Seagate Tops Revenue Estimates at $4.2 Billion as Adjusted EPS Reaches $7.68

Seagate Technology Holdings plc (Nasdaq: STX) reported fiscal first-quarter revenue of $4.2 billion, above the $4.14 billion analysts expected, and adjusted diluted earnings per share of $7.68, above the $7.40 consensus estimate, in an 8-K filed Tuesday, Oct. 27, 2026. Revenue rose from $2.63 billion a year earlier, and GAAP diluted EPS was $7.59, compared with $2.43 a year earlier.

Margins and cash flow

GAAP gross margin was 57.3%, up from 39.4% a year earlier, and non-GAAP gross margin was 57.8%, against 40.1%. GAAP net income was $1.76 billion, compared with $549 million a year earlier. Cash flow from operations was $1.7 billion and free cash flow was $1.5 billion, which the company said was its highest ever for a September quarter.

Debt and shareholder returns

Seagate retired about $1.2 billion of principal debt in the quarter, lowering gross debt to $2.4 billion. After the quarter ended, it retired another $750 million, bringing gross debt to $1.6 billion. The company returned $568 million to shareholders through dividends and share repurchases. Its board declared a quarterly cash dividend of $0.76 per share, up about 3%, payable Jan. 7, 2027, to holders of record on Dec. 23, 2026.

Outlook

For fiscal second quarter 2027, Seagate guided to revenue of $4.8 billion, plus or minus $100 million, and non-GAAP diluted EPS of $9.20, plus or minus $0.20. That guidance excludes estimated share-based compensation expenses of $0.30 per share. Analysts had expected revenue of $4.53 billion and EPS of $8.54 for the quarter ending Dec. 31. Chair and chief executive Dave Mosley said demand visibility supports what the company calls a multi-year growth phase. The company will discuss its outlook on a webcast at 2:00 p.m. Pacific time on Oct. 27.