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Seagate Technology reported financial results for the first quarter of fiscal year 2027, with revenue of $4.23 billion, up about 61% year over year, and adjusted earnings per share of $7.68, both exceeding analyst expectations; GAAP gross margin rose to 57.3%, and free cash flow was $1.479 billion, up about 246% year over year. The company expects second-quarter revenue of $4.8 billion and adjusted earnings per share of $9.20, and raised its quarterly dividend by about 3% to $0.76 per share. The earnings report repeatedly mentioned the HAMR technology roadmap and HAMR-based Mozaic products. On the subsequent conference call, CEO Dave Mosley said the vast majority of nearline capacity has been locked in through long-term supply agreements through 2028, with some cloud customer agreements extending to 2030; the company is maintaining capital expenditures at 4%-6% of revenue and plans to significantly step up share repurchases starting in the quarter beginning March of calendar year 2027.
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Oct 28
Wall Street Insights
Seagate Earnings Call: Nearline Capacity Already Locked Through 2028, Committed to 4%-6% CapEx Red Line, Stock Buybacks to Step Up in the March Quarter Next Year
Seagate's FY2027 Q1 revenue was $4.23 billion, up 61% year-over-year, with gross margin exceeding 57% and record free cash flow of nearly $1.5 billion; CEO Dave Mosley said the vast majority of nearline capacity has been locked through 2028 via long-term supply agreements, with some cloud customer agreements extending to 2030. The company is holding capital expenditure at 4%-6% of revenue, driving roughly 25% exabyte compound growth through areal density rather than capacity expansion, and plans to significantly step up stock buybacks starting in the March quarter of calendar year 2027.
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Seagate Technology's Q1 fiscal quarter revenue grew 61% year-over-year, with free cash flow and gross margin both hitting record highs
Seagate Technology's revenue for the first quarter of fiscal year 2027 reached $4.23 billion, up about 61% year-over-year, with adjusted earnings per share of $7.68, both exceeding analyst expectations; GAAP gross margin rose to 57.3%, and free cash flow was $1.479 billion, up about 246% year-over-year. The company expects second-quarter revenue of $4.8 billion and adjusted earnings per share of $9.20, and raised its quarterly dividend by about 3% to $0.76 per share. The earnings report mentioned the HAMR technology roadmap and HAMR-based Mozaic products multiple times.