Seagate Technology Reports Fiscal Third Quarter 2026 Financial Results

SINGAPORE–(BUSINESS WIRE)–Seagate Technology Holdings plc (NASDAQ: STX) (the “Company” or “Seagate”), a number one innovator of mass-capacity knowledge storage, at this time reported monetary outcomes for its fiscal third quarter ended April 3, 2026.

“Seagate delivered outstanding March quarter results, exceeding the high end of our revenue and EPS guidance, achieving record margin performance, and generating close to $1 billion in free cash flow,” mentioned Dave Mosley, Seagate’s chair and chief government officer.

“We believe Seagate is entering a new era of structural growth as AI applications amplify data creation and support sustained storage demand. Our areal density-driven product strategy enables us to deliver higher-capacity, energy- and capital-efficient storage at scale. Through disciplined execution, we are strategically positioned to capture these opportunities, and drive profitable growth and long-term value creation,” Mosley concluded.

Quarterly Financial Results

For definitions and an in depth reconciliation of GAAP to non-GAAP outcomes, see accompanying monetary tables.

During the fiscal third quarter, the Company generated $1.1 billion in money move from operations and $953 million in free money move. Seagate’s stability sheet stays wholesome, and in the course of the fiscal third quarter, the Company retired roughly $641 million in debt and returned $191 million to shareholders by means of dividends and share repurchases. As of the tip of the quarter, money and money equivalents totaled $1.1 billion, and there have been 224 million extraordinary shares issued and excellent.

Seagate has issued a Supplemental Financial Information doc, which is obtainable on Seagate’s Investor Relations web site at investors.seagate.com.

Quarterly Cash Dividend

The Board of Directors of the Company (the “Board”) declared a quarterly money dividend of $0.74 per share, which can be payable on July 7, 2026 to shareholders of report as of the shut of enterprise on June 24, 2026. The fee of any future quarterly dividends can be on the discretion of the Board and can be dependent upon Seagate’s monetary place, outcomes of operations, obtainable money, money move, capital necessities and different components deemed related by the Board.

Business Outlook

The enterprise outlook for the fiscal fourth quarter 2026 relies on our present assumptions and expectations; precise outcomes could differ materially because of, amongst different issues, the necessary components mentioned within the Cautionary Note Regarding Forward-Looking Statements part of this launch.

The Company is offering the next steerage for its fiscal fourth quarter 2026:

• Revenue of $3.45 billion, plus or minus $100 million

• Non-GAAP diluted EPS of $5.00, plus or minus $0.20

Our fiscal fourth quarter steerage consists of:

• The estimated web dilutive influence from the Exchangeable Senior Notes due 2028; and

• Minimal anticipated influence from world tariff insurance policies and/or the present battle within the Middle East as of the date of this launch.

Guidance concerning non-GAAP diluted EPS excludes identified pre-tax prices associated to estimated share-based compensation bills of $0.23 per share.

We haven’t reconciled our non-GAAP diluted EPS steerage for fiscal fourth quarter 2026 to probably the most instantly comparable GAAP measure, apart from estimated share-based compensation bills, as a result of materials gadgets which will influence these measures are out of our management and/or can’t be moderately predicted, together with, however not restricted to, web (acquire) loss from debt transactions, strategic funding losses (features) or impairment prices, earnings tax changes on these measures, and different prices or advantages which will come up. The quantities of those measures will not be at the moment obtainable however could also be materials to future outcomes. A reconciliation of our historic non-GAAP monetary measures to their nearest GAAP equal is contained on this launch.

Investor Communications

Seagate administration will maintain a public webcast at 2:00 PM PT / 5:00 PM ET on April 28, 2026 that may be accessed on its Investor Relations web site at investors.seagate.com.

An archived audio webcast of this occasion can be obtainable on Seagate’s Investor Relations web site at investors.seagate.com shortly following the occasion conclusion.

