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Jan 02
Seagate Q2 2026 Earnings Report
Seagate reported strong results for Q2 FY26 with record margins and solid growth in revenue and profitability.
Key Takeaways
Seagate exceeded expectations in Q2 FY26 with higher gross and operating margins, driven by strong demand from data centers and successful ramp of its HAMR-based products.
Revenue reached $2.825 billion for the quarter.
GAAP Net Income totaled $593 million; Non-GAAP Net Income was $702 million.
Record GAAP gross margin of 41.6% and non-GAAP gross margin of 42.2%.
Free cash flow hit $607 million, reflecting strong operational performance.
Forward Guidance
Seagate expects continued strength in Q3 FY26, projecting increased revenue and earnings driven by ongoing demand for data storage and next-gen products.
Positive Outlook
- Revenue guidance of $2.90 billion ± $100 million for Q3 FY26.
- Expected non-GAAP EPS of $3.40 ± $0.20.
- Strong ongoing ramp of HAMR-based Mozaic products.
- Minimal impact expected from global tariff policies.
- Continued healthy cash flow generation.
Challenges Ahead
- Macroeconomic uncertainties could impact demand.
- Currency fluctuations and global trade policies may pose risks.
- Potential volatility in AI infrastructure investments.
- Ongoing competition in storage solutions market.
- Uncertainty around timing of large customer deployments.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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