Seagate’s AI‑storage drive surge reshapes data‑center market

Seagate Technology Holdings reported a major shift from traditional PC‑drive sales to AI‑driven data‑center storage. In the fiscal third quarter ending April 3 2026 the company shipped 199 exabytes of hard‑drive capacity, generated roughly $3.1 billion in revenue, posted a 46.5% gross margin, earned $748 million in net income and produced $1.1 billion of operating cash flow.

Management now classifies its business into two end markets – Data Center, which accounts for the majority of revenue and includes high‑capacity nearline products for hyperscale cloud customers, and Edge Internet of Things, covering consumer‑facing and SSD offerings. The growth is driven by demand for cheap, high‑capacity storage needed for AI training data, archives and backups.

Seagate’s technology lead rests on heat‑assisted magnetic recording (HAMR). Its Mozaic 4+ platform, the industry's first HAMR‑based storage solution deployed at scale, supports drives up to 44 TB and has been qualified with two leading hyperscale cloud providers, marking a commercial milestone for the technology.