Seagate Technology (STX) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 ended with record financial performance, including double-digit sequential and year-over-year growth in revenue and profitability, driven by strong demand for mass capacity storage, especially from cloud and data center customers.

• Non-GAAP gross margin expanded for the 13th consecutive quarter, reaching 52.7% in Q4FY26, and free cash flow margins hit 31%, totaling over $1.1 billion in the June quarter, the highest in over a decade.

• Fiscal year 2026 revenue grew 34% to $12.2 billion, with record profitability and free cash flow of $3.1 billion, driven by robust cloud and data center demand and disciplined execution.

• Management highlights durable long-term demand for mass capacity storage, supported by AI-driven data growth and differentiated technology (HAMR/Mozaic platform).

Financial highlights

• June quarter revenue was $3.6 billion, up 17% sequentially and 48% year-over-year, exceeding guidance; fiscal year revenue was $12.2 billion, up 34% year-over-year.

• Non-GAAP gross margin reached 52.7%, up 570 bps sequentially; non-GAAP operating margin was 44.6%, up 710 bps sequentially.

• Non-GAAP EPS was $5.71 in Q4FY26, up 39% quarter-over-quarter and 121% year-over-year; fiscal year non-GAAP EPS was $15.58.

• Free cash flow for the quarter was $1.1 billion; fiscal year free cash flow totaled $3.1 billion.

• Net income for Q4 2026 was $1.29 billion (GAAP), up from $488 million year-over-year; annual net income was $3.18 billion (GAAP), up from $1.47 billion.

Outlook and guidance

• Fiscal 2027 revenue growth is expected to outpace fiscal 2026, with sequential margin and cash generation growth anticipated throughout the year.

• September quarter (Q1FY27) revenue guidance is $4.1 billion ± $100 million, a 56% year-over-year increase at the midpoint; non-GAAP EPS guidance is $7.30 ± $0.20; non-GAAP operating margin expected around 50%.

• Capital expenditures for fiscal 2027 projected to remain within 4%-6% of revenue.

• Guidance includes estimated net dilutive impact from 2028 Exchangeable Senior Notes and minimal expected impact from global tariffs or Middle East conflict.