Investor Relations Contact:
carrie.schafer@seagate.com SEAGATE TECHNOLOGY REPORTS FISCAL FIRST QUARTER 2027 FINANCIAL RESULTS Fiscal Q1 2027 Highlights
▪ Retired $1.2 billion of debt and returned $568 million to shareholders through dividends and share repurchases
– October 28, 2026 - Seagate Technology Holdings plc (NASDAQ: STX) (the “Company” or “Seagate”), a leading innovator of mass-capacity data storage, today reported financial results for its fiscal first quarter ended October 2, 2026.
“Seagate delivered another quarter of record profitability and our highest ever free cash flow in the September quarter, demonstrating the earnings power of our business amid a strengthening demand environment,” said Dave Mosley, Seagate's chair and chief executive officer.
“Data creation, retention and reuse continue to compound storage demand with long term customer demand visibility reinforcing our view of a multi-year growth phase. Our HAMR-based technology roadmap enables us to address growing exabyte demand through areal density gains while maintaining supply discipline. Combined with our value-based pricing strategy and strengthened balance sheet, we believe Seagate can deliver profitable growth, strong cash generation and increased shareholder returns over the long term,” Mosley concluded.
For a detailed reconciliation of GAAP to non-GAAP results, see accompanying financial tables.
During the fiscal first quarter, the Company generated $1.7 billion in cash flow from operations and $1.5 billion in free cash flow. Seagate’s balance sheet strengthened as the Company retired approximately $1.2 billion in principal debt in the fiscal first quarter, lowering gross debt to $2.4 billion. Additionally, the Company returned $568 million to shareholders through dividends and share repurchases. As of the end of the quarter, cash and cash equivalents totaled $1.3 billion, and there were 230 million ordinary shares issued and outstanding.
Subsequent to the end of the fiscal first quarter, the Company retired an additional $750 million of principal debt, bringing gross debt to $1.6 billion.
Seagate has issued a Supplemental Financial Information document, which is available on Seagate’s Investor Relations website at investors.seagate.com.
The Board of Directors of the Company (the “Board”) declared a quarterly cash dividend of $0.76 per share, which will be payable on January 7, 2027 to shareholders of record as of the close of business on December 23, 2026. The payment of any future quarterly dividends will be at the discretion of the Board and will be dependent upon Seagate’s financial position, results of operations, available cash, cash flow, capital requirements and other factors deemed relevant by the Board.
The business outlook for the fiscal second quarter of 2027 is based on our current assumptions and expectations; actual results may differ materially as a result of, among other things, the important factors discussed in the Cautionary Note Regarding Forward-Looking Statements section of this release.
The Company is providing the following guidance for its fiscal second quarter 2027: • Revenue of $4.8 billion, plus or minus $100 million
• Non-GAAP diluted EPS of $9.20, plus or minus $0.20 Guidance regarding non-GAAP diluted EPS excludes known pre-tax charges related to estimated share-based compensation expenses of $0.30 per share.
We have not reconciled our non-GAAP diluted EPS guidance for fiscal second quarter 2027 to the most directly comparable GAAP measure, other than estimated share-based compensation expenses, because material items that may impact these measures are out of our control and/or cannot be reasonably predicted, including, but not limited to, net (gain) loss from debt transactions, strategic investment losses (gains) or impairment charges, income tax adjustments on these measures, and other charges or benefits that may arise. The amounts of these measures are not currently available but may be material to future results. A reconciliation of our historical non-GAAP financial measures to their nearest GAAP equivalent is contained in this release.
Seagate management will hold a public webcast today at 2:00 PM PT / 5:00 PM ET that can be accessed on its Investor Relations website at investors.seagate.com.
An archived audio webcast of this event will be available on Seagate’s Investor Relations website at investors.seagate.com shortly following the event conclusion.
Seagate (NASDAQ: STX) is a pioneer in mass-capacity data storage, accelerating ability to harness the full value of data. Our portfolio of advanced storage solutions helps hyperscale cloud providers, enterprises, and consumers protect, create and manage the data that powers their transformation and growth. For more than 45 years, Seagate has driven breakthrough innovations that bring sustainable, high-performance storage to the world at-scale. Learn more at www.seagate.com, and follow us on LinkedIn, YouTube, X and Facebook.
© 2026 Seagate Technology LLC. All rights reserved. Seagate, Seagate Technology, and the Spiral logo are registered trademarks of Seagate Technology LLC in the United States and/or other countries.
