Seagate Technology reported fiscal fourth-quarter 2026 results on 2026-07-28 that exceeded Wall Street expectations. Revenue climbed 48% year over year to $3.63 billion against estimates near $3.5 billion, while non-GAAP earnings per share of $5.71 beat the $5.10 consensus. CEO Dave Mosley attributed the performance to robust cloud data center demand and disciplined execution. The results arrived as investors had soured on AI infrastructure valuations, with Seagate's shares sliding roughly 8% into Tuesday's print before the earnings release reversed sentiment overnight.
Seagate Reports 48% Revenue Growth and 52.7% Gross Margin in Fiscal Q4 2026
Seagate's fiscal fourth-quarter revenue of $3.63 billion represented a 48% increase from the prior year, surpassing Wall Street's estimate near $3.5 billion. Non-GAAP earnings per share came in at $5.71, well above the $5.10 analysts expected. Non-GAAP gross margin jumped to 52.7% from 37.9% a year earlier, indicating the company is generating far more profit on each drive sold. For the full fiscal year, Seagate recorded a record $3.1 billion in free cash flow, capital the company can deploy to pay down debt, reward shareholders, or reinvest in AI storage infrastructure.
Seagate Guides $4.1 Billion Revenue for Next Quarter
Management issued guidance for the next quarter projecting $4.1 billion in revenue, exceeding analyst estimates near $3.8 billion. CEO Dave Mosley stated in the earnings release that "our performance is being driven by robust cloud data center demand and disciplined execution, and we see the momentum continuing in 2027." The forward guidance represents a sequential increase from the fiscal fourth-quarter result and maintains the company's growth trajectory into the new fiscal year.
Cloud Data Center Demand Drives Record $3.1 Billion Free Cash Flow
Seagate credited durable cloud demand for its fiscal 2026 performance, which culminated in $3.1 billion in free cash flow—a record for the company. The results contrast with recent volatility in memory chip stocks, where concerns about overheated AI buildout have pressured valuations even as companies announce new deals. Seagate's fiscal fourth-quarter beat demonstrates underlying demand for AI-driven data storage remains intact despite sentiment shifts around AI infrastructure equities.
FAQ
What did Seagate report for fiscal Q4 2026?
Seagate reported fiscal fourth-quarter 2026 revenue of $3.63 billion, up 48% year over year, and non-GAAP earnings per share of $5.71. Both figures exceeded Wall Street estimates of approximately $3.5 billion in revenue and $5.10 in EPS. The company also posted a non-GAAP gross margin of 52.7%, compared to 37.9% in the prior year.
Why did Seagate's gross margin improve to 52.7%?
Seagate's non-GAAP gross margin increased to 52.7% from 37.9% a year earlier, reflecting higher profitability per drive sold. CEO Dave Mosley attributed the performance to robust cloud data center demand and disciplined execution, indicating the company is capturing stronger pricing or cost efficiencies in its AI storage business.
What is Seagate's revenue guidance for the next quarter?
Seagate issued guidance for the next quarter of $4.1 billion in revenue, above analyst estimates near $3.8 billion. The guidance represents a sequential increase from the fiscal fourth-quarter result of $3.63 billion and suggests management expects continued momentum in cloud data center demand into fiscal 2027.
