# Seagate (STX): 52% Gross Margin on Hard Drives — Best Quarter Ever, Stock Down 28%

Page: https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792/seagate-stx-52-gross-margin-on-hard-drives-best-quarter-ever-stock-down-28
Text version: https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792/seagate-stx-52-gross-margin-on-hard-drives-best-quarter-ever-stock-down-28.md
Podcast: [Charged Alpha Stock Encyclopedia](https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792)
Published: 2026-07-29T14:38:45+00:00
Episode link: https://chargedalpha.podbean.com/e/seagate-stx-52-gross-margin-on-hard-drives-%e2%80%94-best-quarter-ever-stock-down-28/
Audio file: https://mcdn.podbean.com/mf/web/zce9npcbzprei45d/audio_h.mp3
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Duration seconds: 887

## Resource

Seagate Technology Holdings plc (STX) Q4 FY2026 — Seagate Technology Holdings plc (STX), one of only two companies that matter in nearline hard disk drives, reported fiscal Q4 2026 (quarter ended July 3, 2026) after the close on July 28. Revenue was $3.629B, +48.5% YoY; GAAP gross margin 52.3% and non-GAAP gross margin 52.7%, against 37.4% and 37.9% a year ago; GAAP diluted EPS $5.58 (vs $2.24) and non-GAAP diluted EPS $5.71 (vs $2.59); income from operations $1.559B versus $568M, a 43% operating margin. Cash flow from operations was $1.3B and free cash flow $1.118B; the company retired $302M of debt and returned $283M to shareholders. Full fiscal year 2026: revenue $12.195B (+34%), GAAP diluted EPS $13.90, non-GAAP diluted EPS $15.58, cash flow from operations $3.674B, record free cash flow $3.105B on capital spending of just $569M, $1.4B of debt retired and $810M returned. Shareholders' equity swung from a $453M deficit to positive $2.167B; net debt is about $1.9B. The board declared a $0.74 quarterly dividend payable October 7, 2026. Guidance for fiscal Q1 2027 is revenue of $4.1B +/- $100M (about +56% YoY) and non-GAAP diluted EPS of $7.30 +/- $0.20, against $2.61 in the year-ago quarter. On the call management said hard drive exabyte shipments reached 218 EB (+34% YoY) with roughly 90% going into data centers; data center revenue was $2.9B, +57% YoY on 195 exabytes, or 81% of total sales; HAMR-based Mozaic products exited fiscal 2026 at about 40% of the nearline exabyte run rate; and the vast majority of nearline exabytes are already allocated under long-term supply agreements through calendar 2028, with customers seeking to extend into 2029 and beyond. The under-covered number: revenue grew 48.5% while exabytes grew 34%, so revenue per exabyte rose roughly 11% —…

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