This press release and our other communications regarding our quarterly financial results contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical fact. Forward-looking statements include, among other things, statements about the Company’s plans, programs, strategies, prospects, and opportunities; financial outlook for future periods; expectations regarding our ability to service debt and continue to generate free cash flow; expectations regarding our ability to make timely quarterly payments under the settlement agreement with the U.S. Department of Commerce’s Bureau of Industry and Security; expectations regarding logistical, macroeconomic, or other factors affecting the Company, including uncertainty related to tariffs, trade restrictions, or evolving global trade policy; expectations regarding market demand for the Company’s products, our visibility into such demand and our ability to optimize our level of production and meet market and industry expectations and the effects of these future trends on Company’s financial and operational performance, including our ability to deliver profitable growth; anticipated shifts in technology and storage industry trends, and anticipated demand and performance of new storage product introductions, including HAMR-based Mozaic products; our ability to successfully integrate acquisitions with our existing business; and expectations regarding the Company’s business strategy and performance, as well as dividend issuance plans for future periods. Forward-looking statements generally can be identified by words such as “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “should,” “may,” “will,” “will continue,” “can,” “could” or the negative of these words, variations of these words and comparable terminology, in each case, intended to refer to future events or circumstances. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Forward-looking statements are subject to various uncertainties and risks that could cause our actual results to differ materially from historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s latest periodic report on Form 10-Q or Form 10-K filed with the U.S. Securities and Exchange Commission. Undue reliance should not be placed on the forward- looking statements in this press release, which are based on information available to us on, and which speak only as of, the date hereof. The Company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, unless required by applicable law.
The inclusion of Seagate’s website addresses in this press release are provided for convenience only. The information contained in, or that can be accessed through, Seagate’s websites and social media channels are not part of this press release.
October 2, 2026 July 3, 2026 ────────────────────────────────────────────────────────────────────────────── -unaudited ASSETS Current assets: Cash and cash equivalents $ 1,258 $ 1,704 Accounts receivable, net 1,817 1,534 Inventories, net 1,700 1,571 Other current assets 621 412 Total current assets 5,396 5,221 Property, equipment and leasehold 2,165 2,034 improvements, net Goodwill 1,221 1,221 Deferred income taxes 1,161 1,105 Other assets, net 383 391 Total Assets $ 10,326 $ 9,972 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 1,873 $ 1,748 Accrued employee 227 377 compensation Accrued warranty 80 73 Current portion of — 185 long-term debt Accrued expenses 788 744 Total current liabilities 2,968 3,127 Long-term accrued warranty 138 125 Other non-current 1,416 1,173 liabilities Long-term debt, less 2,351 3,380 current portion Total Liabilities 6,873 7,805 Total Shareholders’ Equity 3,453 2,167 Total Liabilities and Shareholders’ $ 10,326 $ 9,972 Equity
For the Three Months Ended October 2, 2026 October 3, 2025 ────────────────────────────────────────────────────────────────────────────── Revenue $ 4,233 $ 2,629 Cost of revenue 1,806 1,592 Product 200 186 development Marketing and 159 144 administrative Restructuring 4 13 and other, net Total operating 2,169 1,935 expenses Income from 2,064 694 operations Interest income 7 7 Interest expense -41 -80 Net loss from debt -44 -6 transactions Other, net -4 -1 Other expense, -82 -80 net Income before 1,982 614 income taxes Provision for 221 65 income taxes Net income $ 1,761 $ 549 Net income per share: Basic $ 7.72 $ 2.58 Diluted $ 7.59 $ 2.43 Number of shares used in per share calculations: Basic 228 213 Diluted 232 226 Cash dividends declared per $ 0.74 $ 0.72 ordinary share
For the Three Months Ended October 2, 2026 October 3, 2025 ────────────────────────────────────────────────────────────────────────────── OPERATING ACTIVITIES Net income $ 1,761 $ 549 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and 76 72 amortization Share-based 63 52 compensation Deferred income -57 -25 taxes Net loss from debt 44 6 transactions Other non-cash operating 3 15 activities, net Changes in operating assets and liabilities: Accounts -283 -114 receivable, net Inventories, net -129 -56 Accounts payable 101 84 Accrued employee -129 -140 compensation Accrued expenses, income 272 98 taxes and warranty Other assets and -32 -9 liabilities Net cash provided by 1,690 532 operating activities INVESTING ACTIVITIES Acquisition of property, equipment and -211 -105 leasehold improvements Proceeds from business — 15 divestiture Net cash used in investing -211 -90 activities FINANCING ACTIVITIES Redemption and repurchase of -1,262 — debt Dividends to -168 -153 shareholders Repurchases of -400 -29 ordinary shares Taxes paid related to net share -17 -50 settlement of equity awards Proceeds from issuance of ordinary 34 22 shares under employee stock plans Other financing -1 -11 activities, net Net cash used in financing -1,814 -221 activities (Decrease) Increase in cash, cash -335 221 equivalents and restricted cash Cash, cash equivalents and restricted 1,705 893 cash at the beginning of the period Cash, cash equivalents and restricted $ 1,370 $ 1,114 cash at the end of the period
The Company uses non-GAAP measures of gross profit, gross margin, operating expenses, income from operations, operating margin, net income, diluted EPS, free cash flow, EBITDA, adjusted EBITDA and last twelve months adjusted EBITDA, which are adjusted from results based on GAAP to exclude certain benefits, expenses, gains and losses. These non-GAAP financial measures are used by management to evaluate the business and provided to enhance the user’s overall understanding of the Company’s current financial performance and its prospects for the future. Specifically, the Company believes non-GAAP results provide useful information to investors as these non-GAAP results exclude certain benefits, expenses, gains and losses that the Company believes are not part of the Company's ongoing operations and not indicative of its core operating results.
