Seagate Technology Holdings plc

June quarter revenue was $3.6 billion, up 17% sequentially and up 48% year over year. Non-GAAP EPS was $5.71, up 39% quarter over quarter and 121% year over year. Non-GAAP gross margin was 52.7%, up 570 basis points sequentially, and non-GAAP operating margin was 44.6%, up 710 basis points sequentially. Free cash flow was more than $1.1 billion, with a 31% margin, and fiscal 2026 free cash flow was $3.1 billion. For the September quarter, Seagate guided revenue to $4.1 billion plus or minus $100 million, non-GAAP EPS to $7.30 plus or minus $0.20, non-GAAP operating expenses to about $300 million, and non-GAAP operating margin to around 50%.

Dave Mosley framed the quarter as a strong finish to an outstanding fiscal 2026 and emphasized three pillars: durable demand, the HAMR-based Mozaic roadmap, and disciplined execution. He said demand for mass-capacity storage is strong and growing, that cloud remains the biggest driver, and that AI is reinforcing long-term storage needs through training, inference, agentic applications and physical AI. His tone was confident and constructive, with repeated comments that Seagate expects fiscal 2027 revenue growth to outpace fiscal 2026 and that momentum should continue through the year.

Gianluca Romano highlighted the financial upside in the quarter, including $3.6 billion of revenue, 52.7% gross margin, 44.6% operating margin and $5.71 of non-GAAP EPS. He pointed to $187 million of CapEx in the June quarter, said fiscal 2026 CapEx was 4.7% of revenue, and reiterated a fiscal 2027 CapEx target of 4% to 6% of revenue. On the balance sheet, he said cash and cash equivalents were $1.7 billion, liquidity was $3 billion, gross debt was $3.6 billion exiting fiscal 2026, down $1.4 billion year over year, and net leverage improved to 0.4x; he also noted plans to retire another $1.2 billion of debt in the September quarter.

Analysts focused on gross margin, pricing, HAMR adoption, exabyte growth sustainability and the mix between hyperscale, neocloud and enterprise demand. Management said the strong September pricing reflects a wider supply-demand gap and some favorable contract roll-offs, but stressed the pricing strategy itself has not changed; they also said the business remains predictable through FY27 because orders are secured ahead of production. On HAMR, management said they hit the 40% nearline exabyte milestone and are on track for the next milestones, while emphasizing that the mix shift and product transitions, not unit growth, are what drive the investment and complexity.