What is Seagate's outlook for the September 2025 quarter?

Management guided revenue to $2.5B plus or minus $150M, about 15% year-over-year growth at the midpoint. Non-GAAP operating expenses are expected to be about $290M, and non-GAAP operating margin is expected to be in the mid-to-high twenties. Non-GAAP EPS is guided to $2.30 plus or minus $0.20, based on a 16% tax rate and 221 million diluted shares. The quarter has 14 weeks, and the guidance assumes a global minimum tax rate in the mid-teens starting in fiscal 2026.

What is driving demand, and how much visibility does Seagate have?

Demand is driven by cloud data center nearline drives, including high-capacity PMR drives at 24 to 28 TB. Build-to-order contracts give visibility, and management said nearline exabyte capacity is largely spoken for through the middle of calendar 2026, with visibility building into the second half. Three major cloud providers are qualified on Mozaic HAMR products, and key global CSP qualifications are expected by mid-calendar 2026. Enterprise/OEM nearline demand improved modestly and is expected to be stable.

What are the capital return plans and balance sheet position?

Seagate returned $153M through dividends in the June quarter and nearly 75% of fiscal 2025 free cash flow overall. Management plans to resume share repurchases in the September quarter, partly to offset dilution from its 2028 convertible notes, which dilute non-GAAP EPS when the stock trades above about $108. Net leverage is 1.8x, gross debt is about $5B, and liquidity is $2.2B. Capital expenditures were $265M in fiscal 2025 (about 3% of revenue), and fiscal 2026 capex is expected to be within a 4 to 6% of revenue target range.

What are the main technology roadmap milestones and risks investors should watch?

Key milestones include ramping HAMR-based Mozaic 3+ products with shipments expanding to additional CSPs in the September quarter, starting volume ramp of the 4-plus TB per disk platform in the first half of calendar 2026, and targeting exabyte shipment crossover for HAMR nearline drives in the second half of calendar 2026. The company targets 5 TB per disk in early calendar 2028 and expects to demonstrate 10 TB per disk in the lab at that time. Management said minimal tariff impact is expected but is monitoring trade policy. The filing itself notes the webcast was unreliable for part of the call, so the transcript and replay are the primary records.

STX 8-K: Earnings & Results & Regulation FD

Q: What were Seagate's key financial results for the June 2025 quarter and fiscal 2025?

The June quarter produced revenue of $2.44B, up 30% year over year and 13% sequentially. Non-GAAP gross margin was a record 37.9%, non-GAAP operating margin was 26.2%, and non-GAAP EPS was $2.59. For fiscal 2025, revenue rose nearly 40% to $9.1B, non-GAAP operating profit was $2.1B, and non-GAAP EPS was $8.10.

01—Abstract

Summary

Summary of the 8-K filed July 30, 2025. Cited figures are marked; the original filing is the authoritative source.

Seagate Technology Holdings plc filed this 8-K to furnish the prepared remarks from its fiscal fourth quarter and fiscal year 2025 earnings call, held July 29, 2025.

The filing contains no financial statements itself. The figures below come from the transcript. A technical problem interrupted the live webcast for part of the call, so the company also points to a replay on its Investor Relations site.

The June quarter was strong: revenue was $2.44 billion^a, up 30% year over year and 13% sequentially. Non-GAAP gross margin reached a record 37.9%, non-GAAP operating margin was 26.2%, and non-GAAP EPS was $2.59, at the high end of guidance. For the full fiscal year, revenue rose nearly 40% to $9.1 billion, non-GAAP operating profit was $2.1 billion, and non-GAAP EPS was $8.10.

Nearline demand from cloud customers drove results, and management said nearline exabyte capacity is largely committed through mid-calendar 2026 under build-to-order contracts. Management guided the September quarter, a 14-week period, to revenue of $2.5 billion^b plus or minus $150 million, which implies about 15% year-over-year growth at the midpoint. Non-GAAP EPS is guided to $2.30 plus or minus $0.20, on a 16% tax rate and 221 million diluted shares.

The company expects non-GAAP operating margin in the mid-to-high twenties. Management also plans to resume share repurchases this quarter, partly to offset dilution from its 2028 convertible notes. Balance sheet metrics improved, with net leverage at 1.8 times, gross debt of about $5 billion^c, and liquidity of $2.2 billion.

