Seagate Annual Revenue Rises 34% to $12.2 Billion on Shipments and Pricing
Key Facts
Seagate's annual revenue rose 34% to $12.2 billion as its disk storage business expanded, according to the company's shareholder document filed with the U.S. Securities and Exchange Commission. The company originally announced its annual results on July 28, 2026, alongside results for its final fiscal quarter, which also showed revenue growth from the year-earlier period. The results cover the fiscal year ended July 3, 2026, during which the company also improved earnings and cash flow and reduced total debt. Revenue for the final quarter reached $3,629 million, according to the quarterly results table published in the company's financial results announcement. That compares with revenue of $2,444 million in the corresponding quarter a year earlier, leaving the company with growth in both quarterly and annual revenue at the close of its fiscal year.
The improvement extended to profitability, with adjusted operating margin for the fiscal year reaching 36.5%, according to the annual results table Seagate published with its July announcement. The adjusted margin stood at 23.4% in the previous year, reflecting an increase in adjusted operating profit as a share of the company's revenue during the reporting period. Adjusted diluted earnings per share rose to $15.58 from $8.10 in the previous fiscal year, according to the annual comparison in the same announcement. On a GAAP basis, the company reported annual net income of $3,184 million, alongside higher annual revenue and adjusted operating margins. GAAP net income compares with $1,469 million in the previous year, while the company presents adjusted earnings per share among its adjusted financial measures.
Seagate attributed revenue growth to increased nearline drive shipments, supported by higher demand for these products and favorable pricing actions, according to the shareholder document. The company said its business benefited from "higher demand for nearline storage products and favorable pricing actions," identifying demand and pricing as the drivers of growth. Across hard disk drives overall, capacity shipped during the fiscal year rose 33%, according to operating figures the company provided in the document. Total capacity shipped reached 789 exabytes, the measure Seagate used to report hard disk drive shipment volumes during the reporting year. Nearline storage products accounted for about 90% of that capacity, representing the largest share of the shipments the company reported during the period.
Annual free cash flow reached $3,105 million, compared with $818 million in the previous year, according to the free cash flow reconciliation the company published with its results. On debt, Seagate said in the shareholder document that it reduced total debt by $1.4 billion during the fiscal year covered by the report. The company ended the period with total debt of $3.6 billion following that reduction, according to figures in the document filed with the U.S. Securities and Exchange Commission. Cash and cash equivalents stood at $1.7 billion at year-end, according to the earnings announcement, alongside the cash flows the company generated during the period. Seagate also returned $810 million to shareholders during the fiscal year through dividends and share repurchases, according to its statement, while reducing debt.
On products, Seagate announced that drives based on its Mozaic platform offer capacities of up to 44 terabytes, as part of its presentation of higher-density storage technologies for data centers. The company said these drives are shipping in commercial volumes to leading hyperscale cloud service providers, according to its platform announcement. Seagate presents higher-density storage as a way to improve data center efficiency, according to its description of the operational benefits the Mozaic platform offers customers. It added in the announcement that the platform helps "improve data center efficiency and reduce total cost of ownership," linking storage density to the cost of using it. Uses the company identified for high-capacity drives include storing training data, historical archives and AI-generated content as part of large-scale data storage needs.
Seagate plans to expand product availability as production continues to ramp up, according to the Mozaic platform announcement, which lists broader availability among its next steps. The company said "broader product availability is planned as production continues to scale up" in its statement on the high-capacity drives. On financial disclosures, Seagate set the date for its next results announcement in a separate investor relations statement regarding the upcoming fiscal quarter. The forthcoming results will cover the first quarter of fiscal 2027, following the annual results the company announced in July for the previous fiscal year. Results for that quarter are scheduled for release after the U.S. market closes on Tuesday, October 27, 2026, according to the schedule announced by the company.