These non-GAAP financial measures are some of the measurements management uses to assess the Company’s performance, allocate resources and plan for future periods. Reported non-GAAP results should only be considered as supplemental to results prepared in accordance with GAAP, and not considered as a substitute or replacement for, or superior to, GAAP results. These non-GAAP measures may differ from the non-GAAP measures reported by other companies in its industry.
For the Three October 2, October 3, Months Ended 2026 2025 ────────────────────────────────────────────────────────────────────────────── GAAP Gross $ 2,427 $ 1,037 Profit Amortization of acquired 2 3 intangible assets Share-based compensation 18 14 related charges Non-GAAP $ 2,447 $ 1,054 Gross Profit GAAP Gross 57.3% 39.4% Margin Non-GAAP 57.8% 40.1% Gross Margin GAAP Operating $ 363 $ 343 Expenses Acquisition… — -1 charges Restructuri… and other, -4 -13 net Share-based compensation -59 -38 related charges Non-GAAP Operating $ 300 $ 291 Expenses GAAP Income From $ 2,064 $ 694 Operations Acquisition… — 1 charges Amortization of acquired 2 3 intangible assets Restructuri… and other, 4 13 net Share-based compensation 77 52 related charges Non-GAAP Income From $ 2,147 $ 763 Operations GAAP Operating 48.8% 26.4% Margin Non-GAAP Operating 50.7% 29.0% Margin
For the Three Months Ended October 2, 2026 October 3, 2025 ────────────────────────────────────────────────────────────────────────────── GAAP Net Income $ 1,761 $ 549 Acquisition-rel… — 1 charges Amortization of acquired 2 3 intangible assets Net loss from debt 44 6 transactions Restructuring 4 13 and other, net Share-based compensation 77 52 related charges Income tax -107 -41 adjustments Non-GAAP Net $ 1,781 $ 583 Income
GAAP Diluted Net Income Per Share $ 7.59 $ 2.43 Acquisition-related charges — — Amortization of acquired intangible 0.01 0.01 assets Net loss from debt transactions 0.19 0.03 Restructuring and other, net 0.02 0.06 Share-based compensation related charges 0.33 0.23 Income tax adjustments -0.46 -0.18 Non-GAAP diluted share count — 0.03 adjustments1 Non-GAAP Diluted Net Income Per Share1 $ 7.68 $ 2.61 Shares Used In Diluted Net Income Per Share Calculation GAAP 232 226 Non-GAAP diluted share count — -3 adjustments1 Non-GAAP 232 223 GAAP Net Cash Provided by Operating $ 1,690 $ 532 Activities Acquisition of property, equipment and -211 -105 leasehold improvements Free Cash Flow $ 1,479 $ 427
1 For the three months ended October 3, 2025, using the if-converted method, approximately 10 million shares are issuable upon conversion of our 2028 exchangeable senior notes. These dilutive effects are expected to be offset partially by the capped call transactions and are excluded from non-GAAP shares used in diluted net income per share calculation.
Acquisition-related charges are primarily related to transaction and integration costs. These expenses are excluded in the non-GAAP measures due to the inconsistency in amount and frequency, and they are not normal operating expenses or indicative of the Company’s operating performance. Excluding these amounts provides investors with a supplemental view to evaluate the Company’s operating performance across periods .
The Company records expense from amortization of intangible assets that were acquired in connection with its business combinations over their estimated useful lives. Such charges are inconsistent in size and are significantly impacted by the timing and magnitude of the Company’s acquisitions. Consequently, the Company excludes these amounts to provide investors with a supplemental view of the Company’s operating performance across periods.
From time to time, the Company incurs charges related to the settlement of litigation matters. These charges are inconsistent in amount and frequency and are excluded from the Company’s non-GAAP measures to provide investors with a supplemental view of the Company’s operating performance across periods.
From time to time, the Company records net gains or losses from the sale of businesses. These net gains or losses are excluded in the non-GAAP measures because they are not indicative of the Company’s operating performance. The Company excludes these amounts to provide investors with a supplemental view of the Company’s operating performance across periods.
From time to time, the Company incurs gains, losses and fees from the early redemption and repurchase of certain long-term debt instruments. The amount of these charges may be inconsistent in size and varies depending on the timing of the early redemption of debt. The Company does not believe these are part of its normal operating performance. Excluding these amounts provides investors with a supplemental view to evaluate the Company’s operating performance across periods.
Restructuring and other, net are costs associated with restructuring plans that are primarily related to reduction in the Company’s workforce, exiting certain facilities, inventory write down related to discontinued product lines and other related costs, as well as charges or gains from sale of properties. These costs or benefits do not reflect the Company’s normal or ongoing operating performance and consequently the Company excludes these amounts to provide investors with a supplemental view of the Company’s operating performance across periods.
Share-based compensation related charges primarily consist of costs related to restricted stock, performance share units, stock options and employee stock purchases, and their associated employer payroll taxes. The Company excludes these amounts from its non-GAAP measures because they can fluctuate based on factors unrelated to underlying operating performance, such as the Company’s stock price, award vesting schedule and the timing and size of stock option exercises. Excluding these amounts provides investors with a supplemental view to evaluate the Company’s operating performance across periods.
