US Market News
4週前
Seagate Announces Redemption of Exchangeable NotesJune 11, 2026 6:22 PM
Business Wire Seagate Technology Holdings plc (NASDAQ: STX) (“Seagate” or “Company”) and Seagate HDD Cayman, a subsidiary of Seagate (“Seagate HDD”), today announced that Seagate HDD has issued a notice to holders of Seagate HDD’s 3.50% Exchangeable Senior Notes due 2028 (the “notes”) calling for redemption (the “redemption”) of all outstanding notes. On September 8, 2026 (the “redemption date”), all then-outstanding notes that are called for redemption and have not been submitted for exchange will be redeemed for cash at a price (the “redemption price”) equal to the principal amount of such notes plus accrued and unpaid interest on such notes to, but excluding, the redemption date. On the redemption date, the redemption price will become due and payable upon each note to be redeemed and interest thereon will cease to accrue on and after the redemption date (unless Seagate HDD fails to pay the redemption price due on the redemption date in full, in which case interest thereon will continue to accrue until such time as Seagate HDD pays such redemption price in full). The notes may be exchanged by holders at any time before 5:00 p.m. (New York City time) on September 3, 2026 (the “exchange deadline”) (or, if Seagate HDD fails to pay the redemption price due on the redemption date in full, at any time until such time as Seagate HDD pays such redemption price in full). The exchange rate for notes exchanged after today and through the exchange deadline is currently equal to 12.1363 ordinary shares of Seagate, par value $0.00001 per share (the “ordinary shares”), per $1,000 principal amount of the notes, and will be adjusted on June 25, 2026 as a result of the Company’s previously announced dividend of $0.74 per ordinary share pursuant to Section 7.05(d) of the indenture governing the notes, dated as of September 13, 2023 among Seagate HDD, the Company, Seagate Technology Unlimited Company and Computershare Trust Company, National Association, as trustee. The principal amount of any notes submitted for exchange shall be paid in cash, and Seagate HDD has elected to settle the remainder of its exchange obligations in excess of the principal amount for notes exchanged after today and through the exchange deadline by delivering ordinary shares, together with cash, if applicable, in lieu of delivering any fractional ordinary shares. The notes called for redemption must be delivered to the paying agent (in the case of physical notes) or in compliance with the rules and procedures of DTC (in the case of global notes) to receive the redemption price. The name and address of the paying agent and the exchange agent to surrender the Notes (CUSIP: 81180WBL4) is: Registered & Certified Mail: Regular Mail or Courier: In Person by Hand Only: Computershare Trust Company, N.A. CTSO Mail Operations 1505 Energy Park Drive St. Paul, MN 55108 Computershare Trust Company, N.A. CTSO Mail Operations 1505 Energy Park Drive St. Paul, MN 55108 Computershare Trust Company, N.A. CTSO Mail Operations 1505 Energy Park Drive St. Paul, MN 55108 Holders who have questions or who wish to discuss the redemption may contact Computershare Trust Company, N.A. by telephone at 1-800-344-5128 or by email at cctbondholdercommunications@computershare.com. Please refer to the CUSIP number (CUSIP: 81180WBL4) when making inquiries to the paying agent and the exchange agent. Seagate HDD expects to eliminate approximately $150.7 million of debt, which represents all currently outstanding notes that have not been submitted for exchange, through a combination of voluntary exchanges by noteholders and Seagate HDD’s redemption of any notes that have not been exchanged through the redemption date. About Seagate Seagate (NASDAQ: STX) is a pioneer in mass-capacity data storage, accelerating ability to harness the full value of data. Our portfolio of advanced storage solutions helps hyperscale cloud providers, enterprises, and consumers protect, create and manage the data that powers their transformation and growth. For more than 45 years, Seagate has driven breakthrough innovations that bring sustainable, high-performance storage to the world at-scale. © 2026 Seagate Technology LLC. All rights reserved. Seagate, Seagate Technology, and the Spiral logo are registered trademarks of Seagate Technology LLC in the United States and/or other countries. Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical fact. Forward-looking statements include, among other things, statements about the planned redemption of the notes. Forward-looking statements generally can be identified by words such as “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “should,” “may,” “will,” “will continue,” “can,” “could,” or the negative of these words, variations of these words and comparable terminology, in each case, intended to refer to future events or circumstances. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Forward-looking statements are based on information available to the Company as of the date of this press release and are subject to known and unknown risks and uncertainties that could cause the Company’s actual results, performance or events to differ materially from historical experience and the Company’s present expectations or projections. These risks and uncertainties include, but are not limited to, those described under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s latest periodic report on Form 10-Q or Form 10-K filed with the SEC. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on, and which speak only as of, the date hereof. The Company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, unless required by applicable law. View source version on businesswire.com: https://www.businesswire.com/news/home/20260610272884/en/ Investor Relations Contact:
Shanye Hudson, (510) 661-1600
shanye.hudson@seagate.com Media Contact:
Carrie Schafer, (303) 941-9470
Carrie.schafer@seagate.com Original: Seagate Announces Redemption of Exchangeable Notes
US Market News
2月前
Seagate Technology Reports Fiscal Third Quarter 2026 Financial ResultsApril 28, 2026 4:05 PM
Business Wire
Fiscal Q3 2026 Highlights
Revenue of $3.11 billion
GAAP gross margin of 46.5%; non-GAAP gross margin of 47.0%
GAAP diluted earnings per share (EPS) of $3.27; non-GAAP diluted EPS of $4.10
Cash flow from operations of $1.1 billion and free cash flow of $953 million
Retired $641 million in debt and returned $191 million to shareholders through dividends and share repurchases
Seagate Technology Holdings plc (NASDAQ: STX) (the “Company” or “Seagate”), a leading innovator of mass-capacity data storage, today reported financial results for its fiscal third quarter ended April 3, 2026.
“Seagate delivered outstanding March quarter results, exceeding the high end of our revenue and EPS guidance, achieving record margin performance, and generating close to $1 billion in free cash flow,” said Dave Mosley, Seagate’s chair and chief executive officer.
“We believe Seagate is entering a new era of structural growth as AI applications amplify data creation and support sustained storage demand. Our areal density-driven product strategy enables us to deliver higher-capacity, energy- and capital-efficient storage at scale. Through disciplined execution, we are strategically positioned to capture these opportunities, and drive profitable growth and long-term value creation,” Mosley concluded.
Quarterly Financial Results
GAAP
Non-GAAP
FQ3 2026
FQ3 2025
FQ3 2026
FQ3 2025
Revenue ($M)
$
3,112
$
2,160
$
3,112
$
2,160
Gross Margin
46.5
%
35.2
%
47.0
%
36.2
%
Operating Margin
32.1
%
20.0
%
37.5
%
23.5
%
Net Income ($M)
$
748
$
340
$
934
$
407
Diluted Earnings Per Share
$
3.27
$
1.57
$
4.10
$
1.90
For definitions and a detailed reconciliation of GAAP to non-GAAP results, see accompanying financial tables.
During the fiscal third quarter, the Company generated $1.1 billion in cash flow from operations and $953 million in free cash flow. Seagate’s balance sheet remains healthy, and during the fiscal third quarter, the Company retired approximately $641 million in debt and returned $191 million to shareholders through dividends and share repurchases. As of the end of the quarter, cash and cash equivalents totaled $1.1 billion, and there were 224 million ordinary shares issued and outstanding.
Seagate has issued a Supplemental Financial Information document, which is available on Seagate’s Investor Relations website at investors.seagate.com.
Quarterly Cash Dividend
The Board of Directors of the Company (the “Board”) declared a quarterly cash dividend of $0.74 per share, which will be payable on July 7, 2026 to shareholders of record as of the close of business on June 24, 2026. The payment of any future quarterly dividends will be at the discretion of the Board and will be dependent upon Seagate’s financial position, results of operations, available cash, cash flow, capital requirements and other factors deemed relevant by the Board.
