STX · Seagate Technology Holdings plc

Seagate delivered exceptional fiscal Q3 2026 results, surpassing revenue and EPS guidance with $3.11 billion in sales, a 44% year-over-year increase driven by strong demand for mass-capacity storage amid AI-driven data growth. Record margins were achieved with GAAP gross margin at 46.5% and non-GAAP at 47.0%, reflecting efficient areal density improvements and product strategy execution, as highlighted by CEO Dave Mosley. Operating leverage pushed non-GAAP operating margin to 37.5%, contributing to non-GAAP net income of $934 million and diluted EPS of $4.10. Cash generation was robust at $1.1 billion from operations and $953 million free cash flow, enabling $641 million debt retirement—reducing total debt to $3.86 billion—and $191 million returned via dividends and repurchases. Balance sheet strengthened with cash at $1.15 billion and positive shareholders' equity of $1.1 billion, versus prior deficit. Q4 outlook signals continued momentum with $3.45 billion revenue guidance (±$100 million) and $5.00 non-GAAP EPS (±$0.20), incorporating minimal tariff impacts. The $0.74 quarterly dividend underscores capital return discipline. Management's webcast on April 28 provides further outlook details, positioning Seagate for AI-fueled storage demand.