From time to time, the Company recognizes gains, losses or impairment charges from strategic investments, including fair value changes, equity method gains and losses, impairment charges, and adjustments resulting from observable price changes under the measurement alternative. These amounts may vary significantly in amount and frequency and are not considered indicative of the Company's underlying operating performance. The Company excludes these amounts to provide investors with a supplemental view of the Company’s operating performance across periods.
Other charges primarily include IT transformation costs. These charges are inconsistent in amount and frequency and are excluded to provide investors with a supplemental view of the Company's operating performance across periods.
Seagate utilizes a projected annual non-GAAP income tax rate to determine its non-GAAP income taxes. The annual non-GAAP tax rate is based on considerations such as its current tax structure, projected tax positions and impacts from key legislation implemented in various jurisdictions but excludes the tax effects of pre-tax non-GAAP adjustments and other significant non-recurring income tax items. The Company believes applying the non-GAAP tax rate provides consistency across the interim reporting periods and reduces the effects of items not directly related to its operating structure that can vary in size and frequency. The non-GAAP income tax rate could be subject to change for a variety of reasons, including significant changes in tax laws. The Company will re-evaluate periodically its non-GAAP tax rate and may adjust as appropriate. For fiscal year 2027, the Company uses a projected non-GAAP income tax rate of 15.5%.
Using the if-converted method, diluted net income per share is calculated assuming that the excess value above the principal of the 2028 exchangeable notes were converted solely into shares of common stock at the beginning of the reporting period, unless the result would be anti-dilutive. Non-GAAP shares used in diluted net income per share calculation excluded certain dilutive shares, which are expected to be offset partially by the capped call transactions entered by the Company in conjunction with our 2028 exchangeable senior notes in order to reduce the potential dilution to the Company’s ordinary shares upon the conversion.
Free cash flow is a non-GAAP measure defined as net cash provided by operating activities less acquisition of property, equipment and leasehold improvements. Free cash flow does not reflect non-cash items, net cash used or provided by financing activities and net cash used or provided by investing activities, other than acquisition of property, equipment and leasehold improvements. This non-GAAP financial measure is used by management to assess the Company's sources of liquidity, capital structure and operating performance.
EBITDA is defined as net income before income tax expense, interest expense, interest income, depreciation and amortization. Adjusted EBITDA excludes certain expenses, gains and losses that the Company believes are not indicative of its core operating results. These adjustments primarily include net gain/loss from debt transactions, net gain/loss from business divestiture, restructuring and other, net, share-based compensation related charges, strategic investment gain/loss or impairment charge, and other extraordinary charges such as factory underutilization charges. LTM adjusted EBITDA is defined as the total of last twelve months adjusted EBITDA. These non-GAAP financial measures are used by management to evaluate the Company’s debt portfolio and structure to comply with its financial debt covenants.
Full text with the tables
Exhibit 99.1
Investor Relations Contact:
Shanye Hudson, (510) 661-1600
shanye.hudson@seagate.com
Media Contact:
Carrie Schafer, (303) 941-9470
carrie.schafer@seagate.com
SEAGATE TECHNOLOGY REPORTS FISCAL FIRST QUARTER 2027 FINANCIAL RESULTS
Fiscal Q1 2027 Highlights
▪ Revenue of $4.2 billion
▪ GAAP gross margin of 57.3%; non-GAAP gross margin of 57.8%
▪ GAAP diluted earnings per share (EPS) of $7.59; non-GAAP diluted EPS of $7.68
▪ Cash flow from operations of $1.7 billion and free cash flow of $1.5 billion
▪ Retired $1.2 billion of debt and returned $568 million to shareholders through
dividends and share repurchases
▪ Increased quarterly cash dividend by approximately 3% to $0.76 per share
Singapore
– October 28, 2026 - Seagate Technology Holdings plc (NASDAQ: STX) (the
“Company” or “Seagate”), a leading innovator of mass-capacity data storage,
today reported financial results for its fiscal first quarter ended October 2,
2026.
“Seagate delivered another quarter of record profitability and our highest ever
free cash flow in the September quarter, demonstrating the earnings power of our
business amid a strengthening demand environment,” said Dave Mosley, Seagate's
chair and chief executive officer.
“Data creation, retention and reuse continue to compound storage demand with
long term customer demand visibility reinforcing our view of a multi-year growth
phase. Our HAMR-based technology roadmap enables us to address growing exabyte
demand through areal density gains while maintaining supply discipline. Combined
with our value-based pricing strategy and strengthened balance sheet, we believe
Seagate can deliver profitable growth, strong cash generation and increased
shareholder returns over the long term,” Mosley concluded.
Quarterly Financial Results
GAAP Non-…
FQ1 FQ1 FQ1 FQ1
2027 2026 2027 2026
──────────────────────────────────────────────────────────────────────────────
Rev… $ 4,233 $ 2,629 $ 4,233 $ 2,629
($M)
Gro… 57.3% 39.4% 57.8% 40.1%
Mar…
Ope… 48.8% 26.4% 50.7% 29.0%
Mar…
Net
Inc… $ 1,761 $ 549 $ 1,781 $ 583
($M)
Dil…
Ear… $ 7.59 $ 2.43 $ 7.68 $ 2.61
Per
Sha…
For a detailed reconciliation of GAAP to non-GAAP results, see accompanying
financial tables.