Business Outlook
The business outlook for the fiscal fourth quarter 2026 is based on our current assumptions and expectations; actual results may differ materially as a result of, among other things, the important factors discussed in the Cautionary Note Regarding Forward-Looking Statements section of this release.
The Company is providing the following guidance for its fiscal fourth quarter 2026:
Revenue of $3.45 billion, plus or minus $100 million
Non-GAAP diluted EPS of $5.00, plus or minus $0.20
Our fiscal fourth quarter guidance includes:
The estimated net dilutive impact from the Exchangeable Senior Notes due 2028; and
Minimal expected impact from global tariff policies and/or the current conflict in the Middle East as of the date of this release.
Guidance regarding non-GAAP diluted EPS excludes known pre-tax charges related to estimated share-based compensation expenses of $0.23 per share.
We have not reconciled our non-GAAP diluted EPS guidance for fiscal fourth quarter 2026 to the most directly comparable GAAP measure, other than estimated share-based compensation expenses, because material items that may impact these measures are out of our control and/or cannot be reasonably predicted, including, but not limited to, net (gain) loss from debt transactions, strategic investment losses (gains) or impairment charges, income tax adjustments on these measures, and other charges or benefits that may arise. The amounts of these measures are not currently available but may be material to future results. A reconciliation of our historical non-GAAP financial measures to their nearest GAAP equivalent is contained in this release.
Investor Communications
Seagate management will hold a public webcast at 2:00 PM PT / 5:00 PM ET on April 28, 2026 that can be accessed on its Investor Relations website at investors.seagate.com.
An archived audio webcast of this event will be available on Seagate’s Investor Relations website at investors.seagate.com shortly following the event conclusion.
About Seagate Technology
Seagate (NASDAQ: STX) is a pioneer in mass-capacity data storage, accelerating ability to harness the full value of data. Our portfolio of advanced storage solutions helps hyperscale cloud providers, enterprises, and consumers protect, create and manage the data that powers their transformation and growth. For more than 45 years, Seagate has driven breakthrough innovations that bring sustainable, high-performance storage to the world at-scale. Learn more at www.seagate.com, and follow us on LinkedIn, YouTube, X and Facebook.
© 2026 Seagate Technology LLC. All rights reserved. Seagate, Seagate Technology, and the Spiral logo are registered trademarks of Seagate Technology LLC in the United States and/or other countries.
Cautionary Note Regarding Forward-Looking Statements
This press release and our other communications regarding our quarterly financial results contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical fact. Forward-looking statements include, among other things, statements about the Company’s plans, programs, strategies, prospects, and opportunities; financial outlook for future periods, including the fiscal fourth quarter 2026; expectations regarding our ability to service debt and continue to generate free cash flow; expectations regarding our ability to make timely quarterly payments under the settlement agreement with the U.S. Department of Commerce’s Bureau of Industry and Security; expectations regarding logistical, macroeconomic, or other factors affecting the Company, including uncertainty related to tariffs, trade restrictions, or evolving global trade policy; expectations regarding market demand for the Company’s products, our visibility into such demand and our ability to optimize our level of production and meet market and industry expectations and the effects of these future trends on Company’s financial and operational performance, including our ability to deliver profitable growth; anticipated shifts in technology and storage industry trends, and anticipated demand and performance of new storage product introductions, including HAMR-based Mozaic products; our ability to successfully integrate acquisitions with our existing business; and expectations regarding the Company’s business strategy and performance, as well as dividend issuance plans for the fiscal quarter ending July 3, 2026 and beyond. Forward-looking statements generally can be identified by words such as “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “should,” “may,” “will,” “will continue,” “can,” “could” or the negative of these words, variations of these words and comparable terminology, in each case, intended to refer to future events or circumstances. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Forward-looking statements are subject to various uncertainties and risks that could cause our actual results to differ materially from historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s latest periodic report on Form 10-Q or Form 10-K filed with the U.S. Securities and Exchange Commission. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on, and which speak only as of, the date hereof. The Company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, unless required by applicable law.
The inclusion of Seagate’s website addresses in this press release are provided for convenience only. The information contained in, or that can be accessed through, Seagate’s websites and social media channels are not part of this press release.
SEAGATE TECHNOLOGY HOLDINGS PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
April 3, 2026
June 27, 2025
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
1,146
$
891
Accounts receivable, net
1,197
959
Inventories, net
1,530
1,440
Other current assets
426
363
Total current assets
4,299
3,653
Property, equipment and leasehold improvements, net
1,852
1,657
Goodwill
1,221
1,221
Deferred income taxes
1,099
1,066
Other assets, net
421
426
Total Assets
$
8,892
$
8,023
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable
$
1,694
$
1,604
Accrued employee compensation
308
352
Accrued warranty
70
60
Current portion of long-term debt
398
—
Accrued expenses
771
632
Total current liabilities
3,241
2,648
Long-term accrued warranty
109
77
Other non-current liabilities
982
756
Long-term debt, less current portion
3,465
4,995
Total Liabilities
7,797
8,476
Total Shareholders’ Equity (Deficit)
1,095
(453
)
Total Liabilities and Shareholders’ Equity (Deficit)
$
8,892
$
8,023
SEAGATE TECHNOLOGY HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
(Unaudited)
For the Three Months Ended
For the Nine Months Ended
April 3, 2026
March 28, 2025
April 3, 2026
March 28, 2025
Revenue
$
3,112
$
2,160
$
8,566
$
6,653
Cost of revenue
1,665
1,400
4,906
4,367
Product development
194
180
567
545
Marketing and administrative
143
139
430
407
Legal settlement
105
—
105
—
Restructuring and other, net
7
10
23
12
Total operating expenses
2,114
1,729
6,031
5,331
Income from operations
998
431
2,535
1,322
Interest income
6
4
20
19
Interest expense
(68
)
(77
)
(220
)
(246
)
Net loss from debt transactions
(69
)
(4
)
(141
)
(4
)
Other, net
(3
)
1
(9
)
(70
)
Other expense, net
(134
)
(76
)
(350
)
(301
)
Income before income taxes
864
355
2,185
1,021
Provision for income taxes
116
15
295
40
Net income
$
748
$
340
$
1,890
$
981
Net income per share:
Basic
$
3.38
$
1.60
$
8.71
$
4.65
Diluted
$
3.27
$
1.57
$
8.29
$
4.52
Number of shares used in per share calculations:
Basic
221
212
217
211
Diluted
229
216
228
217
Cash dividends declared per ordinary share
$
0.74
$
0.72
$
2.20
$
2.14
SEAGATE TECHNOLOGY HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
For the Nine Months Ended
April 3, 2026
March 28, 2025
OPERATING ACTIVITIES
Net income
$
1,890
$
981
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
206
190
Share-based compensation
159
141
Net loss from debt transactions
141
4
Deferred income taxes
(33
)
8
Other non-cash operating activities, net
44
109
Changes in operating assets and liabilities:
Accounts receivable, net
(238
)
(193
)
Inventories, net
(90
)
(233
)
Accounts payable
89
(331
)
Accrued employee compensation
(62
)
116
Accrued expenses, income taxes and warranty
346
(117
)
Other assets and liabilities
(83
)
(100
)
Net cash provided by operating activities
2,369
575
INVESTING ACTIVITIES
Acquisition of property, equipment and leasehold improvements
(382
)
(182
)
Proceeds from the sale of assets
—
1
Purchases of investments
(2
)
—
Proceeds from sale of investments
—
10
Proceeds from business divestiture
15
25
Net cash used in investing activities
(369
)
(146
)
FINANCING ACTIVITIES
Redemption and repurchase of debt
(1,142
)
(531
)
Dividends to shareholders
(468
)
(447
)
Taxes paid related to net share settlement of equity awards
(111
)
(44
)
Repurchases of ordinary shares
(59
)
—
Proceeds from issuance of ordinary shares under employee stock plans
54
56
Other financing activities, net
(20
)
(7
)
Net cash used in financing activities
(1,746
)
(973
)
Increase (decrease) in cash, cash equivalents and restricted cash
254
(544
)
Cash, cash equivalents and restricted cash at the beginning of the period
893
1,360
Cash, cash equivalents and restricted cash at the end of the period
$
1,147
$
816
Use of non-GAAP financial information
The Company uses non-GAAP measures of gross profit, gross margin, operating expenses, income from operations, operating margin, net income, diluted EPS, free cash flow, EBITDA, adjusted EBITDA and last twelve months adjusted EBITDA, which are adjusted from results based on GAAP to exclude certain benefits, expenses, gains and losses. These non-GAAP financial measures are used by management to evaluate the business and provided to enhance the user’s overall understanding of the Company’s current financial performance and its prospects for the future. Specifically, the Company believes non-GAAP results provide useful information to investors as these non-GAAP results exclude certain benefits, expenses, gains and losses that the Company believes are not part of the Company's ongoing operations and not indicative of its core operating results.
