Q4 2025 Highlights: Strong Revenue and Record Margins
Seagate Technology Holdings plc (NASDAQ: STX), a global leader in mass-capacity data storage solutions, reported a robust fourth quarter, marked by a 30% year-over-year revenue increase, record gross margins, and non-GAAP EPS at the high end of guidance. These results reflect the company’s operational improvements and strong demand from cloud customers for its high-capacity drives.
Innovation at the Forefront: HAMR Technology Ramp Continues
Seagate continues to advance its leadership in areal density with its HAMR (Heat-Assisted Magnetic Recording) technology. The company is executing on product qualifications and scaling up production, reinforcing its strategic positioning to meet growing storage needs across cloud and edge environments.
Dividend Announcement Reflects Financial Strength
The Board of Directors declared a quarterly cash dividend of $0.72 per share, payable on October 9, 2025, to shareholders of record as of September 30, 2025. While future dividends remain at the Board’s discretion, the consistent payout reflects Seagate’s strong balance sheet and commitment to shareholder returns.
Outlook for Fiscal Q1 2026: Continued Momentum Expected
For fiscal Q1 2026, Seagate provided guidance of $2.50 billion in revenue, plus or minus $150 million, and non-GAAP diluted EPS of $2.30, plus or minus $0.20. This forecast signals continued momentum driven by cloud storage demand and operational efficiency.
Stock Rating: BUY – Cloud Growth and Product Leadership Drive Upside Potential
A BUY rating has been given on Seagate (STX) at the closing price of USD 256.84 per share as on 1 October 2025, supported by multiple growth drivers:
- Accelerating demand from cloud and hyperscale customers.
- Leading-edge HAMR technology positioning Seagate ahead in the data storage innovation curve.
- Structural operational improvements driving profitability and margin expansion.
- Attractive dividend yield and shareholder returns.
With the data economy expanding and mass-capacity storage becoming increasingly critical, Seagate is well-positioned to deliver long-term value to both customers and investors.
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