Seagate Technology Reports Strong Q4 Earnings Driven by Data Center Demand
Seagate Technology (NASDAQ:STX) reported fiscal fourth-quarter results that exceeded expectations, with revenue reaching $3.6 billion—up 48% year over year—and non-GAAP earnings per share of $5.71, a 121% increase from the prior year. The company's profitability improved significantly, with gross margin expanding to 52.7% and operating margin hitting 44.6%. Growth was primarily driven by strong demand in data center storage, particularly for cloud computing and AI workloads. Data center revenue rose 57% year over year to $2.9 billion, representing a significant portion of Seagate's total shipments. The company also noted the increasing adoption of HAMR (heat-assisted magnetic recording) technology, which now accounts for about 40% of nearline exabyte shipments and is being ramped up by major cloud customers. Looking ahead, management expects continued momentum in fiscal 2027 with revenue growth surpassing last year's 34%. Seagate forecast $4.1 billion in September-quarter revenue and EPS of $7.30. The company also plans to reduce debt following record free cash flow generation.
Tickers: $STX
Topics: ai_workloads data_center_demand financial_performance storage