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Seagate Technology Holdings plc

Q2 FY26Technology Hardware, Storage and Peripherals

Seagate Technology Holdings plc Q2 FY26 Results — Earnings Call Analysis

Q2 FY26 earnings call: what management said on revenue, margins and capex.

Price₹881

Market cap₹2.0L Cr

P/E80.0

Updated29 May 2026

Read4 min read

What the Q2 FY26 call signalled

3 of 5 strong

RevenueGood growth

MarginMargins steady

CapexCapex planned

FundraiseNo fundraise planned

Order bookOrder book rising

The short version

- Seagate projects strong, structural growth driven by durable demand and increased adoption of Mozaic-based HAMR products. - Seagate expects continued quarterly revenue growth and margin expansion through fiscal 2027, driven by profitable revenue growth and product strategy focused on significant market opportunities.

From Seagate Technology Holdings plc's Q2 FY26 earnings-call transcript · updated 29 May 2026.

Revenue & Sales Performance

Good growth

Seagate projects strong, structural growth driven by durable demand and increased adoption of Mozaic-based HAMR products.
Revenue growth target increased from low-mid teens to a minimum of 20% annually over the next few years.
Build-to-order contracts with major cloud and hyperscale customers are nearly fully allocated through calendar 2027, ensuring nearline capacity visibility and demand predictability.
March quarter shipped 199 exabytes, up 39% year-over-year; data center shipments up 47% year-over-year.
Expected mid-20% exabyte CAGR for nearline storage through fiscal 2027.
Focus on increasing capacity per unit via aerial density improvements rather than unit volume growth.

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Profitability & Margins

Seagate expects continued quarterly revenue growth and margin expansion through fiscal 2027, driven by profitable revenue growth and product strategy focused on significant market opportunities.
Operating expenses are expected to remain relatively flat on a dollar basis, with flexibility to increase if technology investments are needed.
Strong pricing visibility for fiscal 2027: vast majority of nearline capacity allocated, with a stable pricing strategy and no major changes expected.
Profitability is anticipated to improve sequentially through fiscal 2027 due to pricing, product mix improvements, and cost reductions from HAMR drives.
Non-GAAP operating margin expected in the lower 40% range in the near term.

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Capital Expenditure Plans

Capex planned

Capital expenditures for the March quarter were $151 million, about 4% of revenue year-to-date.
Fiscal 2026 capital expenditure is expected to be within the target range of 4% to 6% of revenue.
Investments are focused on the ongoing transition and ramp of HAMR-based products.
Future cost reductions are supported by technology changes mainly under Seagate's control, like Heads and Media, especially related to Mozaic platform and HAMR innovation.
The company is progressing to second-generation HAMR with plans for third-generation (50 terabyte drive expected by end of next calendar year).

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Fundraising & Capital Structure

Focus is on reducing existing debt, especially convertible debt (about $400 million remaining).
Management expects to address remaining convertible debt this or next quarter.
Capital expenditure remains disciplined at 4%-6% of revenue, aimed at HAMR transition and ramp.
Free cash flow generation is strong, with $953 million in the March quarter.

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Order Book & Pipeline

Order book rising

The majority of Seagate's nearline capacity is allocated through the next 4 quarters, indicating a high percentage of orders locked in for fiscal 2027.
The company has finalized build-to-order contracts with major cloud and hyperscale customers through the end of fiscal 2027, defining specific configurations and pricing.
Nearline capacity is almost fully allocated through calendar 2027 under Exabyte scale supply agreements.
Seagate is actively engaged in strategic planning discussions extending into calendar 2028 and beyond.

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Frequently Asked Questions

What were Seagate Technology Holdings plc Q2 FY26 results?

- Seagate projects strong, structural growth driven by durable demand and increased adoption of Mozaic-based HAMR products. - Seagate expects continued quarterly revenue growth and margin expansion through fiscal 2027, driven by profitable revenue growth and product strategy focused on significant market opportunities.

What is Seagate Technology Holdings plc share price analysis?

Seagate Technology Holdings plc currently shows a moderate growth signal based on ranking data. The stock trades at a P/E of 80.0 with a market cap of $197,483. Investors should review the full earnings analysis for detailed insights.

Is Seagate Technology Holdings plc planning capital expenditure?

- Capital expenditures for the March quarter were $151 million, about 4% of revenue year-to-date.

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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.