During the fiscal first quarter, the Company generated $1.7 billion in cash flow
from operations and $1.5 billion in free cash flow. Seagate’s balance sheet
strengthened as the Company retired approximately $1.2 billion in principal debt
in the fiscal first quarter, lowering gross debt to $2.4 billion. Additionally,
the Company returned $568 million to shareholders through dividends and share
repurchases. As of the end of the quarter, cash and cash equivalents totaled
$1.3 billion, and there were 230 million ordinary shares issued and outstanding.
Subsequent to the end of the fiscal first quarter, the Company retired an
additional $750 million of principal debt, bringing gross debt to $1.6 billion.
Seagate has issued a Supplemental Financial Information document, which is
available on Seagate’s Investor Relations website at investors.seagate.com.
Quarterly Cash Dividend
The Board of Directors of the Company (the “Board”) declared a quarterly cash
dividend of $0.76 per share, which will be payable on January 7, 2027 to
shareholders of record as of the close of business on December 23, 2026. The
payment of any future quarterly dividends will be at the discretion of the Board
and will be dependent upon Seagate’s financial position, results of operations,
available cash, cash flow, capital requirements and other factors deemed
relevant by the Board.
Business Outlook
The business outlook for the fiscal second quarter of 2027 is based on our
current assumptions and expectations; actual results may differ materially as a
result of, among other things, the important factors discussed in the Cautionary
Note Regarding Forward-Looking Statements section of this release.
The Company is providing the following guidance for its fiscal second quarter
2027:
• Revenue of $4.8 billion, plus or minus $100 million
• Non-GAAP diluted EPS of $9.20, plus or minus $0.20
Guidance regarding non-GAAP diluted EPS excludes known pre-tax charges related
to estimated share-based compensation expenses of $0.30 per share.
We have not reconciled our non-GAAP diluted EPS guidance for fiscal second
quarter 2027 to the most directly comparable GAAP measure, other than estimated
share-based compensation expenses, because material items that may impact these
measures are out of our control and/or cannot be reasonably predicted,
including, but not limited to, net (gain) loss from debt transactions, strategic
investment losses (gains) or impairment charges, income tax adjustments on these
measures, and other charges or benefits that may arise. The amounts of these
measures are not currently available but may be material to future results. A
reconciliation of our historical non-GAAP financial measures to their nearest
GAAP equivalent is contained in this release.
Investor Communications
Seagate management will hold a public webcast today at 2:00 PM PT / 5:00 PM ET
that can be accessed on its Investor Relations website at investors.seagate.com.
An archived audio webcast of this event will be available on Seagate’s Investor
Relations website at investors.seagate.com shortly following the event
conclusion.
About Seagate Technology
Seagate (NASDAQ: STX) is a pioneer in mass-capacity data storage, accelerating
ability to harness the full value of data. Our portfolio of advanced storage
solutions helps hyperscale cloud providers, enterprises, and consumers protect,
create and manage the data that powers their transformation and growth. For more
than 45 years, Seagate has driven breakthrough innovations that bring
sustainable, high-performance storage to the world at-scale. Learn more at
www.seagate.com, and follow us on LinkedIn, YouTube, X and Facebook.
© 2026 Seagate Technology LLC. All rights reserved. Seagate, Seagate Technology,
and the Spiral logo are registered trademarks of Seagate Technology LLC in the
United States and/or other countries.
Cautionary Note Regarding Forward-Looking Statements
This press release and our other communications regarding our quarterly
financial results contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements
provide current expectations of future events based on certain assumptions and
include any statement that does not directly relate to any historical fact.
Forward-looking statements include, among other things, statements about the
Company’s plans, programs, strategies, prospects, and opportunities; financial
outlook for future periods; expectations regarding our ability to service debt
and continue to generate free cash flow; expectations regarding our ability to
make timely quarterly payments under the settlement agreement with the U.S.
Department of Commerce’s Bureau of Industry and Security; expectations regarding
logistical, macroeconomic, or other factors affecting the Company, including
uncertainty related to tariffs, trade restrictions, or evolving global trade
policy; expectations regarding market demand for the Company’s products, our
visibility into such demand and our ability to optimize our level of production
and meet market and industry expectations and the effects of these future trends
on Company’s financial and operational performance, including our ability to
deliver profitable growth; anticipated shifts in technology and storage industry
trends, and anticipated demand and performance of new storage product
introductions, including HAMR-based Mozaic products; our ability to successfully
integrate acquisitions with our existing business; and expectations regarding
the Company’s business strategy and performance, as well as dividend issuance
plans for future periods. Forward-looking statements generally can be identified
by words such as “expects,” “intends,” “plans,” “anticipates,” “believes,”
“estimates,” “predicts,” “projects,” “should,” “may,” “will,” “will continue,”
“can,” “could” or the negative of these words, variations of these words and
comparable terminology, in each case, intended to refer to future events or
circumstances. However, the absence of these words or similar expressions does
not mean that a statement is not forward-looking. Forward-looking statements are
subject to various uncertainties and risks that could cause our actual results
to differ materially from historical experience and our present expectations or
projections. These risks and uncertainties include, but are not limited to,
those described under the captions “Risk Factors” and “Management’s Discussion
and Analysis of Financial Condition and Results of Operations” in the Company’s
latest periodic report on Form 10-Q or Form 10-K filed with the U.S. Securities
and Exchange Commission. Undue reliance should not be placed on the forward-
looking statements in this press release, which are based on information
available to us on, and which speak only as of, the date hereof. The Company
undertakes no obligation to update forward-looking statements to reflect events
or circumstances after the date they were made, unless required by applicable
law.