These non-GAAP financial measures are some of the measurements management uses to assess the Company’s performance, allocate resources and plan for future periods. Reported non-GAAP results should only be considered as supplemental to results prepared in accordance with GAAP, and not considered as a substitute or replacement for, or superior to, GAAP results. These non-GAAP measures may differ from the non-GAAP measures reported by other companies in its industry.
SEAGATE TECHNOLOGY HOLDINGS PLC
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES
(In millions, except per share amounts, gross margin and operating margin)
(Unaudited)
For the Three Months Ended
For the Nine Months Ended
April 3, 2026
March 28, 2025
April 3, 2026
March 28, 2025
GAAP Gross Profit
$
1,447
$
760
$
3,660
$
2,286
Amortization of acquired intangible assets
2
—
7
—
Purchase order cancellation fees
—
(3
)
—
(4
)
Restructuring and other, net1
—
10
—
10
Share-based compensation
14
14
41
37
Non-GAAP Gross Profit
$
1,463
$
781
$
3,708
$
2,329
GAAP Gross Margin
46.5
%
35.2
%
42.7
%
34.4
%
Non-GAAP Gross Margin
47.0
%
36.2
%
43.3
%
35.0
%
GAAP Operating Expenses
$
449
$
329
$
1,125
$
964
Acquisition-related charges
—
(5
)
(1
)
(5
)
Legal settlement
(105
)
—
(105
)
—
Restructuring and other, net1
(7
)
(10
)
(23
)
(12
)
Share-based compensation
(40
)
(40
)
(118
)
(104
)
Other charges
(1
)
—
(1
)
(1
)
Non-GAAP Operating Expenses
$
296
$
274
$
877
$
842
GAAP Income From Operations
$
998
$
431
$
2,535
$
1,322
Acquisition-related charges
—
5
1
5
Amortization of acquired intangible assets
2
—
7
—
Legal settlement
105
—
105
—
Purchase order cancellation fees
—
(3
)
—
(4
)
Restructuring and other, net1
7
20
23
22
Share-based compensation
54
54
159
141
Other charges
1
—
1
1
Non-GAAP Income From Operations
$
1,167
$
507
$
2,831
$
1,487
GAAP Operating Margin
32.1
%
20.0
%
29.6
%
19.9
%
Non-GAAP Operating Margin
37.5
%
23.5
%
33.0
%
22.4
%
GAAP Net Income
$
748
$
340
$
1,890
$
981
Acquisition-related charges
—
5
1
5
Amortization of acquired intangible assets
2
—
7
—
Legal settlement
105
—
105
—
Net loss (gain) from business divestiture
3
(8
)
3
(8
)
Net loss from debt transactions
69
4
141
4
Purchase order cancellation fees
—
(3
)
—
(4
)
Restructuring and other, net1
7
20
23
22
Share-based compensation
54
54
159
141
Strategic investment losses or impairment charges
—
—
—
53
Other charges
1
—
1
1
Income tax adjustments
(55
)
(5
)
(111
)
(18
)
Non-GAAP Net Income
$
934
$
407
$
2,219
$
1,177
GAAP Diluted Net Income Per Share
$
3.27
$
1.57
$
8.29
$
4.52
Acquisition-related charges
—
0.02
—
0.02
Amortization of acquired intangible assets
0.01
—
0.03
—
Legal settlement
0.46
—
0.46
—
Net loss (gain) from business divestiture
0.01
(0.04
)
0.01
(0.04
)
Net loss from debt transactions
0.30
0.02
0.62
0.02
Purchase order cancellation fees
—
(0.01
)
—
(0.02
)
Restructuring and other, net1
0.03
0.09
0.10
0.10
Share-based compensation
0.24
0.25
0.70
0.65
Strategic investment losses or impairment charges
—
—
—
0.24
Other charges
—
—
—
—
Income tax adjustments
(0.24
)
(0.02
)
(0.49
)
(0.08
)
Non-GAAP diluted share count adjustments2
0.02
0.02
0.09
0.12
Non-GAAP Diluted Net Income Per Share2
$
4.10
$
1.90
$
9.81
$
5.53
Shares Used In Diluted Net Income Per Share Calculation
GAAP
229
216
228
217
Non-GAAP diluted share count adjustments2
(1
)
(2
)
(2
)
(4
)
Non-GAAP
228
214
226
213
GAAP Net Cash Provided by Operating Activities
$
1,114
$
259
$
2,369
$
575
Acquisition of property, equipment and leasehold improvements
(161
)
(43
)
(382
)
(182
)
Free Cash Flow
$
953
$
216
$
1,987
$
393
SEAGATE TECHNOLOGY HOLDINGS PLC
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES
(In millions)
(Unaudited)
For the Three Months Ended
April 3,
2026
January 2,
2026
October 3,
2025
June 27,
2025
Last Twelve
Months
GAAP Net Income
$
748
$
593
$
549
$
488
$
2,378
Depreciation and amortization
66
68
72
61
267
Interest expense
68
72
80
75
295
Interest income
(6
)
(7
)
(7
)
(6
)
(26
)
Income tax expense
116
114
65
4
299
Non-GAAP EBITDA
992
840
759
622
3,213
Acquisition-related charges
—
—
1
2
3
Legal settlement
105
—
—
—
105
Net loss from business divestiture
3
—
—
—
3
Net loss from debt transactions
69
66
6
3
144
Purchase order cancellation fees
—
—
—
(5
)
(5
)
Restructuring and other, net
7
3
13
16
39
Share-based compensation
54
53
52
59
218
Other charges
1
—
—
—
1
Non-GAAP Adjusted EBITDA
$
1,231
$
962
$
831
$
697
$
3,721
1 The Company recorded $20 million of restructuring charges in the three months ended March 28, 2025, of which $10 million was recorded to Cost of revenue and $10 million was recorded to Restructuring and other, net, within Operating expenses.
2 For the three and nine months ended April 3, 2026, and the three and nine months ended March 28, 2025, using the if-converted method, approximately 4 million, 7 million, 2 million and 4 million shares, respectively, are issuable upon conversion of our 2028 exchangeable senior notes. These dilutive effects are expected to be offset partially by the capped call transactions and are excluded from non-GAAP shares used in diluted net income per share calculation.
The Company’s Non-GAAP measures are adjusted for the following items:
Acquisition-related charges
Acquisition-related charges are primarily related to transaction and integration costs. These expenses are excluded in the non-GAAP measures due to the inconsistency in amount and frequency, and they are not normal operating expenses or indicative of the Company's operating performance. Exclusion of these amounts provides a supplemental view of the Company's operating performance to investors to enable them to evaluate the Company's current operating performance compared to the past periods' operating performance.
Amortization of acquired intangible assets
The Company records expense from amortization of intangible assets that were acquired in connection with its business combinations over their estimated useful lives. Such charges are inconsistent in size and are significantly impacted by the timing and magnitude of the Company’s acquisitions. Consequently, the Company excludes these amounts to provide a supplemental view to investors to evaluate the Company's current operating performance compared to the past periods' operating performance.
