Seagate Technology 8-K
PositiveEarningsNew guidance
Strengthening storage demand drives record profitability; Mozaic targets exabyte growth, with Q2 revenue guided to $4.7B–$4.9B.
Filed 2026-10-27 16:12 ET
- 2.02 Results of Operations
- 7.01 Regulation FD Disclosure
- 9.01 Financial Statements and Exhibits
Summary
Fiscal Q1 2027 results with Q2 guidance. Seagate reported sharply higher revenue and record profitability as it described storage demand as strengthening, driven by rising data creation, retention and reuse. It is positioning its HAMR-based Mozaic high-capacity storage products to meet growing exabyte demand through areal-density gains, while maintaining supply discipline and value-based pricing. The board raised the quarterly dividend ≈3% to $0.76 per share, payable 1/7/2027 to shareholders of record on 12/23/2026.
Key Figures
| Metric | Q1 FY2027 |
|---|---|
| Revenue | $4.23B, +61% Y/Y |
| Gross margin, GAAP | 57.3%, vs 39.4% |
| Gross margin, non-GAAP | 57.8%, vs 40.1% |
| Net income, GAAP | $1.76B, +221% Y/Y |
| Net income, non-GAAP | $1.78B, +205% Y/Y |
| Diluted EPS, GAAP | $7.59, +212% Y/Y |
| Diluted EPS, non-GAAP | $7.68, +194% Y/Y |
| Operating cash flow | $1.69B, +218% Y/Y |
| Free cash flow, non-GAAP | $1.48B, +246% Y/Y |
- Seagate retired ≈$1.2B of principal debt during the quarter, reducing gross debt to $2.4B; after quarter-end it retired another $750M of principal, bringing gross debt to $1.6B.
- Shareholder returns totaled $568M: $400M in share repurchases and $168M in dividends. Cash and cash equivalents were $1.26B, and 230M ordinary shares were issued and outstanding at quarter-end.
Against earlier guidance (derived from earlier filings)
| Metric | Period | Earlier guidance | Actual | Result |
|---|---|---|---|---|
| Revenue | Q1 FY2027 | $4.1B ± $100M | $4.23B | in line |
| Diluted EPS, non-GAAP | Q1 FY2027 | $7.30 ± $0.20 | $7.68 | beat |
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Revenue | Q2 FY2027 | $4.7B-$4.9B | — | — |
| Diluted EPS, non-GAAP | Q2 FY2027 | $9.00-$9.40; excludes $0.30/share of estimated share-based compensation | — | — |
| Projected income tax rate, non-GAAP | FY2027 | 15.5% | — | — |
Investor Takeaways
- Q2 revenue versus guidance will test whether the strengthening storage demand described by Seagate is translating into continued sales growth.
- Watch free cash flow and gross debt following the additional post-quarter debt retirement; continued cash generation would support Seagate’s stated focus on deleveraging and shareholder returns.
The summary is written by an AI model reading the filing.
Model 005 · prompt v111 · 2026-10-27 22:38:43Z