| Metric | Value ($ M) | Q2 FY26 | Q3 FY25 |
|---|---|---|---|
| Revenue | 2.8K | 7.5% | 30.8% |
| Total Income | 2.8K | 7.5% | 30.8% |
| Expenditure | 2.0K | 2.4% | 14.6% |
| PBT | 707.00 | 15.2% | 99.2% |
| Net Profit | 593.00 | 8.0% | 74.4% |
| OPM | 29.84% | 3.44pp | 9.89pp |
| NPM | 20.99% | 0.11pp | 5.25pp |
| EPS | 2.75 | 6.6% | 71.9% |
Seagate Reports Fiscal Q3 2026 Financial Results with $3.11 Billion Revenue, Exceeding Guidance
29 Apr 2026 · 29 Apr, 1:48 am
Summary
Seagate Technology Holdings plc reported strong financial results for its fiscal third quarter ended April 3, 2026, with revenue reaching $3.11 billion. The company demonstrated significant profitability improvements, achieving a non-GAAP gross margin of 47.0% and non-GAAP diluted earnings per share of $4.10. These results exceeded management's guidance, driven by robust demand for mass-capacity data storage, particularly from AI applications. The company also generated substantial free cash flow of $953 million and actively managed its balance sheet by retiring $641 million in debt and returning $191 million to shareholders.
Key Highlights
- 1
Seagate Technology reported strong fiscal third quarter 2026 revenue of $3.11 billion, representing a 44.1% increase compared to $2.16 billion in the prior year's quarter.
- 2
Non-GAAP diluted earnings per share more than doubled to $4.10, up 115.8% from $1.90 in fiscal Q3 2025.
- 3
The company achieved a non-GAAP gross margin of 47.0%, a substantial improvement from 36.2% in the same period last year, reflecting record margin performance.
- 4
Seagate generated robust cash flow from operations of $1.1 billion and free cash flow of $953 million during the quarter.
- 5
The company actively managed its capital structure by retiring $641 million in debt and returned $191 million to shareholders through dividends and share repurchases.
- 6
Management highlighted exceeding revenue and EPS guidance, attributing performance to strong demand amplified by AI applications and positioning for structural growth.
Management Comments
Dave Mosley
Seagate delivered outstanding March quarter results, exceeding the high end of our revenue and EPS guidance, achieving record margin performance, and generating close to $1 billion in free cash flow. We believe Seagate is entering a new era of structural growth as AI applications amplify data creation and support sustained storage demand. Our areal density-driven product strategy enables us to deliver higher-capacity, energy- and capital-efficient storage at scale. Through disciplined execution, we are strategically positioned to capture these opportunities, and drive profitable growth and long-term value creation.
Informational and educational content only. Not investment advice.