Seagate Technology Reports Strong Q1 2027 Results Driven by Data Center Demand
Seagate Technology Holdings plc (STX) reported robust first-quarter fiscal 2027 results, highlighted by a 61% year-over-year revenue increase to $4.2 billion. This growth was primarily fueled by massive demand in the data center segment, which accounted for 81% of total quarterly revenue ($3.4 billion). The company's transition toward Heat-Assisted Magnetic Recording (HAMR) technology and the ramp-up of Mozaic 4 products contributed to record gross margins of 57.8%. Following significant debt reduction, including $1.2 billion in principal debt retired this quarter, management is shifting its capital allocation strategy toward shareholder returns through dividends and share repurchases. Looking ahead, Seagate provided optimistic second-quarter guidance with revenue expected to reach approximately $4.8 billion, supported by continued momentum in AI-driven persistent data storage workloads.
Tickers: $STX
Topics: data center demand dividend increase financial guidance margin expansion revenue growth