Seagate Sets Fiscal Second-Quarter 2027 Revenue Outlook

The Tip Desk · October 30, 2026 · 3 min read

The storage maker guided fiscal second-quarter 2027 revenue to $4.8 billion, plus or minus $100 million, after a $4.23 billion September quarter.

Seagate Technology Holdings plc (STX) guided fiscal second-quarter 2027 revenue to $4.8 billion, plus or minus $100 million, and non-GAAP diluted earnings of $9.20 a share, plus or minus $0.20, after a September quarter in which sales reached $4.23 billion.

The mass-capacity data storage company said the non-GAAP diluted earnings guidance excludes known pre-tax charges related to estimated share-based compensation of $0.30 a share.

Revenue rose to $4.233 billion from $3.629 billion in the prior quarter, after a $517 million sequential increase from $3.112 billion two quarters earlier. GAAP diluted earnings were $7.59 a share, compared with $5.58 a share in the fiscal fourth quarter. Non-GAAP diluted earnings were $7.68 a share.

Chair and chief executive Dave Mosley said Seagate delivered another quarter of record profitability and its highest-ever free cash flow in the September quarter, and that data creation, retention and reuse continue to compound storage demand. He said long-term customer demand visibility reinforces the company’s view of a multi-year growth phase, and that the HAMR-based technology roadmap is intended to address growing exabyte demand through areal density gains while maintaining supply discipline.

GAAP gross margin expanded to 57.3% from 52.3% in the fiscal fourth quarter. Non-GAAP gross margin was 57.8%. GAAP operating margin was 48.8%; non-GAAP operating margin was 50.7%. GAAP net income was $1.761 billion.

Cash flow from operations was $1.7 billion, and free cash flow was $1.5 billion. The company retired about $1.2 billion of principal debt in the quarter, lowering gross debt to $2.4 billion, and returned $568 million to shareholders through dividends and share repurchases. Cash and cash equivalents totaled $1.3 billion at quarter-end, with 230 million ordinary shares outstanding. Subsequent to the quarter, Seagate retired an additional $750 million of principal debt, bringing gross debt to $1.6 billion.

The board declared a quarterly cash dividend of $0.76 a share, payable January 7, 2027, to shareholders of record as of December 23, 2026.

Income from operations was $2.064 billion. Interest expense was $41 million, and net loss from debt transactions was $44 million. The provision for income taxes was $221 million. Accounts receivable, net, were $1.817 billion at October 2, 2026, and inventories, net, were $1.700 billion.

For the three months ended October 2, 2026, GAAP net income was $1.761 billion, up from $549 million a year earlier. Diluted shares used in the GAAP calculation were 232 million. Non-GAAP net income was $1.781 billion. Free cash flow of $1.479 billion compared with $427 million a year earlier.

Mosley said combined with a value-based pricing strategy and a strengthened balance sheet, Seagate can deliver profitable growth, strong cash generation and increased shareholder returns over the long term. The company said actual second-quarter results may differ materially from the outlook.