Seagate Technology posts record profit and AI‑driven storage demand in Q4 2026
Seagate Technology reported fiscal Q4 2026 results that beat estimates. Revenue reached $3.63 billion, up 48.5% year‑over‑year and above the $3.49 billion consensus. Non‑GAAP earnings per share were $5.71, a 120% increase from the prior year and beating the $5.10 estimate. The company posted a record non‑GAAP gross margin of 52.7% and an operating margin of 44.6%, up from 26.2% a year earlier. Cash flow from operations was $1.3 billion and free cash flow $1.1 billion, while $302 million of debt was retired.
For the full fiscal year 2026, Seagate posted $12.2 billion in revenue, a 34% rise, non‑GAAP EPS of $15.58 and record free cash flow of $3.1 billion. The firm returned $810 million to shareholders through dividends and buybacks and reduced total debt by $1.4 billion. Management forecast FY2027 revenue of about $4.1 billion and non‑GAAP EPS of $7.30, both well above analyst expectations. CEO Dave Mosley highlighted accelerating AI‑driven data generation as a durable driver of long‑term storage demand, noting that production capacity is largely booked through 2027 and near‑line exabyte capacity allocated into 2028, with customers planning out to 2029. Pricing tailwinds are also supporting the strong outlook.
Entities: Argus Research · Dave Mosley · Seagate Technology · Seagate Technology Holdings · TD Cowen · Wedbush · Wells Fargo
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [○ 1 SOURCE] Q4 FY2026 operating margin was 44.6%, up from 26.2% the previous year. (df2e1b11-978c-42e9-8040-d87b36d46858)
- [○ 1 SOURCE] Non‑GAAP EPS for Q4 FY2026 was $5.71, a 120% increase year‑over‑year, beating the $5.10 estimate. (df2e1b11-978c-42e9-8040-d87b36d46858)
- [○ 1 SOURCE] FY2027 revenue guidance is $4.1 billion, above consensus estimates. (df2e1b11-978c-42e9-8040-d87b36d46858)
- [○ 1 SOURCE] Q4 FY2026 non‑GAAP gross margin was 52.7%, a record high for Seagate. (df2e1b11-978c-42e9-8040-d87b36d46858)
- [○ 1 SOURCE] Full‑year FY2026 revenue was $12.2 billion, up 34% year‑over‑year. (df2e1b11-978c-42e9-8040-d87b36d46858)
- [○ 1 SOURCE] Seagate reported Q4 FY2026 revenue of $3.63 billion, up 48.5% year‑over‑year and above the $3.49 billion consensus estimate. (df2e1b11-978c-42e9-8040-d87b36d46858)
- [○ 1 SOURCE] FY2026 free cash flow reached a record $3.1 billion. (df2e1b11-978c-42e9-8040-d87b36d46858)
- [○ 1 SOURCE] Seagate retired $302 million of debt during Q4 FY2026. (df2e1b11-978c-42e9-8040-d87b36d46858)