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Mar 28

Seagate Q3 2025 Earnings Report

Seagate delivered solid growth in Q3 2025 with strong profitability and margin expansion.

Key Takeaways

Seagate achieved year-on-year revenue and profitability growth, with non-GAAP EPS at the top of guidance, reflecting a healthy supply/demand environment and strategic operational improvements.

Revenue reached $2.16 billion, growing strongly year-over-year.

Non-GAAP EPS was $1.90, exceeding expectations.

Net Income surged to $340 million compared to $25 million a year ago.

Free cash flow remained strong at $216 million.

Total Revenue
$2.16B
Previous year: $1.66B
+30.5%
EPS
$1.9
Previous year: $0.33
+475.8%
GAAP Gross Margin
35.2%
Previous year: 25.7%
+37.0%
Non-GAAP Gross Margin
36.2%
Previous year: 26.1%
+38.7%
GAAP Operating Margin
20%
Previous year: 8.6%
+132.6%
Gross Profit
$760M
Previous year: $425M
+78.8%
Cash and Equivalents
$814M
Previous year: $795M
+2.4%
Free Cash Flow
$216M
Previous year: $128M
+68.8%
Total Assets
$7.56B
Previous year: $7.1B
+6.6%

Seagate

Seagate

Forward Guidance

Seagate expects continued growth in Q4 2025, supported by strong cloud demand and technology leadership, but acknowledges macroeconomic uncertainties.

Positive Outlook

  • Revenue guidance midpoint at $2.40 billion.
  • Non-GAAP EPS guidance midpoint at $2.40.
  • Minimal expected impact from global tariff changes.
  • Continued ramp-up of HAMR product shipments.
  • Strong visibility into cloud customer demand.

Challenges Ahead

  • Potential macroeconomic volatility could impact demand.
  • Exposure to global trade and tariff policy risks.
  • Ongoing restructuring and transformation costs.
  • Uncertain timing of market recovery in enterprise sectors.
  • Dependence on favorable supply/demand balance for mass capacity storage.