Legal settlement
From time to time, the Company incurs charges related to the settlement of litigation matters. These charges are inconsistent in amount and frequency and are excluded from the Company’s non-GAAP measures to provide a supplemental view to investors to evaluate the Company's current operating performance compared to the past periods' operating performance.
Net gain/loss from business divestiture
From time to time, the Company records net gains or losses from the sale of businesses. These net gains are excluded in the non-GAAP measures because they are not indicative of the Company's operating performance. The Company excludes these amounts to provide a supplemental view to investors to evaluate the Company's current operating performance compared to the past periods' operating performance.
Net gain/loss from debt transactions
From time to time, the Company incurs gains, losses and fees from the early redemption and repurchase of certain long-term debt instruments. The amount of these charges may be inconsistent in size and varies depending on the timing of the early redemption of debt. The Company does not believe these are part of its normal operating performance. Exclusion of these amounts provides a supplemental view of the Company's operating performance to investors to enable them to evaluate the Company's current operating performance compared to the past periods' operating performance.
Purchase order cancellation fees
Purchase order cancellation fees are the costs incurred to cancel certain purchase commitments made with the Company's suppliers for component and equipment purchases that will not be received due to change in forecasted demand. These charges and subsequent credits received are inconsistent in amount and frequency. The Company does not believe these are part of its normal operating expenses. Exclusion of these amounts provides a supplemental view to investors to evaluate the Company's current operating performance compared to the past periods’ operating performance.
Restructuring and other, net
Restructuring and other, net are costs associated with restructuring plans that are primarily related to costs associated with reduction in the Company’s workforce, exiting certain facilities, inventory write down related to discontinued product lines and other related costs, as well as charges or gains from sale of properties. These costs or benefits do not reflect the Company’s normal or ongoing operating performance and consequently the Company excludes these expenses to provide a supplemental view to investors to evaluate the Company's current operating performance compared to the past periods’ operating performance.
Share-based compensation
These expenses consist primarily of expenses for employee share-based compensation. Given the variety of equity awards used by companies, the varying methodologies for determining share-based compensation expense, the subjective assumptions involved in those determinations, and the volatility in valuations that can be driven by market conditions outside the Company’s control, the Company believes excluding share-based compensation expense enhances the ability of management and investors to understand and assess the underlying performance of its business over time and compare it against the Company’s peers, a majority of whom also exclude share-based compensation expense from their non-GAAP results.
Strategic investment gains, losses and impairment charges
From time to time, the Company incurs gains, losses or impairment charges from strategic investments that are measured and accounted at fair value, under the equity method of accounting, as available-for-sale debt securities or adjust for downward or upward adjustments to the carrying value under the measurement alternative if an impairment or observable price adjustment is recognized in the current period that are not considered normal operating expenses or gains. The resulting expense, gain or impairment loss is inconsistent in amount and frequency, and the Company excludes these amounts to provide a supplemental view to investors to evaluate the Company's current operating performance compared to the past periods’ operating performance.
Other charges
The other charges primarily include IT transformation costs. These charges are inconsistent in amount and frequency and are excluded to provide a supplemental view to investors to evaluate the Company's current operating performance compared to past periods’ operating performance.
Income tax adjustments
Seagate utilizes a projected annual non-GAAP income tax rate to determine its non-GAAP income taxes. The annual non-GAAP tax rate is based on considerations such as its current tax structure, projected tax positions and impacts from key legislation implemented in various jurisdictions but excludes the tax effects of pre-tax non-GAAP adjustments and other significant non-recurring income tax items. The Company believes applying the non-GAAP tax rate provides consistency across the interim reporting periods and reduces the effects of items not directly related to its operating structure that can vary in size and frequency. The non-GAAP income tax rate could be subject to change for a variety of reasons, including significant changes in tax laws. The Company will re-evaluate periodically its non-GAAP tax rate and may adjust as appropriate. For fiscal year 2026, the Company uses a projected non-GAAP income tax rate of 15.5%.
Non-GAAP diluted share count adjustments
Using the if-converted method, diluted net income per share is calculated assuming that the excess value above the principal of the 2028 exchangeable notes were converted solely into shares of common stock at the beginning of the reporting period, unless the result would be anti-dilutive. Non-GAAP shares used in diluted net income per share calculation excluded certain dilutive shares, which are expected to be offset partially by the capped call transactions entered by the Company in conjunction with our 2028 exchangeable senior notes in order to reduce the potential dilution to the Company’s ordinary shares upon the conversion.
Free cash flow
Free cash flow is a non-GAAP measure defined as net cash provided by operating activities less acquisition of property, equipment and leasehold improvements. Free cash flow does not reflect non-cash items, net cash used or provided by financing activities and net cash used or provided by investing activities, other than acquisition of property, equipment and leasehold improvements. This non-GAAP financial measure is used by management to assess the Company's sources of liquidity, capital structure and operating performance.
EBITDA, adjusted EBITDA and last twelve months (LTM) adjusted EBITDA
EBITDA is defined as net income before income tax expense, interest expense, interest income, depreciation and amortization. Adjusted EBITDA excludes certain expenses, gains and losses that the Company believes are not indicative of its core operating results. These adjustments primarily include impairment and other charges related to cost saving efforts, net loss (gain) from debt transactions, net loss (gain) from business divestiture, purchase order cancellation fees, restructuring and other, net, share-based compensation, strategic investment losses or impairment charges, other extraordinary charges such as factory underutilization charges. LTM adjusted EBITDA is defined as the total of last twelve months adjusted EBITDA. These non-GAAP financial measures are used by management to evaluate the Company’s debt portfolio and structure to comply with its financial debt covenants.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260428855920/en/
Investor Relations Contact:
Shanye Hudson, (510) 661-1600
shanye.hudson@seagate.com
Media Contact:
Karin Taylor, (408) 772-8279
karin.h.taylor@seagate.com
Original: Seagate Technology Reports Fiscal Third Quarter 2026 Financial Results
US Market News
3月前
Seagate Introduces Storage Built for Consumer Data ExplosionApril 23, 2026 6:01 AM
Business Wire
New consumer storage solutions deliver higher capacities, pro-grade reliability and scalable performance for everyday backup, gaming expansion and AI-driven creative workflows
Seagate Technology Holdings plc (NASDAQ: STX) today announced new and refreshed consumer and prosumer storage solutions across its Seagate, FireCuda, and LaCie brands, including the Seagate One Touch desktop external hard drive, the Seagate FireCuda X Vault hard drive, and the LaCie 8big Pro5 multi-bay RAID storage solution.
Designed to support sustained data growth created at the point of capture, the portfolio provides flexible storage options ideal for higher resolution photos and videos, expanding game libraries and demanding creative workflows as more and more creators adopt AI content development platforms. As files grow larger and live longer, the updated portfolio delivers a simplified operational experience, higher capacities, and scalable performance, helping users stay productive and in control of their data without compromising performance or scalability.
Portfolio highlights:
Higher capacity options across portable, desktop and RAID storage, scaling up to 256TB
Industry’s only bus-powered USB-C for desktop hard drives, requiring no external power supply
Thunderbolt™ 5 support for high-performance creative workflows
Integrated backup, monitoring, and Rescue Data Recovery Service, designed for long-term peace of mind
Seagate Toolkit, user-friendly auto backup to secure all those important files and data
“From AI-assisted creativity to massive game libraries and family memories, personal data is growing faster and lasting longer,” said Lance Ohara, VP, Edge IoT at Seagate. “People need storage that’s designed for this new reality — simple to use, built to scale, and ready for what AI brings next.”
Seagate One Touch: everyday convenient backup made easy
Best for: everyday backup and personal use.
The Seagate One Touch desktop external hard drive offers straightforward, high-capacity storage designed for easy setup and long-term file management — without added hardware complexity or reliance on cloud subscriptions. A single-cable USB-C connection provides both power and data, eliminating the need for external power adapters and reducing desktop clutter.
