Seagate guides to $4.8 billion revenue after record profitability

Seagate Technology guided to revenue of about $4.8 billion for its fiscal second quarter after reporting record profitability in the September quarter, according to its earnings release filed with an 8-K.

The hard drive maker reported fiscal first-quarter revenue of $4.2 billion. GAAP diluted earnings were $7.59 per share and non-GAAP diluted earnings were $7.68. GAAP gross margin was 57.3%, and non-GAAP gross margin was 57.8%.

Record cash generation

Cash flow from operations was $1.7 billion and free cash flow was $1.5 billion, the release said. Seagate retired $1.2 billion of debt and returned $568 million to shareholders through dividends and buybacks. It raised its quarterly dividend about 3% to $0.76 per share.

Guidance points higher

For the fiscal second quarter, Seagate expects revenue of $4.8 billion, plus or minus $100 million, and non-GAAP diluted earnings of $9.20 per share, plus or minus $0.20.

Management's view

Chair and Chief Executive Dave Mosley said Seagate "delivered another quarter of record profitability and our highest ever free cash flow in the September quarter." He said data creation, retention and reuse "continue to compound storage demand" and that long-term customer demand visibility reinforces the company's view of "a multi-year growth phase."

Mosley pointed to Seagate's HAMR technology, a method of writing more data onto each disk, as a way to meet demand through higher storage density while maintaining supply discipline.

Why it matters

Cloud companies building out AI infrastructure need vast amounts of storage, and hard drives remain the cheapest way to store data at scale. Seagate's guidance for sharply higher revenue and earnings next quarter suggests that demand is strengthening, while its debt paydown shows it is using the cash to shore up its balance sheet.

Sources

1. Seagate Technology Holdings plc Form 8-K with fiscal first-quarter 2027 results, filed Oct. 27, 2026 (accession 0001137789-26-000300)

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