revenue12,1959,0976,551+34.1%
Cost of revenue6,6375,8975,015+12.5%
Gross profit5,5583,2001,536+73.7%
Gross margin45.6%35.2%23.4%
Research and development755724654+4.3%
Selling, general and administrative577561460+2.9%
Operating income4,0941,890452+116.6%
Operating margin33.6%20.8%6.9%
Interest expense284321332-11.5%
Pre-tax income3,6901,513445+143.9%
Income tax50644.0110+1,050.0%
Effective tax rate13.7%2.9%24.7%
Net income3,1841,469335+116.7%
Net margin26.1%16.1%5.1%
Diluted EPS$13.90$6.77$1.58+105.3%
$ million except per share.
Read moreFree 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

$ millionFY2026FY2025FY2024On the yearLast 8 years
Operating cash flow3,6741,083918+239.2%
Capital expenditure569265254+114.7%
Free cash flow3,105818664+279.6%
Free cash flow margin25.5%9.0%10.1%
Cash from investing-525-276126
Cash from financing-2,337-1,274-473
Depreciation and amortisation276251264+10.0%
Share-based compensation213200127+6.5%
Buybacks1760.00.0
Dividends paid634600585+5.7%
Dividend per share$2.94$2.86$2.80+2.8%
Diluted shares, weighted229m217m212m+5.5%
Shares outstanding at period end227m213m210m+6.6%

Balance sheet

$ millionFY2026FY2025FY2024On the yearLast 8 years
Shareholders' equity2,167-453-1,491
Debt3,6035,0465,729-28.6%
Operating lease liabilities293317338-7.6%
Other liabilities3,9093,1133,163+25.6%
Total liabilities and equity9,9728,0237,739+24.3%
Fixed assets2,0341,6571,614+22.8%
Goodwill1,2211,2211,2190.0%
Cash and equivalents1,7048911,358+91.2%
Receivables1,534959429+60.0%
Inventory1,5711,4401,239+9.1%
Other assets1,9081,8551,880+2.9%
Total assets9,9728,0237,739+24.3%

10-K for the year ended 3 July 2026, filed 4 August 2026: the filing.