Capacities: 8TB, 20TB, 24TB
Bus-powered 3.5-inch USB-C desktop drive with single cable connectivity
Drag-and-drop setup and file transfers
Cross-platform compatibility with Windows and Mac
Includes Seagate Toolkit, auto backup software and Rescue Data Recovery Services for added peace-of-mind
Seagate FireCuda X Vault: High-capacity expansion for gaming and streaming setups
Best for: gamers and streamers.
Modern game libraries, captured gameplay, and streaming content demand large amounts of storage. FireCuda X Vault is built to complement internal performance drives, providing high-capacity desktop storage optimized for organizing large game libraries and archived content. Using the same bus-powered USB-C design, FireCuda X Vault enables simple, plug-and-play expansion without wall power.
Capacities: 8TB, 20TB
Bus-powered, single-cable USB-C desktop storage, no external power required. Complements internal NVMe performance drives
Customizable RGB lighting with Windows Dynamic Lighting support
Includes Rescue Data Recovery Services, Xbox on PC certification, and Xbox Game Pass trial
LaCie 8big Pro5: Professional RAID storage for advanced creative workflows
Best for: creative professionals and production teams.
The LaCie 8big Pro5 is a Thunderbolt™ 5 multi-bay RAID storage solution built for creative professionals working with multi-stream 4K/8K video, large RAW image libraries, and AI-assisted production environments. With high-capacity configurations, fast data transfer speeds, and enterprise-class reliability, it enables teams to work at scale in studio or on-location environments.
Capacities: 32TB, 64TB, 128TB, 192TB, 256TB
Multiple RAID configurations for speed or redundancy, Thunderbolt™ 5 performance (up to 120Gbps) Up to 2800MB/s (RAID 0) performance
Up to 140W power delivery for laptops
Includes RAID Manager and 5-year limited warranty with Rescue Data Recovery Services
Availability:
Seagate One Touch is available now. The Seagate One Touch 8TB can now be purchased through the Seagate Store and authorized partners starting at $259.99.
FireCuda X Vault is available now through the Seagate Store and authorized partners starting at $269.99.
LaCie 8big Pro5 is available now through the Seagate Store and authorized partners starting at $5,979.
Media Assets:
For more information, please reference the Seagate One Touch Data Sheet, the FireCuda X Vault Data Sheet, and the LaCie 8big Pro5 Data Sheet.
About Seagate Technology
Seagate (NASDAQ: STX) is a pioneer in mass-capacity data storage, accelerating ability to harness the full value of data. Our portfolio of advanced storage solutions helps hyperscale cloud providers, enterprises, and consumers protect, create and manage the data that powers their transformation and growth. For more than 45 years, Seagate has driven breakthrough innovations that bring sustainable, high-performance storage to the world at-scale. Learn more at www.seagate.com, and follow us on LinkedIn, YouTube, X and Facebook.
©2026 Seagate Technology LLC. All rights reserved. Seagate, Seagate Technology, Mozaic, Exos, and the Spiral logo are trademarks or registered trademarks of Seagate Technology LLC in the United States and/or other countries. All other trademarks or registered trademarks are the property of their respective owners. When referring to drive capacity, one gigabyte, or GB, equals one billion bytes, one terabyte, or TB, equals one trillion bytes, and one exabyte, or EB, equals one quintillion bytes.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260423836765/en/
For More Information Contact:
Erin Lundberg
erin.lundberg@edelman.com
Original: Seagate Introduces Storage Built for Consumer Data Explosion
US Market News
4月前
Seagate Delivers Industry’s Highest Capacity Hard Drives with Next-Generation Mozaic™ 4+March 3, 2026 2:45 PM
Business Wire
Industry’s only HAMR-based platform supports economic viability of AI-scale data growth
As technology innovation accelerates both data creation and value, the need for scalable, efficient, high-performance storage solutions has never been greater. Today, Seagate Technology (NASDAQ: STX) announced its next-generation Mozaic™ 4+ platform, the industry’s only heat-assisted magnetic recording (HAMR)–based storage platform deployed at-scale, is now qualified and in production with two leading hyperscale cloud providers. Supporting capacities up to 44TB, these qualifications reflect production-scale deployments in hyperscale environments.
With additional customer qualifications under way, Seagate is delivering on its roadmap to scale from today’s 4+TB per-disk toward a future 10TB per-disk – enabling hard drive capacities of up to 100TB. The platform incorporates a next-generation suspension architecture and an enhanced system-on-a-chip that enables precise recording at higher densities while maintaining enterprise-class reliability. Each platform generation allows continued gains in capacity without requiring disruptive architectural shifts.
"Data has become one of the most valuable assets for enterprises, fueling business insights, enhancing productivity, and enabling competitive advantage. As the foundation of modern data center infrastructure, data storage solutions are essential to manage ever-increasing data volumes and maximize returns on investments in today’s AI driven-world," said Dave Mosley, Seagate’s chair and chief executive officer. "Seagate’s HAMR-based Mozaic products deliver the scale, performance, and efficiency customers need to unlock the full potential of their data."
With a majority of the world’s largest cloud storage providers already qualified on Seagate’s Mozaic platform, this milestone underscores the platform’s critical role in data center infrastructure.
Production-Scale HAMR with Vertically Integrated Photonics
Seagate’s custom-designed and manufactured laser technology reflects years of investment in nanophotonic engineering of critical components used in HAMR recording. This vertically integrated, in-house innovation strengthens both design and control over yield, reliability and supply chain resilience, all of which are essential as unprecedented growth in data pushes storage demand beyond historical levels. Vertical integration also shortens qualification timelines and supports predictable manufacturing economics.
How Mozaic 4+ Addresses Data Center Infrastructure Challenges
Artificial intelligence depends on the ability to retain and access massive volumes of training data, historical archives and AI-generated content – including increasingly large video and other multimodal outputs. Hyperscalers rely on mass-capacity hard drives to economically store, manage and reactivate the exponentially growing data pools that enable trustworthy AI workloads.
The incremental increases in per-disk capacity delivered by Mozaic 4+ enable high-capacity, cost-efficient storage that scales without increasing infrastructure footprint or energy consumption – strengthening the economic foundation of AI at scale. The platform advances capacity per-rack and per-watt, improving data center efficiency, lowering total cost of ownership and enabling organizations to preserve and reactivate data over time, sustainably.
1 In a one-exabyte deployment, Mozaic improves infrastructure efficiency by approximately 47 percent compared to standard 30TB deployments, reducing required data center footprint by about 100 square feet and lowering annual energy consumption by roughly 0.8 million kilowatt-hours. At AI scale, these efficiencies compound into meaningful economic advantage.
“As AI models have evolved and GenAI-powered applications have expanded their capabilities and reach, it’s become abundantly clear that the need for massive amounts of data—both real and synthetically generated—are essential to keep AI advancements moving ahead,” said Bob O’Donnell, President of TECHnalysis Research. “Whether for large-scale model training or sophisticated fine-tuning, companies who build and use these AI models have found that high-capacity hard drive innovations like HAMR have become critical to quality and speed of their outputs.”
Availability
Seagate’s Mozaic™ 4+ hard drives supporting capacities up to 44TB are now shipping in volume to two leading hyperscale cloud providers. Broader availability is planned as production continues to scale.
About Seagate Technology
Seagate (NASDAQ: STX) is a pioneer in mass-capacity data storage, accelerating ability to harness the full value of data. Our portfolio of advanced storage solutions helps hyperscale cloud providers, enterprises, and consumers protect, create and manage the data that powers their transformation and growth. For more than 45 years, Seagate has driven breakthrough innovations that bring sustainable, high-performance storage to the world at-scale. Learn more at www.seagate.com, and follow us on LinkedIn, YouTube, X and Facebook.
©2026 Seagate Technology LLC. All rights reserved. Seagate, Seagate Technology, Mozaic, Exos, and the Spiral logo are trademarks or registered trademarks of Seagate Technology LLC in the United States and/or other countries. All other trademarks or registered trademarks are the property of their respective owners. When referring to drive capacity, one gigabyte, or GB, equals one billion bytes, one terabyte, or TB, equals one trillion bytes, and one exabyte, or EB, equals one quintillion bytes.
