01—Abstract
Summary
Summary of the 10-K filed August 1, 2025. Cited figures are marked; the original filing is the authoritative source.
Seagate Technology Holdings plc reported a strong fiscal year 2025, with revenue increasing by 39% to $9.1 billiona, driven primarily by robust demand for its high-capacity nearline hard disk drives (HDDs) from cloud customers and favorable pricing.
This growth translated into a significant improvement in profitability, with net income reaching $1.5 billionb, a substantial increase from the previous year. The company highlighted its strategic focus on mass capacity storage, particularly for cloud and edge applications, and its ongoing investment in advanced technologies like HAMR (Heat-Assisted Magnetic Recording) to increase HDD capacities.
Seagate's vertically integrated manufacturing approach, coupled with its commitment to R&D, positions it to capitalize on the expanding data storage market, fueled by trends like Artificial Intelligence and the Internet of Things. Despite macroeconomic uncertainties and geopolitical tensions, Seagate demonstrated resilience and a healthy pricing environment for its core HDD products.
02—Key points
Key Highlights
- Revenue surged by 39% to $9.1 billion in fiscal year 2025, driven by strong demand in mass capacity storage and favorable pricing.
- Net income reached $1.5 billion, a significant increase from $335 million in fiscal year 2024, reflecting improved profitability.
- Gross margin expanded significantly to 35% from 23% in the prior year, aided by a favorable product mix and pricing.
- The company shipped 595 exabytes of HDD storage capacity, a substantial increase from 398 exabytes in fiscal year 2024, demonstrating strong market penetration.
- Seagate successfully managed its debt, repaying substantial principal amounts of its senior notes and maintaining compliance with its credit facility covenants.
- The company acquired Intevac, Inc., a thin-film processing systems supplier, for $47 million to enhance its manufacturing integration capabilities.
- Seagate continues to invest in R&D, notably in HAMR technology, to drive higher capacity and maintain its leadership in mass capacity storage solutions.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Seagate Technology Holdings plc kept $0.16.
- Revenue$9.10B100.0%
- Cost of revenue−$5.90B64.8%
- Gross profit$3.20B35.2%
- Operating costs−$1.31B14.4%
- Operating income$1.89B20.8%
- Interest, other & tax−$421.0M4.6%
- Net income$1.47B16.1%
Where FY2025 revenue went
$9.10B- Cost of revenue: $5.90B, 65% of revenue
- Net income: $1.47B, 16% of revenue
- R&D: $724.0M, 8.0% of revenue
- SG&A: $561.0M, 6.2% of revenue
- Interest, other & tax: $421.0M, 4.6% of revenue
Kept 16% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed August 1, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $9.10B$6.55B | +38.9% |
| Cost of Revenue | $5.90B$5.01B | +17.6% |
| Gross Profit | $3.20B$1.54B | +108.3% |
| R&D Expenses | $724.00M$654.00M | +10.7% |
| SG&A Expenses | $561.00M$460.00M | +22.0% |
| Operating Expenses | $7.21B$6.10B | +18.2% |
| Operating Income | $1.89B$452.00M | +318.1% |
| Net Income | $1.47B$335.00M | +338.5% |
| EPS (Basic) | $6.93$1.60 | +333.1% |
| EPS (Diluted) | $6.77$1.58 | +328.5% |
| Shares Outstanding (Basic) | 212.00M209.00M | +1.4% |
| Shares Outstanding (Diluted) | 217.00M212.00M | +2.4% |
05—Questions
Frequently Asked Questions
What were the main drivers of Seagate's revenue growth in fiscal year 2025?
Seagate's revenue grew by 39% to $9.1 billion in fiscal year 2025, primarily driven by a significant increase in demand for its high-capacity nearline hard disk drives (HDDs) from cloud customers. Favorable pricing actions and an increase in mass capacity exabytes shipped also contributed to this growth.
How did Seagate's profitability improve in fiscal year 2025?
Seagate's net income increased substantially to $1.5 billion in fiscal year 2025, up from $335 million in the prior year. This improvement was largely due to a significant expansion in gross margin to 35% (from 23%), driven by a more favorable product mix, improved pricing, and a reduction in certain charges like factory underutilization and purchase order cancellation fees.
What is Seagate's strategy regarding technological advancements in storage?
Seagate is focused on leveraging its areal density leadership in mass capacity HDDs through advanced technologies like HAMR (Heat-Assisted Magnetic Recording) with its Mozaic platform, and multi-actuator MACH.2 technology to achieve higher capacities. The company also offers SSDs and integrated storage subsystems, and is investing in its Lyve edge-to-cloud mass data platform to manage distributed data.
How is Seagate managing its debt and capital resources?
In fiscal year 2025, Seagate repaid approximately $1.1 billion in principal of its senior notes and $479 million of its 2025 Notes and $505 million of its 2027 Notes. The company also issued $400 million in new debt. As of June 27, 2025, Seagate had $891 million in cash and cash equivalents and $1.3 billion available under its revolving credit facility, and was in compliance with its debt covenants. The company continues to evaluate its debt portfolio and generate cash flow from operations to fund its liquidity requirements.
06—Continue