Free cash flow nearly doubled to $425 million^d in the June quarter. Roadmap milestones include ramping HAMR-based Mozaic 3+ products, qualifying 4-plus terabyte-per-disk drives with a volume ramp in the first half of calendar 2026, and targeting 5 terabytes per disk in early 2028. Management expects minimal tariff impact at present, though it is monitoring trade policy closely.

02—Key points

Key Highlights

June quarter revenue of $2.44B rose 30% year over year and 13% sequentially. Mass capacity revenue topped $2.0B, up 40% year over year.
Record non-GAAP gross margin of 37.9%, up 170 basis points sequentially. Non-GAAP operating margin expanded 270 basis points to 26.2%. Gross margin has improved for nine consecutive quarters.
Non-GAAP EPS of $2.59 for the June quarter and $8.10 for fiscal 2025. Fiscal 2025 revenue rose nearly 40% to $9.1B, and non-GAAP operating profit reached $2.1B.
September quarter guidance of $2.5B plus or minus $150M in revenue (about 15% year-over-year growth at the midpoint) and non-GAAP EPS of $2.30 plus or minus $0.20.
Free cash flow nearly doubled to $425M in the June quarter. Shareholder returns totaled nearly 75% of fiscal 2025 free cash flow, and share repurchases are set to resume in the September quarter.
Balance sheet is strengthening: net leverage is 1.8x, gross debt is about $5B after roughly $150M of reduction in the quarter, and liquidity is $2.2B including a $1.3B undrawn revolver.
Build-to-order visibility indicates nearline exabyte capacity is largely committed through mid-calendar 2026. HAMR Mozaic 3+ shipments expand to more CSPs in the September quarter, and the 4-plus TB per disk platform is expected to ramp in the first half of calendar 2026.

03—Questions

Frequently Asked Questions

What were Seagate's key financial results for the June 2025 quarter and fiscal 2025?
The June quarter produced revenue of $2.44B, up 30% year over year and 13% sequentially. Non-GAAP gross margin was a record 37.9%, non-GAAP operating margin was 26.2%, and non-GAAP EPS was $2.59. For fiscal 2025, revenue rose nearly 40% to $9.1B, non-GAAP operating profit was $2.1B, and non-GAAP EPS was $8.10.
What is Seagate's outlook for the September 2025 quarter?
Management guided revenue to $2.5B plus or minus $150M, about 15% year-over-year growth at the midpoint. Non-GAAP operating expenses are expected to be about $290M, and non-GAAP operating margin is expected to be in the mid-to-high twenties. Non-GAAP EPS is guided to $2.30 plus or minus $0.20, based on a 16% tax rate and 221 million diluted shares. The quarter has 14 weeks, and the guidance assumes a global minimum tax rate in the mid-teens starting in fiscal 2026.
What is driving demand, and how much visibility does Seagate have?
Demand is driven by cloud data center nearline drives, including high-capacity PMR drives at 24 to 28 TB. Build-to-order contracts give visibility, and management said nearline exabyte capacity is largely spoken for through the middle of calendar 2026, with visibility building into the second half. Three major cloud providers are qualified on Mozaic HAMR products, and key global CSP qualifications are expected by mid-calendar 2026. Enterprise/OEM nearline demand improved modestly and is expected to be stable.
What are the capital return plans and balance sheet position?
Seagate returned $153M through dividends in the June quarter and nearly 75% of fiscal 2025 free cash flow overall. Management plans to resume share repurchases in the September quarter, partly to offset dilution from its 2028 convertible notes, which dilute non-GAAP EPS when the stock trades above about $108. Net leverage is 1.8x, gross debt is about $5B, and liquidity is $2.2B. Capital expenditures were $265M in fiscal 2025 (about 3% of revenue), and fiscal 2026 capex is expected to be within a 4 to 6% of revenue target range.
What are the main technology roadmap milestones and risks investors should watch?
Key milestones include ramping HAMR-based Mozaic 3+ products with shipments expanding to additional CSPs in the September quarter, starting volume ramp of the 4-plus TB per disk platform in the first half of calendar 2026, and targeting exabyte shipment crossover for HAMR nearline drives in the second half of calendar 2026. The company targets 5 TB per disk in early calendar 2028 and expects to demonstrate 10 TB per disk in the lab at that time. Management said minimal tariff impact is expected but is monitoring trade policy. The filing itself notes the webcast was unreliable for part of the call, so the transcript and replay are the primary records.

04—Continue

← View all 8-K filings