About Seagate Technology

Seagate (NASDAQ: STX) is a pioneer in mass-capacity knowledge storage, accelerating skill to harness the total worth of information. Our portfolio of superior storage options helps hyperscale cloud suppliers, enterprises, and customers defend, create and handle the info that powers their transformation and progress. For greater than 45 years, Seagate has pushed breakthrough improvements that carry sustainable, high-performance storage to the world at-scale. Learn extra at www.seagate.com, and observe us on LinkedIn, YouTube, X and Facebook.

© 2026 Seagate Technology LLC. All rights reserved. Seagate, Seagate Technology, and the Spiral emblem are registered emblems of Seagate Technology LLC within the United States and/or different nations.

Cautionary Note Regarding Forward-Looking Statements

This press launch and our different communications concerning our quarterly monetary outcomes accommodates forward-looking statements throughout the which means of the Private Securities Litigation Reform Act of 1995. Forward-looking statements present present expectations of future occasions primarily based on sure assumptions and embrace any assertion that doesn’t instantly relate to any historic reality. Forward-looking statements embrace, amongst different issues, statements concerning the Company’s plans, applications, methods, prospects, and alternatives; monetary outlook for future intervals, together with the fiscal fourth quarter 2026; expectations concerning our skill to service debt and proceed to generate free money move; expectations concerning our skill to make well timed quarterly funds underneath the settlement settlement with the U.S. Department of Commerce’s Bureau of Industry and Security; expectations concerning logistical, macroeconomic, or different components affecting the Company, together with uncertainty associated to tariffs, commerce restrictions, or evolving world commerce coverage; expectations concerning market demand for the Company’s merchandise, our visibility into such demand and our skill to optimize our stage of manufacturing and meet market and business expectations and the consequences of those future developments on Company’s monetary and operational efficiency, together with our skill to ship worthwhile progress; anticipated shifts in know-how and storage business developments, and anticipated demand and efficiency of latest storage product introductions, together with HAMR-based Mozaic merchandise; our skill to efficiently combine acquisitions with our current enterprise; and expectations concerning the Company’s enterprise technique and efficiency, in addition to dividend issuance plans for the fiscal quarter ending July 3, 2026 and past. Forward-looking statements usually will be recognized by phrases akin to “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “should,” “may,” “will,” “will continue,” “can,” “could” or the detrimental of those phrases, variations of those phrases and comparable terminology, in every case, supposed to consult with future occasions or circumstances. However, the absence of those phrases or related expressions doesn’t imply {that a} assertion will not be forward-looking. Forward-looking statements are topic to varied uncertainties and dangers that would trigger our precise outcomes to vary materially from historic expertise and our current expectations or projections. These dangers and uncertainties embrace, however will not be restricted to, these described underneath the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” within the Company’s newest periodic report on Form 10-Q or Form 10-Okay filed with the U.S. Securities and Exchange Commission. Undue reliance shouldn’t be positioned on the forward-looking statements on this press launch, that are primarily based on data obtainable to us on, and which converse solely as of, the date hereof. The Company undertakes no obligation to replace forward-looking statements to mirror occasions or circumstances after the date they had been made, until required by relevant regulation.

The inclusion of Seagate’s web site addresses on this press launch are supplied for comfort solely. The data contained in, or that may be accessed by means of, Seagate’s web sites and social media channels will not be a part of this press launch.

Use of non-GAAP monetary data

The Company makes use of non-GAAP measures of gross revenue, gross margin, working bills, earnings from operations, working margin, web earnings, diluted EPS, free money move, EBITDA, adjusted EBITDA and final twelve months adjusted EBITDA, that are adjusted from outcomes primarily based on GAAP to exclude sure advantages, bills, features and losses. These non-GAAP monetary measures are utilized by administration to guage the enterprise and supplied to reinforce the person’s total understanding of the Company’s present monetary efficiency and its prospects for the long run. Specifically, the Company believes non-GAAP outcomes present helpful data to traders as these non-GAAP outcomes exclude sure advantages, bills, features and losses that the Company believes will not be a part of the Company’s ongoing operations and never indicative of its core working outcomes.