1 Source: Calculation based on internal Seagate documentation resulting from product testing.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260309717474/en/
For More Information Contact:
Erin Lundberg
erin.lundberg@edelman.com
Original: Seagate Delivers Industry’s Highest Capacity Hard Drives with Next-Generation Mozaic™ 4+
US Market News
5月前
Seagate Technology Reports Fiscal Second Quarter 2026 Financial ResultsJanuary 27, 2026 9:05 PM
Business Wire
Fiscal Q2 2026 Highlights
Revenue of $2.83 billion
GAAP gross margin of 41.6%; non-GAAP gross margin of 42.2%
GAAP diluted earnings per share (EPS) of $2.60; non-GAAP diluted EPS of $3.11
Cash flow from operations of $723 million and free cash flow of $607 million
Declared cash dividend of $0.74 per share
Seagate Technology Holdings plc (NASDAQ: STX) (the “Company” or “Seagate”), a leading innovator of mass-capacity data storage, today reported financial results for its fiscal second quarter ended January 2, 2026.
“Seagate’s December quarter results exceeded our expectations on both the top and bottom line, setting new records for gross margin, operating margin, and non-GAAP EPS. This performance highlights our team’s strong operational execution, the durability of data center demand, and the ongoing ramp of our HAMR-based Mozaic products,” said Dave Mosley, Seagate’s chair and chief executive officer.
“As AI applications amplify the creation and economic value of data, modern data centers increasingly need storage solutions that combine performance and cost-efficiency at exabyte-scale. Our areal-density-driven product roadmap positions us to meet the evolving storage requirements and exabyte demand growth, while creating significant value for our customers and shareholders for years to come,” Mosley concluded.
Quarterly Financial Results
GAAP
Non-GAAP
FQ2 2026
FQ2 2025
FQ2 2026
FQ2 2025
Revenue ($M)
$
2,825
$
2,325
$
2,825
$
2,325
Gross Margin
41.6
%
34.9
%
42.2
%
35.5
%
Operating Margin
29.8
%
21.0
%
31.9
%
23.1
%
Net Income ($M)
$
593
$
336
$
702
$
433
Diluted Earnings Per Share
$
2.60
$
1.55
$
3.11
$
2.03
For definitions and a detailed reconciliation of GAAP to non-GAAP results, see accompanying financial tables.
During the fiscal second quarter, the Company generated $723 million in cash flow from operations and $607 million in free cash flow. Seagate’s balance sheet remains healthy, and during the fiscal second quarter, the Company retired $500 million Exchangeable Senior Notes due 2028 and paid cash dividends of $154 million. As of the end of the quarter, cash and cash equivalents totaled $1.0 billion, and there were 218 million ordinary shares issued and outstanding.
Seagate has issued a Supplemental Financial Information document, which is available on Seagate’s Investor Relations website at investors.seagate.com.
Quarterly Cash Dividend
The Board of Directors of the Company (the “Board”) declared a quarterly cash dividend of $0.74 per share, which will be payable on April 8, 2026 to shareholders of record as of the close of business on March 25, 2026. The payment of any future quarterly dividends will be at the discretion of the Board and will be dependent upon Seagate’s financial position, results of operations, available cash, cash flow, capital requirements and other factors deemed relevant by the Board.
Business Outlook
The business outlook for the fiscal third quarter 2026 is based on our current assumptions and expectations; actual results may differ materially as a result of, among other things, the important factors discussed in the Cautionary Note Regarding Forward-Looking Statements section of this release.
The Company is providing the following guidance for its fiscal third quarter 2026:
Revenue of $2.90 billion, plus or minus $100 million
Non-GAAP diluted EPS of $3.40, plus or minus $0.20
Our fiscal third quarter guidance includes:
The estimated net dilutive impact from the Exchangeable Senior Notes due 2028; and
Minimal expected impact from global tariff policies announced as of the date of this release.
Guidance regarding non-GAAP diluted EPS excludes known pre-tax charges related to estimated share-based compensation expenses of $0.23 per share.
We have not reconciled our non-GAAP diluted EPS guidance for fiscal third quarter 2026 to the most directly comparable GAAP measure, other than estimated share-based compensation expenses, because material items that may impact these measures are out of our control and/or cannot be reasonably predicted, including, but not limited to, net (gain) loss from debt transactions, strategic investment losses (gains) or impairment charges, income tax adjustments on these measures, and other charges or benefits that may arise. The amounts of these measures are not currently available but may be material to future results. A reconciliation of our historical non-GAAP financial measures to their nearest GAAP equivalent is contained in this release.
Investor Communications
Seagate management will hold a public webcast at 2:00 PM PT / 5:00 PM ET on January 27, 2026 that can be accessed on its Investor Relations website at investors.seagate.com.
An archived audio webcast of this event will be available on Seagate’s Investor Relations website at investors.seagate.com shortly following the event conclusion.
About Seagate
Seagate Technology is a leading innovator of mass-capacity data storage. We create breakthrough technology so you can confidently store your data and easily unlock its value. Founded over 45 years ago, Seagate has shipped over four billion terabytes of data capacity and offers a full portfolio of storage devices, systems, and services from edge to cloud. To learn more about how Seagate leads storage innovation, visit www.seagate.com and our blog, or follow us on X, Facebook, LinkedIn, and YouTube.
© 2026 Seagate Technology LLC. All rights reserved. Seagate, Seagate Technology, and the Spiral logo are registered trademarks of Seagate Technology LLC in the United States and/or other countries.
Cautionary Note Regarding Forward-Looking Statements
This press release and our other communications regarding our quarterly financial results contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical fact. Forward-looking statements include, among other things, statements about the Company’s plans, programs, strategies, prospects, and opportunities; financial outlook for future periods, including the fiscal third quarter 2026; expectations regarding our ability to service debt and continue to generate free cash flow; expectations regarding our ability to make timely quarterly payments under the settlement agreement with the U.S. Department of Commerce’s Bureau of Industry and Security; expectations regarding logistical, macroeconomic, or other factors affecting the Company, including uncertainty related to tariffs, trade restrictions, or evolving global trade policy; expectations regarding market demand for the Company’s products, our visibility into such demand and our ability to optimize our level of production and meet market and industry expectations and the effects of these future trends on Company’s financial and operational performance, including our ability to deliver profitable growth; anticipated shifts in technology and storage industry trends, and anticipated demand and performance of new storage product introductions, including HAMR-based Mozaic products; our ability to successfully integrate acquisitions with our existing business; and expectations regarding the Company’s business strategy and performance, as well as dividend issuance plans for the fiscal quarter ending April 3, 2026 and beyond. Forward-looking statements generally can be identified by words such as “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “should,” “may,” “will,” “will continue,” “can,” “could” or the negative of these words, variations of these words and comparable terminology, in each case, intended to refer to future events or circumstances. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Forward-looking statements are subject to various uncertainties and risks that could cause our actual results to differ materially from historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s latest periodic report on Form 10-Q or Form 10-K filed with the U.S. Securities and Exchange Commission. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on, and which speak only as of, the date hereof. The Company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, unless required by applicable law.
The inclusion of Seagate’s website addresses in this press release are provided for convenience only. The information contained in, or that can be accessed through, Seagate’s websites and social media channels are not part of this press release.
