Seagate Technology saw its fiscal 2026 revenue jump 34% to $12.2 billion, driven by booming demand from cloud data centers. The company’s fourth-quarter revenue hit $3.63 billion, a sharp rise from $2.44 billion the previous year. Margins expanded significantly as the firm optimized its product mix and pricing power.
Gross margins reached 52.3% on a GAAP basis and 52.7% non-GAAP. Earnings per share more than doubled, with GAAP diluted earnings at $5.58 and non-GAAP at $5.71, compared to just $2.59 last fiscal year. Quarterly net income climbed to $1.29 billion, up from $488 million a year earlier. Over the full year, GAAP net income more than doubled to $3.18 billion and non-GAAP net income rose to $3.54 billion, reflecting strong execution in shipping high-capacity drives popular in cloud infrastructure.
Seagate’s cash flow also hit record levels, generating $1.1 billion in free cash flow during the quarter and $3.1 billion for the full year. This solid cash generation allowed the company to pay down $1.4 billion in debt throughout fiscal 2026 and return $810 million to shareholders through dividends and buybacks. The board declared a $0.74 quarterly dividend, payable in October 2026.
Shares of Seagate recovered from an early dip to close up 2.77% at $76.80, reflecting investor confidence in the company’s outlook amid sustained cloud data center growth.
This material is for informational purposes only and is not financial advice.
