Companies /Technology

Seagate Technology Holdings Plc

NASDAQ: STX Computer Hardware
$808.54
▼ $8.10 (−0.99%) today
Markets closed · 5:51pm ET

Q1 2026 Earnings

Reported Oct 28, 2025, 4:07pm ET · SEC source
$2.61
Beat +8.75%
EPS · est. $2.40
$2.6B
Beat +3.06%
Revenue · est. $2.6B
+2.7%
Beating market
STX vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+6%+12%+18%Oct 28Oct 29report 4:07pm ETearnings+0.0%+18.3%
0+6%+12%+18%Oct 28Oct 29earnings+0.0%+18.3%
STX +18.3%S&P 500 +0.0%
0+6%+12%+18%Oct 28Oct 29report 4:07pm ETearnings+0.3%+18.3%
0+6%+12%+18%Oct 28Oct 29earnings+0.3%+18.3%
STX +18.3%NASDAQ +0.3%
0+8%+16%+24%Oct 27Nov 5report 4:07pm ETearnings−1.4%+18.9%
0+8%+16%+24%Oct 27Nov 5earnings−1.4%+18.9%
STX +18.9%S&P 500 −1.4%
0+8%+16%+24%Oct 27Nov 5report 4:07pm ETearnings−1.6%+18.9%
0+8%+16%+24%Oct 27Nov 5earnings−1.6%+18.9%
STX +18.9%NASDAQ −1.6%
+19.11%
Day of report
+1.02%
Next session
+3.82%
One week
+1.69%
30 days

S&P 500 over the same 30 days: −1.04%.

Did STX Beat Earnings? Q1 2026 Results

Seagate Technology delivered a convincing beat across the board in fiscal Q1 2026, as surging demand for high-capacity storage powered revenue of $2.63 billion, up 21.3% year over year and ahead of the $2.55 billion consensus by 3.06%, while non-GAAP diluted EPS of $2.61 topped the $2.40 analyst estimate by 8.75%. The headline driver was accelerating adoption of Seagate's Mozaic HAMR technology, now qualified with five of the world's largest cloud customers, which helped lift non-GAAP gross margin to a record 40.1% from 33.3% a year ago and expand non-GAAP operating margin to 29.0% from 20.4%. Free cash flow swelled to $427.00 million from just $27.00 million in the year-ago quarter, underscoring the improving profitability of the ramp. The strong results prompted at least one Wall Street firm to raise its price target on the stock to $400. Looking ahead, Seagate guided fiscal Q2 2026 revenue of $2.70 billion and non-GAAP EPS of $2.75, citing sustained visibility into demand from both cloud infrastructure and emerging AI workloads.

Key Takeaways
  • 21% year-over-year revenue growth driven by robust demand for high-capacity storage products
  • Non-GAAP EPS exceeded the high end of guided range
  • Record GAAP gross margin of 39.4% and non-GAAP gross margin of 40.1%
  • Strong execution in ramping Mozaic HAMR products for cloud customers
  • AI-driven content consumption and generation increasing value of data and storage

“Seagate delivered strong September quarter results, with revenue growth of 21% year-over-year and non-GAAP EPS exceeding the high end of our guided range. Our performance underscores the team's strong execution and robust customer demand for our high-capacity storage products.”

Seagate Technology CEO, on the earnings call

Forward Guidance & Outlook

For fiscal Q2 2026, Seagate guided revenue of $2.70 billion, plus or minus $100 million, and non-GAAP diluted EPS of $2.75, plus or minus $0.20. Guidance includes estimated impact from the Pillar Two global minimum tax framework effective in FY2026, the estimated net dilutive impact from Exchangeable Senior Notes due 2028, and minimal expected impact from global tariff policies announced as of the release date. The company cited clear visibility into sustained demand strength and is ramping shipments of Mozaic HAMR products qualified with five of the world's largest cloud customers.

STX YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$800.0M$1.6B$2.4B$2.2B$2.6BRevenue$714.0M$1.0BGross Profit$403.0M$694.0MOperating Income$305.0M$549.0MNet Income
$0$800.0M$1.6B$2.4BRevenueGross ProfitOperating IncomeNet Income

STX Revenue by Segment

Hard Drive
Mass Capacity
Legacy
Other

Figures from SEC filings and company reports. Not investment advice.