These non-GAAP monetary measures are among the measurements administration makes use of to evaluate the Company’s efficiency, allocate assets and plan for future intervals. Reported non-GAAP outcomes ought to solely be thought-about as supplemental to outcomes ready in accordance with GAAP, and never thought-about as an alternative or substitute for, or superior to, GAAP outcomes. These non-GAAP measures could differ from the non-GAAP measures reported by different corporations in its business.

¹ The Company recorded $20 million of restructuring prices within the three months ended March 28, 2025, of which $10 million was recorded to Cost of income and $10 million was recorded to Restructuring and different, web, inside Operating bills.

² For the three and 9 months ended April 3, 2026, and the three and 9 months ended March 28, 2025, utilizing the if-converted technique, roughly 4 million, 7 million, 2 million and 4 million shares, respectively, are issuable upon conversion of our 2028 exchangeable senior notes. These dilutive results are anticipated to be offset partially by the capped name transactions and are excluded from non-GAAP shares utilized in diluted web earnings per share calculation.

The Company’s Non-GAAP measures are adjusted for the next gadgets:

Acquisition-related prices

Acquisition-related prices are primarily associated to transaction and integration prices. These bills are excluded within the non-GAAP measures as a result of inconsistency in quantity and frequency, and they don’t seem to be regular working bills or indicative of the Company’s working efficiency. Exclusion of those quantities supplies a supplemental view of the Company’s working efficiency to traders to allow them to guage the Company’s present working efficiency in comparison with the previous intervals’ working efficiency.

Amortization of acquired intangible property

The Company information expense from amortization of intangible property that had been acquired in reference to its enterprise mixtures over their estimated helpful lives. Such prices are inconsistent in dimension and are considerably impacted by the timing and magnitude of the Company’s acquisitions. Consequently, the Company excludes these quantities to supply a supplemental view to traders to guage the Company’s present working efficiency in comparison with the previous intervals’ working efficiency.

Legal settlement

From time to time, the Company incurs prices associated to the settlement of litigation issues. These prices are inconsistent in quantity and frequency and are excluded from the Company’s non‑GAAP measures to supply a supplemental view to traders to guage the Company’s present working efficiency in comparison with the previous intervals’ working efficiency.

Net acquire/loss from enterprise divestiture

From time to time, the Company information web features or losses from the sale of companies. These web features are excluded within the non-GAAP measures as a result of they don’t seem to be indicative of the Company’s working efficiency. The Company excludes these quantities to supply a supplemental view to traders to guage the Company’s present working efficiency in comparison with the previous intervals’ working efficiency.

Net acquire/loss from debt transactions

From time to time, the Company incurs features, losses and costs from the early redemption and repurchase of sure long-term debt devices. The quantity of those prices could also be inconsistent in dimension and varies relying on the timing of the early redemption of debt. The Company doesn’t consider these are a part of its regular working efficiency. Exclusion of those quantities supplies a supplemental view of the Company’s working efficiency to traders to allow them to guage the Company’s present working efficiency in comparison with the previous intervals’ working efficiency.

Purchase order cancellation charges

Purchase order cancellation charges are the prices incurred to cancel sure buy commitments made with the Company’s suppliers for element and gear purchases that won’t be acquired because of change in forecasted demand. These prices and subsequent credit acquired are inconsistent in quantity and frequency. The Company doesn’t consider these are a part of its regular working bills. Exclusion of those quantities supplies a supplemental view to traders to guage the Company’s present working efficiency in comparison with the previous intervals’ working efficiency.

Restructuring and different, web

Restructuring and different, web are prices related to restructuring plans which can be primarily associated to prices related to discount within the Company’s workforce, exiting sure services, stock write down associated to discontinued product traces and different associated prices, in addition to prices or features from sale of properties. These prices or advantages don’t mirror the Company’s regular or ongoing working efficiency and consequently the Company excludes these bills to supply a supplemental view to traders to guage the Company’s present working efficiency in comparison with the previous intervals’ working efficiency.