The inclusion of Seagate’s website addresses in this press release are provided
for convenience only. The information contained in, or that can be accessed
through, Seagate’s websites and social media channels are not part of this press
release.
SEAGATE TECHNOLOGY HOLDINGS PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
October 2, 2026 July 3, 2026
──────────────────────────────────────────────────────────────────────────────
-unaudited
ASSETS
Current assets:
Cash and cash equivalents $ 1,258 $ 1,704
Accounts receivable, net 1,817 1,534
Inventories, net 1,700 1,571
Other current assets 621 412
Total current assets 5,396 5,221
Property, equipment and
leasehold 2,165 2,034
improvements, net
Goodwill 1,221 1,221
Deferred income taxes 1,161 1,105
Other assets, net 383 391
Total Assets $ 10,326 $ 9,972
LIABILITIES AND
SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 1,873 $ 1,748
Accrued employee 227 377
compensation
Accrued warranty 80 73
Current portion of — 185
long-term debt
Accrued expenses 788 744
Total current liabilities 2,968 3,127
Long-term accrued warranty 138 125
Other non-current 1,416 1,173
liabilities
Long-term debt, less 2,351 3,380
current portion
Total Liabilities 6,873 7,805
Total Shareholders’ Equity 3,453 2,167
Total Liabilities and
Shareholders’ $ 10,326 $ 9,972
Equity
SEAGATE TECHNOLOGY HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
(Unaudited
)
For the Three
Months
Ended October 2, 2026 October 3, 2025
──────────────────────────────────────────────────────────────────────────────
Revenue $ 4,233 $ 2,629
Cost of revenue 1,806 1,592
Product 200 186
development
Marketing and 159 144
administrative
Restructuring 4 13
and other, net
Total operating 2,169 1,935
expenses
Income from 2,064 694
operations
Interest income 7 7
Interest expense -41 -80
Net loss from
debt -44 -6
transactions
Other, net -4 -1
Other expense, -82 -80
net
Income before 1,982 614
income taxes
Provision for 221 65
income taxes
Net income $ 1,761 $ 549
Net income per
share:
Basic $ 7.72 $ 2.58
Diluted $ 7.59 $ 2.43
Number of shares
used in per
share
calculations:
Basic 228 213
Diluted 232 226
Cash dividends
declared per $ 0.74 $ 0.72
ordinary
share
SEAGATE TECHNOLOGY HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
For the Three
Months
Ended October 2, 2026 October 3, 2025
──────────────────────────────────────────────────────────────────────────────
OPERATING
ACTIVITIES
Net income $ 1,761 $ 549
Adjustments to
reconcile net
income to
net cash
provided by
operating
activities:
Depreciation and 76 72
amortization
Share-based 63 52
compensation
Deferred income -57 -25
taxes
Net loss from
debt 44 6
transactions
Other non-cash
operating 3 15
activities, net
Changes in
operating assets
and
liabilities:
Accounts -283 -114
receivable, net
Inventories, net -129 -56
Accounts payable 101 84
Accrued employee -129 -140
compensation
Accrued
expenses, income 272 98
taxes and
warranty
Other assets and -32 -9
liabilities
Net cash
provided by 1,690 532
operating
activities
INVESTING
ACTIVITIES
Acquisition of
property,
equipment and -211 -105
leasehold
improvements
Proceeds from
business — 15
divestiture
Net cash used in
investing -211 -90
activities
FINANCING
ACTIVITIES
Redemption and
repurchase of -1,262 —
debt
Dividends to -168 -153
shareholders
Repurchases of -400 -29
ordinary shares
Taxes paid
related to net
share -17 -50
settlement of
equity awards
Proceeds from
issuance of
ordinary 34 22
shares under
employee stock
plans
Other financing -1 -11
activities, net
Net cash used in
financing -1,814 -221
activities
(Decrease)
Increase in
cash, cash -335 221
equivalents and
restricted cash
Cash, cash
equivalents and
restricted 1,705 893
cash at the
beginning of the
period
Cash, cash
equivalents and
restricted $ 1,370 $ 1,114
cash at the end
of the period
Use of non-GAAP financial information
The Company uses non-GAAP measures of gross profit, gross margin, operating
expenses, income from operations, operating margin, net income, diluted EPS,
free cash flow, EBITDA, adjusted EBITDA and last twelve months adjusted EBITDA,
which are adjusted from results based on GAAP to exclude certain benefits,
expenses, gains and losses. These non-GAAP financial measures are used by
management to evaluate the business and provided to enhance the user’s overall
understanding of the Company’s current financial performance and its prospects
for the future. Specifically, the Company believes non-GAAP results provide
useful information to investors as these non-GAAP results exclude certain
benefits, expenses, gains and losses that the Company believes are not part of
the Company's ongoing operations and not indicative of its core operating
results.