SEAGATE TECHNOLOGY HOLDINGS PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
January 2, 2026
June 27, 2025
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
1,046
$
891
Accounts receivable, net
1,246
959
Inventories, net
1,498
1,440
Other current assets
419
363
Total current assets
4,209
3,653
Property, equipment and leasehold improvements, net
1,771
1,657
Goodwill
1,221
1,221
Deferred income taxes
1,088
1,066
Other assets, net
419
426
Total Assets
$
8,708
$
8,023
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable
$
1,771
$
1,604
Accrued employee compensation
253
352
Accrued warranty
66
60
Current portion of long-term debt
998
—
Accrued expenses
673
632
Total current liabilities
3,761
2,648
Long-term accrued warranty
94
77
Other non-current liabilities
893
756
Long-term debt, less current portion
3,501
4,995
Total Liabilities
8,249
8,476
Total Shareholders’ Equity (Deficit)
459
(453
)
Total Liabilities and Shareholders’ Equity (Deficit)
$
8,708
$
8,023
SEAGATE TECHNOLOGY HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
(Unaudited)
For the Three Months Ended
For the Six Months Ended
January 2, 2026
December 27, 2024
January 2, 2026
December 27, 2024
Revenue
$
2,825
$
2,325
$
5,454
$
4,493
Cost of revenue
1,649
1,513
3,241
2,967
Product development
187
184
373
365
Marketing and administrative
143
139
287
268
Restructuring and other, net
3
1
16
2
Total operating expenses
1,982
1,837
3,917
3,602
Income from operations
843
488
1,537
891
Interest income
7
8
14
15
Interest expense
(72
)
(84
)
(152
)
(169
)
Net loss from debt transactions
(66
)
—
(72
)
—
Other, net
(5
)
(62
)
(6
)
(71
)
Other expense, net
(136
)
(138
)
(216
)
(225
)
Income before income taxes
707
350
1,321
666
Provision for income taxes
114
14
179
25
Net income
$
593
$
336
$
1,142
$
641
Net income per share:
Basic
$
2.75
$
1.58
$
5.31
$
3.04
Diluted
$
2.60
$
1.55
$
5.03
$
2.95
Number of shares used in per share calculations:
Basic
216
212
215
211
Diluted
228
217
227
217
Cash dividends declared per ordinary share
$
0.74
$
0.72
$
1.46
$
1.42
SEAGATE TECHNOLOGY HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
For the Six Months Ended
January 2, 2026
December 27, 2024
OPERATING ACTIVITIES
Net income
$
1,142
$
641
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
140
127
Share-based compensation
105
87
Net loss from debt transactions
72
—
Deferred income taxes
(22
)
5
Other non-cash operating activities, net
29
96
Changes in operating assets and liabilities:
Accounts receivable, net
(287
)
(158
)
Inventories, net
(58
)
(234
)
Accounts payable
162
(190
)
Accrued employee compensation
(108
)
85
BIS settlement penalty
(30
)
(30
)
Accrued expenses, income taxes and warranty
197
(42
)
Other assets and liabilities
(87
)
(71
)
Net cash provided by operating activities
1,255
316
INVESTING ACTIVITIES
Acquisition of property, equipment and leasehold improvements
(221
)
(139
)
Proceeds from the sale of assets
—
1
Proceeds from business divestiture
15
—
Net cash used in investing activities
(206
)
(138
)
FINANCING ACTIVITIES
Redemption and repurchase of debt
(500
)
—
Dividends to shareholders
(307
)
(295
)
Taxes paid related to net share settlement of equity awards
(70
)
(35
)
Repurchases of ordinary shares
(29
)
—
Proceeds from issuance of ordinary shares under employee stock plans
27
32
Other financing activities, net
(15
)
—
Net cash used in financing activities
(894
)
(298
)
Increase (decrease) in cash, cash equivalents and restricted cash
155
(120
)
Cash, cash equivalents and restricted cash at the beginning of the period
893
1,360
Cash, cash equivalents and restricted cash at the end of the period
$
1,048
$
1,240
Use of non-GAAP financial information
The Company uses non-GAAP measures of gross profit, gross margin, operating expenses, income from operations, operating margin, net income, diluted EPS, free cash flow, EBITDA, adjusted EBITDA and last twelve months adjusted EBITDA, which are adjusted from results based on GAAP to exclude certain benefits, expenses, gains and losses. These non-GAAP financial measures are used by management to evaluate the business and provided to enhance the user’s overall understanding of the Company’s current financial performance and its prospects for the future. Specifically, the Company believes non-GAAP results provide useful information to investors as these non-GAAP results exclude certain benefits, expenses, gains and losses that the Company believes are not part of the Company's ongoing operations and not indicative of its core operating results.
These non-GAAP financial measures are some of the measurements management uses to assess the Company’s performance, allocate resources and plan for future periods. Reported non-GAAP results should only be considered as supplemental to results prepared in accordance with GAAP, and not considered as a substitute or replacement for, or superior to, GAAP results. These non-GAAP measures may differ from the non-GAAP measures reported by other companies in its industry.
SEAGATE TECHNOLOGY HOLDINGS PLC
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES
(In millions, except per share amounts, gross margin and operating margin)
(Unaudited)
For the Three Months Ended
For the Six Months Ended
January 2, 2026
December 27, 2024
January 2, 2026
December 27, 2024
GAAP Gross Profit
$
1,176
$
812
$
2,213
$
1,526
Amortization of acquired intangible assets
2
—
5
—
Purchase order cancellation fees
—
—
—
(1
)
Share-based compensation
13
13
27
23
Non-GAAP Gross Profit
$
1,191
$
825
$
2,245
$
1,548
GAAP Gross Margin
41.6
%
34.9
%
40.6
%
34.0
%
Non-GAAP Gross Margin
42.2
%
35.5
%
41.2
%
34.5
%
GAAP Operating Expenses
$
333
$
324
$
676
$
635
Acquisition-related charges
—
—
(1
)
—
Restructuring and other, net
(3
)
(1
)
(16
)
(2
)
Share-based compensation
(40
)
(36
)
(78
)
(64
)
Other charges
—
—
—
(1
)
Non-GAAP Operating Expenses
$
290
$
287
$
581
$
568
GAAP Income From Operations
$
843
$
488
$
1,537
$
891
Acquisition-related charges
—
—
1
—
Amortization of acquired intangible assets
2
—
5
—
Purchase order cancellation fees
—
—
—
(1
)
Restructuring and other, net
3
1
16
2
Share-based compensation
53
49
105
87
Other charges
—
—
—
1
Non-GAAP Income From Operations
$
901
$
538
$
1,664
$
980
GAAP Operating Margin
29.8
%
21.0
%
28.2
%
19.8
%
Non-GAAP Operating Margin
31.9
%
23.1
%
30.5
%
21.8
%
GAAP Net Income
$
593
$
336
$
1,142
$
641
Acquisition-related charges
—
—
1
—
Amortization of acquired intangible assets
2
—
5
—
Net loss from debt transactions
66
—
72
—
Purchase order cancellation fees
—
—
—
(1
)
Restructuring and other, net
3
1
16
2
Share-based compensation
53
49
105
87
Strategic investment losses or impairment charges
—
52
—
53
Other charges
—
—
—
1
Income tax adjustments
(15
)
(5
)
(56
)
(13
)
Non-GAAP Net Income
$
702
$
433
$
1,285
$
770
GAAP Diluted Net Income Per Share
$
2.60
$
1.55
$
5.03
$
2.95
Acquisition-related charges
—
—
—
—
Amortization of acquired intangible assets
0.01
—
0.02
—
Net loss from debt transactions
0.29
—
0.32
—
Purchase order cancellation fees
—
—
—
—
Restructuring and other, net
0.01
—
0.07
0.01
Share-based compensation
0.23
0.23
0.46
0.40
Strategic investment losses or impairment charges
—
0.24
—
0.24
Other charges
—
—
—
—
Income tax adjustments
(0.07
)
(0.02
)
(0.25
)
(0.06
)
Non-GAAP diluted share count adjustments1
0.04
0.03
0.06
0.08
Non-GAAP Diluted Net Income Per Share1
$
3.11
$
2.03
$
5.71
$
3.62
Shares Used In Diluted Net Income Per Share Calculation
GAAP
228
217
227
217
Non-GAAP diluted share count adjustments1
(2
)
(4
)
(2
)
(4
)
Non-GAAP
226
213
225
213
GAAP Net Cash Provided by Operating Activities
$
723
$
221
$
1,255
$
316
Acquisition of property, equipment and leasehold improvements
(116
)
(71
)
(221
)
(139
)
Free Cash Flow
$
607
$
150
$
1,034
$
177
1 For the three and six months ended January 2, 2026, and the three and six months ended December 27, 2024, using the if-converted method, approximately 8 million, 9 million, 4 million and 4 million shares, respectively, are issuable upon conversion of our 2028 exchangeable senior notes. These dilutive effects are expected to be offset partially or in full by the capped call transactions and are excluded from non-GAAP shares used in diluted net income per share calculation.
