Seagate Technology Holdings plc announced fiscal second‑quarter 2026 results that set new company records. Revenue rose 21% to $2.83 billion, driven by a 79% share of sales in the data‑center segment ($2.20 billion) and a 21% share in the Edge IoT segment ($601 million). The company’s non‑GAAP earnings per share climbed 10% to $3.11, a beat of $0.27 over consensus estimates of $2.84.
Gross and operating margins reached record highs of 42.2% and 31.9%, respectively. The margin expansion reflects a favorable product mix that shifted toward higher‑capacity HAMR‑based Mozaic drives, stronger pricing power in the data‑center market, and disciplined cost management that offset raw‑material and logistics cost pressures. Compared with the prior quarter, revenue was up $200 million and EPS was $0.50 higher, underscoring a clear acceleration in the company’s growth trajectory.
Management highlighted the ramp of HAMR technology as a key driver. CEO Dave Mosley said the quarter “set new company records for exabyte shipments, gross margin, operating margin, and non‑GAAP earnings per share,” and added that the company’s “areal‑density‑driven product roadmap positions us to meet the evolving storage requirements and exabyte demand growth.” CFO Gianluca Romano noted that the company “strengthened its financial position by retiring $500 million in gross debt and generating over $600 million in free cash flow.”
For fiscal third quarter 2026, Seagate guided revenue to $2.90 billion–$3.00 billion and non‑GAAP EPS to $3.20–$3.60, both above consensus estimates. The upward guidance signals management’s confidence in sustained demand from data‑center and AI workloads, as well as the continued ramp of high‑capacity storage solutions. The company also reiterated its commitment to disciplined cost control and capital allocation, reinforcing its long‑term profitability outlook.
The results and guidance reinforce Seagate’s competitive position in the hard‑disk drive market, where it and Western Digital are benefiting from the AI‑driven surge in storage demand. The record margins and strong earnings beat demonstrate effective execution and pricing power, while the guidance indicates that the company expects to maintain momentum in the coming quarters.
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