These non-GAAP financial measures are some of the measurements management uses
to assess the Company’s performance, allocate resources and plan for future
periods. Reported non-GAAP results should only be considered as supplemental to
results prepared in accordance with GAAP, and not considered as a substitute or
replacement for, or superior to, GAAP results. These non-GAAP measures may
differ from the non-GAAP measures reported by other companies in its industry.
SEAGATE TECHNOLOGY HOLDINGS PLC
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES
(In millions, except per share amounts, gross margin and operating margin)
(Unaudited)
For the
Three October 2, October 3,
Months Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
GAAP Gross $ 2,427 $ 1,037
Profit
Amortization
of acquired 2 3
intangible
assets
Share-based
compensation 18 14
related
charges
Non-GAAP $ 2,447 $ 1,054
Gross Profit
GAAP Gross 57.3% 39.4%
Margin
Non-GAAP 57.8% 40.1%
Gross Margin
GAAP
Operating $ 363 $ 343
Expenses
Acquisition… — -1
charges
Restructuri…
and other, -4 -13
net
Share-based
compensation -59 -38
related
charges
Non-GAAP
Operating $ 300 $ 291
Expenses
GAAP Income
From $ 2,064 $ 694
Operations
Acquisition… — 1
charges
Amortization
of acquired 2 3
intangible
assets
Restructuri…
and other, 4 13
net
Share-based
compensation 77 52
related
charges
Non-GAAP
Income From $ 2,147 $ 763
Operations
GAAP
Operating 48.8% 26.4%
Margin
Non-GAAP
Operating 50.7% 29.0%
Margin
SEAGATE TECHNOLOGY HOLDINGS PLC
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES
(In millions, except per share amounts, gross margin and operating margin)
(Unaudited)
For the Three
Months
Ended October 2, 2026 October 3, 2025
──────────────────────────────────────────────────────────────────────────────
GAAP Net Income $ 1,761 $ 549
Acquisition-rel… — 1
charges
Amortization of
acquired 2 3
intangible
assets
Net loss from
debt 44 6
transactions
Restructuring 4 13
and other, net
Share-based
compensation 77 52
related charges
Income tax -107 -41
adjustments
Non-GAAP Net $ 1,781 $ 583
Income
GAAP Diluted Net Income Per Share $ 7.59 $ 2.43
Acquisition-related charges — —
Amortization of acquired intangible 0.01 0.01
assets
Net loss from debt transactions 0.19 0.03
Restructuring and other, net 0.02 0.06
Share-based compensation related charges 0.33 0.23
Income tax adjustments -0.46 -0.18
Non-GAAP diluted share count — 0.03
adjustments1
Non-GAAP Diluted Net Income Per Share1 $ 7.68 $ 2.61
Shares Used In Diluted Net Income Per
Share Calculation
GAAP 232 226
Non-GAAP diluted share count — -3
adjustments1
Non-GAAP 232 223
GAAP Net Cash Provided by Operating $ 1,690 $ 532
Activities
Acquisition of property, equipment and -211 -105
leasehold improvements
Free Cash Flow $ 1,479 $ 427
1 For the three months ended October 3, 2025, using the if-converted method,
approximately 10 million shares are issuable upon conversion of our 2028
exchangeable senior notes. These dilutive effects are expected to be offset
partially by the capped call transactions and are excluded from non-GAAP shares
used in diluted net income per share calculation.
SEAGATE TECHNOLOGY HOLDINGS PLC
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES
(In millions)
(Unaudited)
For
the
Three Octob… July April January Last
Months 2, 3, 3, 2, Twelve
Ended 2026 2026 2026 2026 Months
──────────────────────────────────────────────────────────────────────────────
GAAP
Net $ 1,761 $ 1,294 $ 748 $ 593 $ 4,396
Inco…
Depr…
and 76 70 66 68 280
amor…
Inte… 41 64 68 72 245
expe…
Inte… -7 -10 -6 -7 -30
inco…
Inco…
tax 221 211 116 114 662
expe…
Non-… 2,092 1,629 992 840 5,553
EBIT…
Legal — — 105 — 105
sett…
Net
loss
from — — 3 — 3
busi…
dive…
Net
loss
from 44 10 69 66 189
debt
tran…
Rest…
and 4 4 7 3 18
othe…
net
Shar…
comp… 77 54 54 53 238
rela…
char…
Stra…
inve… — -14 — — -14
gains
Other — 1 1 — 2
char…
Non-…
Adju… $ 2,217 $ 1,684 $ 1,231 $ 962 $ 6,094
EBIT…
The Company’s Non-GAAP measures are adjusted for the following items:
Acquisition-related charges
Acquisition-related charges are primarily related to transaction and integration
costs. These expenses are excluded in the non-GAAP measures due to the
inconsistency in amount and frequency, and they are not normal operating
expenses or indicative of the Company’s operating performance. Excluding these
amounts provides investors with a supplemental view to evaluate the Company’s
operating performance across periods .
Amortization of acquired intangible assets
The Company records expense from amortization of intangible assets that were
acquired in connection with its business combinations over their estimated
useful lives. Such charges are inconsistent in size and are significantly
impacted by the timing and magnitude of the Company’s acquisitions.
