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Oct 03
Seagate Q1 2026 Earnings Report
Seagate delivered a strong Q1 2026 performance with revenue and profitability significantly up year-over-year.
Key Takeaways
Seagate reported robust Q1 2026 results with revenue growing 21% YoY to $2.63 billion and adjusted EPS of $2.61. Record gross margins and solid free cash flow demonstrated strong demand for its high-capacity storage solutions.
Revenue increased 21% YoY to $2.63 billion
Non-GAAP gross margin reached a record 40.1%
Net income rose to $549 million from $305 million last year
Returned $182 million to shareholders via dividends and share repurchases
Seagate
Seagate
Forward Guidance
Seagate expects Q2 2026 revenue around $2.70 billion and non-GAAP EPS of $2.75, driven by ongoing demand for its HAMR storage technology.
Positive Outlook
- Revenue guidance of $2.70B +/- $100M for Q2 2026
- Non-GAAP EPS expected to reach $2.75 +/- $0.20
- Ongoing strength in demand for Mozaic HAMR products
- HAMR qualified with 5 major cloud customers
- Increased quarterly dividend by approximately 3% to $0.74/share
Challenges Ahead
- Impact from global minimum tax (Pillar Two) expected to begin
- Dilutive impact from 2028 Exchangeable Senior Notes
- No full GAAP guidance due to unpredictability of non-recurring items
- Macroeconomic and geopolitical factors remain uncertain
- Limited detail on geographic or segment-level performance