Share-based compensation

These bills consist primarily of bills for worker share-based compensation. Given the number of fairness awards utilized by corporations, the various methodologies for figuring out share-based compensation expense, the subjective assumptions concerned in these determinations, and the volatility in valuations that may be pushed by market circumstances exterior the Company’s management, the Company believes excluding share-based compensation expense enhances the power of administration and traders to grasp and assess the underlying efficiency of its enterprise over time and evaluate it towards the Company’s friends, a majority of whom additionally exclude share-based compensation expense from their non-GAAP outcomes.

Strategic funding features, losses and impairment prices

From time to time, the Company incurs features, losses or impairment prices from strategic investments which can be measured and accounted at honest worth, underneath the fairness technique of accounting, as available-for-sale debt securities or alter for downward or upward changes to the carrying worth underneath the measurement different if an impairment or observable value adjustment is acknowledged within the present interval that aren’t thought-about regular working bills or features. The ensuing expense, acquire or impairment loss is inconsistent in quantity and frequency, and the Company excludes these quantities to supply a supplemental view to traders to guage the Company’s present working efficiency in comparison with the previous intervals’ working efficiency.

Other prices

The different prices primarily embrace IT transformation prices. These prices are inconsistent in quantity and frequency and are excluded to supply a supplemental view to traders to guage the Company’s present working efficiency in comparison with previous intervals’ working efficiency.

Income tax changes

Seagate makes use of a projected annual non-GAAP earnings tax charge to find out its non-GAAP earnings taxes. The annual non-GAAP tax charge relies on concerns akin to its present tax construction, projected tax positions and impacts from key laws carried out in varied jurisdictions however excludes the tax results of pre-tax non-GAAP changes and different important non-recurring earnings tax gadgets. The Company believes making use of the non-GAAP tax charge supplies consistency throughout the interim reporting intervals and reduces the consequences of things circuitously associated to its working construction that may fluctuate in dimension and frequency. The non-GAAP earnings tax charge might be topic to alter for quite a lot of causes, together with important adjustments in tax legal guidelines. The Company will re-evaluate periodically its non-GAAP tax charge and will alter as applicable. For fiscal yr 2026, the Company makes use of a projected non-GAAP earnings tax charge of 15.5%.

Non-GAAP diluted share rely changes

Using the if-converted technique, diluted web earnings per share is calculated assuming that the surplus worth above the principal of the 2028 exchangeable notes had been transformed solely into shares of widespread inventory firstly of the reporting interval, until the outcome can be anti-dilutive. Non-GAAP shares utilized in diluted web earnings per share calculation excluded sure dilutive shares, that are anticipated to be offset partially by the capped name transactions entered by the Company along side our 2028 exchangeable senior notes with a purpose to scale back the potential dilution to the Company’s extraordinary shares upon the conversion.

Free money move

Free money move is a non-GAAP measure outlined as web money supplied by working actions much less acquisition of property, gear and leasehold enhancements. Free money move doesn’t mirror non-cash gadgets, web money used or supplied by financing actions and web money used or supplied by investing actions, apart from acquisition of property, gear and leasehold enhancements. This non-GAAP monetary measure is utilized by administration to evaluate the Company’s sources of liquidity, capital construction and working efficiency.

EBITDA, adjusted EBITDA and final twelve months (LTM) adjusted EBITDA

EBITDA is outlined as web earnings earlier than earnings tax expense, curiosity expense, curiosity earnings, depreciation and amortization. Adjusted EBITDA excludes sure bills, features and losses that the Company believes will not be indicative of its core working outcomes. These changes primarily embrace impairment and different prices associated to price saving efforts, web loss (acquire) from debt transactions, web loss (acquire) from enterprise divestiture, buy order cancellation charges, restructuring and different, web, share-based compensation, strategic funding losses or impairment prices, different extraordinary prices akin to manufacturing unit underutilization prices. LTM adjusted EBITDA is outlined as the overall of final twelve months adjusted EBITDA. These non-GAAP monetary measures are utilized by administration to guage the Company’s debt portfolio and construction to adjust to its monetary debt covenants.