Seagate Technology PLC Q4 2026 Results and FY27 Q1 Outlook
Seagate Technology PLC (NASDAQ:STX) reported adjusted fourth‑quarter 2026 earnings of $5.71 per share on revenue of $3.6 billion, representing a 49% year‑over‑year increase from $2.4 billion in the comparable period. Wall Street consensus had projected earnings of $5.09 per share and revenue of $3.5 billion, so the results comfortably exceeded expectations.
The company’s non‑GAAP gross margin expanded to 52.7%, up from 37.9% in the same quarter a year earlier, reflecting higher pricing power and product mix benefits tied to cloud‑driven demand. Operating cash flow for the quarter reached $3.7 billion, while free cash flow was $3.1 billion.
For the full fiscal year 2026, Seagate generated $12.2 billion in revenue and delivered non‑GAAP diluted earnings per share of $15.58. Cash generation set a record, with operating cash flow of $3.7 billion and free cash flow of $3.1 billion. The firm retired $1.4 billion of total debt during the year, including $302 million in the fourth quarter, leaving a year‑end debt balance of $3.6 billion and cash and cash equivalents of $1.7 billion. A quarterly dividend of $0.74 per share was declared.
Looking ahead, Seagate issued ambitious guidance for fiscal first quarter 2027, projecting revenue of $4.1 billion ± $100 million and non‑GAAP diluted earnings per share of $7.30 ± $0.20. These figures substantially outpace consensus forecasts of $3.8 billion in revenue and $5.87 EPS.
Chief Executive Officer Dave Mosley attributed the strong performance and outlook to long‑term tailwinds from cloud storage growth and the company’s proprietary Mozaic platform and Heat‑Assisted Magnetic Recording (HAMR) roadmap, which are positioned to capture high‑margin demand as artificial‑intelligence workloads increase data generation globally.
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