SEAGATE TECHNOLOGY HOLDINGS PLC
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES
(In millions)
(Unaudited)
For the Three Months Ended
January 2,
2026
October 3,
2025
June 27,
2025
March 28,
2025
Last Twelve
Months
GAAP Net Income
$
593
$
549
$
488
$
340
$
1,970
Depreciation and amortization
68
72
61
63
264
Interest expense
72
80
75
77
304
Interest income
(7
)
(7
)
(6
)
(4
)
(24
)
Income tax expense
114
65
4
15
198
Non-GAAP EBITDA
840
759
622
491
2,712
Acquisition-related charges
—
1
2
5
8
Net gain from business divestiture
—
—
—
(8
)
(8
)
Net loss from debt transactions
66
6
3
4
79
Purchase order cancellation fees
—
—
(5
)
(3
)
(8
)
Restructuring and other, net
3
13
16
20
52
Share-based compensation
53
52
59
54
218
Non-GAAP Adjusted EBITDA
$
962
$
831
$
697
$
563
$
3,053
The Company’s Non-GAAP measures are adjusted for the following items:
Acquisition-related charges
Acquisition-related charges are primarily related to transaction and integration costs. These expenses are excluded in the non-GAAP measures due to the inconsistency in amount and frequency, and they are not normal operating expenses or indicative of the Company's operating performance. Exclusion of these amounts provides a supplemental view of the Company's operating performance to investors to enable them to evaluate the Company's current operating performance compared to the past periods' operating performance.
Amortization of acquired intangible assets
The Company records expense from amortization of intangible assets that were acquired in connection with its business combinations over their estimated useful lives. Such charges are inconsistent in size and are significantly impacted by the timing and magnitude of the Company’s acquisitions. Consequently, the Company excludes these amounts to provide a supplemental view to investors to evaluate the Company's current operating performance compared to the past periods' operating performance.
Net gain from business divestiture
From time to time, the Company records net gains from the sale of businesses. These net gains are excluded in the non-GAAP measures because they are not indicative of the Company's operating performance. The Company excludes these amounts to provide a supplemental view to investors to evaluate the Company's current operating performance compared to the past periods' operating performance.
Net gain/loss from debt transactions
From time to time, the Company incurs gains, losses and fees from the early redemption and repurchase of certain long-term debt instruments and termination of related interest rate swap agreements. The amount of these charges may be inconsistent in size and varies depending on the timing of the early redemption of debt and/or termination of interest rate swap. The Company does not believe these are part of its normal operating performance. Exclusion of these amounts provides a supplemental view of the Company's operating performance to investors to enable them to evaluate the Company's current operating performance compared to the past periods' operating performance.
Purchase order cancellation fees
Purchase order cancellation fees are the costs incurred to cancel certain purchase commitments made with the Company's suppliers for component and equipment purchases that will not be received due to change in forecasted demand. These charges and subsequent credits received are inconsistent in amount and frequency. The Company does not believe these are part of its normal operating expenses. Exclusion of these amounts provides a supplemental view to investors to evaluate the Company's current operating performance compared to the past periods’ operating performance.
Restructuring and other, net
Restructuring and other, net are costs associated with restructuring plans that are primarily related to costs associated with reduction in the Company’s workforce, exiting certain facilities, inventory write down related to discontinued product lines and other related costs, as well as charges or gains from sale of properties. These costs or benefits do not reflect the Company’s normal or ongoing operating performance and consequently the Company excludes these expenses to provide a supplemental view to investors to evaluate the Company's current operating performance compared to the past periods’ operating performance.
Share-based compensation
These expenses consist primarily of expenses for employee share-based compensation. Given the variety of equity awards used by companies, the varying methodologies for determining share-based compensation expense, the subjective assumptions involved in those determinations, and the volatility in valuations that can be driven by market conditions outside the Company’s control, the Company believes excluding share-based compensation expense enhances the ability of management and investors to understand and assess the underlying performance of its business over time and compare it against the Company’s peers, a majority of whom also exclude share-based compensation expense from their non-GAAP results.
Strategic investment gains, losses and impairment charges
From time to time, the Company incurs gains, losses or impairment charges from strategic investments that are measured and accounted at fair value, under the equity method of accounting, as available-for-sale debt securities or adjust for downward or upward adjustments to the carrying value under the measurement alternative if an impairment or observable price adjustment is recognized in the current period that are not considered normal operating expenses or gains. The resulting expense, gain or impairment loss is inconsistent in amount and frequency and the Company excludes these amounts to provide a supplemental view to investors to evaluate the Company's current operating performance compared to the past periods’ operating performance.
Other charges
The other charges primarily include IT transformation costs. These charges are inconsistent in amount and frequency and are excluded to provide a supplemental view to investors to evaluate the Company's current operating performance compared to past periods’ operating performance.
Income tax adjustments
Seagate utilizes a projected annual non-GAAP income tax rate to determine its non-GAAP income taxes. The annual non-GAAP tax rate is based on considerations such as its current tax structure, projected tax positions and impacts from key legislation implemented in various jurisdictions but excludes the tax effects of pre-tax non-GAAP adjustments and other significant non-recurring income tax items. The Company believes applying the non-GAAP tax rate provides consistency across the interim reporting periods and reduces the effects of items not directly related to its operating structure that can vary in size and frequency. The non-GAAP income tax rate could be subject to change for a variety of reasons, including significant changes in tax laws. The Company will re-evaluate periodically its non-GAAP tax rate and may adjust as appropriate. For fiscal year 2026, the Company uses a projected non-GAAP income tax rate of 15.5%.
Non-GAAP diluted share count adjustments
Using the if-converted method, diluted net income per share is calculated assuming that the excess value above the principal of the 2028 exchangeable notes were converted solely into shares of common stock at the beginning of the reporting period, unless the result would be anti-dilutive. Non-GAAP shares used in diluted net income per share calculation excluded certain dilutive shares, which are expected to be offset partially or in full by the capped call transactions entered by the Company in conjunction with our 2028 exchangeable senior notes in order to reduce the potential dilution to the Company’s ordinary shares upon the conversion.
Free cash flow
Free cash flow is a non-GAAP measure defined as net cash provided by operating activities less acquisition of property, equipment and leasehold improvements. Free cash flow does not reflect non-cash items, net cash used or provided by financing activities and net cash used or provided by investing activities, other than acquisition of property, equipment and leasehold improvements. This non-GAAP financial measure is used by management to assess the Company's sources of liquidity, capital structure and operating performance.
EBITDA, adjusted EBITDA and last twelve months (LTM) adjusted EBITDA
EBITDA is defined as net income (loss) before income tax expense, interest expense, interest income, depreciation and amortization. Adjusted EBITDA excludes certain expenses, gains and losses that the Company believes are not indicative of its core operating results. These adjustments primarily include impairment and other charges related to cost saving efforts, net loss (gain) from debt transactions, net gain from termination of interest rate swap, net gain from business divestiture, purchase order cancellation fees, restructuring and other, net, share-based compensation, strategic investment losses or impairment charges, other extraordinary charges such as factory underutilization charges. LTM adjusted EBITDA is defined as the total of last twelve months adjusted EBITDA. These non-GAAP financial measures are used by management to evaluate the Company’s debt portfolio and structure to comply with its financial debt covenants.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260127711045/en/
Investor Relations Contact:
Shanye Hudson, (510) 661-1600
shanye.hudson@seagate.com
Media Contact:
Karin Taylor, (408) 772-8279
karin.h.taylor@seagate.com
Original: Seagate Technology Reports Fiscal Second Quarter 2026 Financial Results
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