Consequently, the Company excludes these amounts to provide investors with a
supplemental view of the Company’s operating performance across periods.
Legal settlement
From time to time, the Company incurs charges related to the settlement of
litigation matters. These charges are inconsistent in amount and frequency and
are excluded from the Company’s non-GAAP measures to provide investors with a
supplemental view of the Company’s operating performance across periods.
Net gain/loss from business divestiture
From time to time, the Company records net gains or losses from the sale of
businesses. These net gains or losses are excluded in the non-GAAP measures
because they are not indicative of the Company’s operating performance. The
Company excludes these amounts to provide investors with a supplemental view of
the Company’s operating performance across periods.
Net gain/loss from debt transactions
From time to time, the Company incurs gains, losses and fees from the early
redemption and repurchase of certain long-term debt instruments. The amount of
these charges may be inconsistent in size and varies depending on the timing of
the early redemption of debt. The Company does not believe these are part of its
normal operating performance. Excluding these amounts provides investors with a
supplemental view to evaluate the Company’s operating performance across
periods.
Restructuring and other, net
Restructuring and other, net are costs associated with restructuring plans that
are primarily related to reduction in the Company’s workforce, exiting certain
facilities, inventory write down related to discontinued product lines and other
related costs, as well as charges or gains from sale of properties. These costs
or benefits do not reflect the Company’s normal or ongoing operating performance
and consequently the Company excludes these amounts to provide investors with a
supplemental view of the Company’s operating performance across periods.
Share-based compensation related charges
Share-based compensation related charges primarily consist of costs related to
restricted stock, performance share units, stock options and employee stock
purchases, and their associated employer payroll taxes. The Company excludes
these amounts from its non-GAAP measures because they can fluctuate based on
factors unrelated to underlying operating performance, such as the Company’s
stock price, award vesting schedule and the timing and size of stock option
exercises. Excluding these amounts provides investors with a supplemental view
to evaluate the Company’s operating performance across periods.
Strategic investment gains, losses and impairment charges
From time to time, the Company recognizes gains, losses or impairment charges
from strategic investments, including fair value changes, equity method gains
and losses, impairment charges, and adjustments resulting from observable price
changes under the measurement alternative. These amounts may vary significantly
in amount and frequency and are not considered indicative of the Company's
underlying operating performance. The Company excludes these amounts to provide
investors with a supplemental view of the Company’s operating performance across
periods.
Other charges
Other charges primarily include IT transformation costs. These charges are
inconsistent in amount and frequency and are excluded to provide investors with
a supplemental view of the Company's operating performance across periods.
Income tax adjustments
Seagate utilizes a projected annual non-GAAP income tax rate to determine its
non-GAAP income taxes. The annual non-GAAP tax rate is based on considerations
such as its current tax structure, projected tax positions and impacts from key
legislation implemented in various jurisdictions but excludes the tax effects of
pre-tax non-GAAP adjustments and other significant non-recurring income tax
items. The Company believes applying the non-GAAP tax rate provides consistency
across the interim reporting periods and reduces the effects of items not
directly related to its operating structure that can vary in size and frequency.
The non-GAAP income tax rate could be subject to change for a variety of
reasons, including significant changes in tax laws. The Company will re-evaluate
periodically its non-GAAP tax rate and may adjust as appropriate. For fiscal
year 2027, the Company uses a projected non-GAAP income tax rate of 15.5%.
Non-GAAP diluted share count adjustments
Using the if-converted method, diluted net income per share is calculated
assuming that the excess value above the principal of the 2028 exchangeable
notes were converted solely into shares of common stock at the beginning of the
reporting period, unless the result would be anti-dilutive. Non-GAAP shares used
in diluted net income per share calculation excluded certain dilutive shares,
which are expected to be offset partially by the capped call transactions
entered by the Company in conjunction with our 2028 exchangeable senior notes in
order to reduce the potential dilution to the Company’s ordinary shares upon the
conversion.
Free cash flow
Free cash flow is a non-GAAP measure defined as net cash provided by operating
activities less acquisition of property, equipment and leasehold improvements.
Free cash flow does not reflect non-cash items, net cash used or provided by
financing activities and net cash used or provided by investing activities,
other than acquisition of property, equipment and leasehold improvements. This
non-GAAP financial measure is used by management to assess the Company's sources
of liquidity, capital structure and operating performance.
EBITDA, adjusted EBITDA and last twelve months (LTM) adjusted EBITDA
EBITDA is defined as net income before income tax expense, interest expense,
interest income, depreciation and amortization. Adjusted EBITDA excludes certain
expenses, gains and losses that the Company believes are not indicative of its
core operating results. These adjustments primarily include net gain/loss from
debt transactions, net gain/loss from business divestiture, restructuring and
other, net, share-based compensation related charges, strategic investment
gain/loss or impairment charge, and other extraordinary charges such as factory
underutilization charges. LTM adjusted EBITDA is defined as the total of last
twelve months adjusted EBITDA. These non-GAAP financial measures are used by
management to evaluate the Company’s debt portfolio and structure to comply with
its financial debt covenants.