Seagate Technology Reports Record Earnings for Q2 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 28 2026
0mins
Source: seekingalpha
- Record Financial Performance: Seagate reported $2.83 billion in revenue for the December quarter, reflecting a 7% sequential and 22% year-over-year increase, exceeding market expectations and setting new company records, highlighting robust data center demand trends.
- Margin Improvement: Non-GAAP gross margin reached 42.2%, up 210 basis points sequentially, while non-GAAP operating margin rose to 31.9%, indicating effective execution of pricing strategies and high-capacity drive sales, thereby enhancing profitability.
- Strong Cash Flow: Free cash flow generation hit $607 million, a 42% increase from the prior quarter, alongside the successful retirement of $500 million in debt, resulting in a net leverage ratio improvement to 1.1x, showcasing ongoing financial health and capital discipline.
- Optimistic Outlook: Management anticipates March quarter revenue to be around $2.9 billion, representing a 34% year-over-year growth, and plans to begin accepting orders for the first half of 2027 in the coming months, reflecting strong confidence in future demand.
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Analyst Views on STX
Wall Street analysts forecast STX stock price to fall
18 Analyst Rating
14 Buy
3 Hold
1 Sell
Moderate Buy
Current: 925.990
Low
150.00
Averages
310.39
High
465.00
Current: 925.990
Low
150.00
Averages
310.39
High
465.00
About STX
Seagate Technology Holdings plc provides mass-data storage infrastructure solution. The Company’s principal products are hard disk drives, commonly referred to as disk drives, hard drives (HDDs). In addition to HDDs, the Company produces a range of data storage products, including solid state drives (SSDs), solid state hybrid drives, storage subsystems, as well as a scalable edge-to-cloud mass data platform. Its HDD products are designed for mass capacity storage and legacy markets. Mass capacity storage involves use cases, such as hyperscale data centers and public clouds, as well as emerging use cases. The Company’s HDD and SSD product portfolio includes Serial Advanced Technology Attachment, Serial Attached SCSI and Non-Volatile Memory Express based designs to support a variety of mass capacity and legacy applications. Its systems portfolio includes storage subsystems for enterprises, cloud service providers, scale-out storage servers and original equipment manufacturers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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