TLDR
- Seagate fiscal 2026 revenue rose 34% to $12.2 billion on strong cloud demand.
- Fourth-quarter revenue reached $3.6 billion as profit margins expanded sharply.
- Free cash flow hit a record $3.1 billion as annual earnings more than doubled.
- Seagate cut $1.4 billion in debt and returned $810 million to its shareholders.
- STX shares gained 2.77% to $768 as strong results supported the 2027 outlook.
Seagate Technology (STX) shares rose 2.77% to $768.00 after recovering from a sharp morning decline by midday. The storage company reported $12.2 billion in fiscal 2026 revenue, marking 34% annual growth. Strong cloud data center demand and tighter execution lifted profitability, cash generation, and shareholder returns.
Seagate Technology Holdings plc, STX
Seagate Delivers Record Fiscal 2026 Profitability
Seagate generated $3.63 billion in fourth-quarter revenue, up sharply from $2.44 billion one year earlier. GAAP gross margin reached 52.3%, while non-GAAP gross margin improved to 52.7%. The company also posted GAAP diluted earnings of $5.58 per share during the quarter.
Non-GAAP diluted earnings reached $5.71 per share, compared with $2.59 in fiscal 2025. Quarterly GAAP net income climbed to $1.29 billion from $488 million a year earlier. Stronger pricing and product demand also lifted non-GAAP net income to $1.32 billion.
For fiscal 2026, GAAP net income reached $3.18 billion, more than doubling from $1.47 billion. Non-GAAP net income increased to $3.54 billion, while diluted earnings reached $15.58 per share. Annual operating margins also expanded as Seagate shipped more high-capacity products into major cloud infrastructure deployments.
Cash Flow Strengthens Balance Sheet and Returns
Seagate produced $1.3 billion in quarterly operating cash flow and $1.1 billion in free cash flow. Full-year operating cash flow reached $3.7 billion, while free cash flow climbed to a record $3.1 billion. These results gave the company greater flexibility to reduce debt and return capital to shareholders.
The company retired $302 million in debt during the fourth quarter and $1.4 billion throughout fiscal 2026. Seagate ended the year with $3.6 billion in total debt and $1.7 billion in cash. It also returned $810 million through dividends and share repurchases during the full fiscal year.
The board declared a quarterly dividend of $0.74 per share, payable on October 7, 2026. Seagate will pay shareholders of record as of September 24, 2026, under the announced schedule. Future dividend decisions will depend on cash flow, capital needs, operating performance, and overall financial conditions.
Cloud Demand Supports Seagate’s 2027 Outlook
Management linked the strong results to rising cloud storage requirements and disciplined operational execution across the business. Seagate expects data growth to support durable demand for mass-capacity storage during fiscal 2027. The company plans to meet that demand through its Mozaic platform and expanding HAMR technology roadmap.
Seagate’s fourth-quarter revenue exceeded internal expectations, while non-GAAP earnings also finished above company forecasts. The results completed a year of stronger revenue, record profitability, and improved cash generation. Higher exabyte demand now supports continued growth across cloud data centers and other large-scale storage markets.
Seagate enters fiscal 2027 with stronger margins, lower debt, and substantial free cash flow. Its cloud exposure provides a direct link to expanding data creation and infrastructure spending. However, the company will still need consistent execution to sustain its current earnings and cash flow momentum.
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