Q4 2026 debt operations: Seagate completed a $186 million exchange of 2028 Exchangeable Notes on May 27, processed holder-initiated exchanges of approximately $63 million in May and June, and on June 11, 2026 issued a Notice of Full Provisional Redemption for the remaining $185 million of 2028 Notes, with cash redemption effective September 8, 2026. (Annual context: total FY2026 outstanding-debt reduction was $1.4 billion through exchanges and repurchases; total FY2026 capex was $569 million.)
Q4 2026 legal settlement: On April 3, 2026, Seagate agreed in principle to resolve the consolidated securities class action for $175 million (~$105 million borne by the company, ~$70 million by insurers); the court granted preliminary approval on July 7, 2026, with a final approval hearing scheduled for November 17, 2026. The $105 million company charge was recorded in FY2026 operating expenses.
Q4 2026 share repurchases: The company repurchased 0.2 million shares under its publicly announced plan between April 4 and May 1, 2026 (average price $533.60); no further plan repurchases occurred for the remainder of the quarter. $4.8 billion remained available under the $5.0 billion board authorization. (Annual context: total FY2026 plan repurchases were 0.5 million shares for $176 million.)
Annual context – volume, mix, and HAMR roadmap: FY2026 (53 weeks) shipped 789 exabytes of HDD capacity (695 nearline, 94 non-nearline) versus 595 EB in FY2025; Data Center grew to 80% of revenue (from 75%). Management stated FY2027 capital expenditures are expected to be higher than FY2026 to support the volume ramp of HAMR-based (Mozaic platform) drives, while remaining within the company's 4–6% of revenue capex target. Demand was described as strengthened by sustained nearline drive purchases from global cloud customers and increasing AI-related application workloads.
Annual context – tax and restructuring: Pillar Two global minimum tax took effect beginning FY2026, raising the company's effective tax rate to 13.73% (from 2.91% in FY2025); Singapore and Thailand tax incentives still provided a net ~$197 million benefit after top-up tax offsets. Seagate recorded $27 million in FY2026 restructuring charges (primarily employee termination benefits) and recognized approximately $163 million in government grants offsetting cost of revenue, product development, and marketing/administrative expenses.
(Filed on April 29, 2026)
+44.1%
46.5%
$1.1B
Seagate shipped 199.4 EB of HDDs in the March 2026 quarter (175.4 EB nearline, 24.0 EB non-nearline), generating $3.1 billion in revenue, up 44% year-over-year. Gross margin expanded to 46.5% from 35% in the prior-year quarter, driven primarily by pricing actions. Data center end-market revenue represented 80% of total (up from 75% a year prior) as the company reorganized its reporting into 'Data Center' and 'Edge IoT' segments to reflect AI-driven demand, a change applied retrospectively to prior periods presented.
Management attributed the demand environment to sustained growth in high-capacity nearline drive orders from global cloud customers and increasing enterprise edge deployments, citing ongoing AI application adoption as driving data generation and storage needs for inferencing, training, and model integrity. The company noted the macroeconomic environment remains marked by heightened geopolitical uncertainty and evolving trade policies.
Seagate stated it expects fiscal 2026 capital expenditures to be higher than fiscal 2025 to support the volume ramp of hard drives utilizing heat-assisted magnetic recording (HAMR) technology, while remaining within its stated target range of 4-6% of revenue. Nine-month capex was $382 million versus $182 million in the prior-year period. Unconditional equipment purchase commitments totaled $312 million as of April 3, 2026, of which $298 million is expected to be paid within one year.
On February 19, 2026, Seagate completed a privately negotiated exchange of $600 million principal of its 3.50% Exchangeable Senior Notes due 2028 for $600 million cash and approximately 6 million ordinary shares (following a similar $500 million exchange in November 2025). The conditional conversion option was triggered as of the calendar quarter ended March 31, 2026, making the remaining $399 million principal exchangeable through June 30, 2026; the company reclassified the full balance to current liabilities and recognized a $59 million non-cash induced conversion expense in the quarter.
On April 3, 2026, Seagate agreed in principle to settle the In re Seagate Technology Holdings plc Securities Litigation for a total of $175 million, of which approximately $70 million will be paid by the company's insurers. Seagate recorded a $105 million legal settlement charge in the quarter; the settlement remains subject to court approval and execution of a definitive agreement. Separately, on January 8, 2026, the Ninth Circuit reversed the district court's dismissal of Seagate's antitrust claims against NHK Spring Co. Ltd., an HDD suspension assembly supplier, remanding the case to allow the claims to proceed.
(Filed on January 30, 2026)
+21.5%
41.6%
$1B
Seagate reported Q2 FY2026 revenue of $2,825M (up 22% year-over-year) on 190 EB of HDD shipments (165 EB nearline, 25 EB non-nearline), with gross margin of 41.6% (vs. 35% in the prior-year quarter) and net income of $593M; operating cash flow for the quarter was $723M.
Beginning in fiscal 2026, the company reorganized its reporting into two end markets—Data Center (79% of Q2 revenue) and Edge IoT (21%)—to reflect growing AI-driven demand; the change was applied retrospectively and did not alter previously reported consolidated revenue.
On November 12, 2025, Seagate completed a privately negotiated exchange of $500M principal of its 3.50% 2028 Exchangeable Senior Notes for $500M cash and approximately 4.3M shares, recognizing a $66M non-cash induced conversion expense in the quarter; the remaining $1.0B of 2028 Notes had its conditional conversion option triggered as of December 31, 2025, making them exchangeable through March 31, 2026 and reclassified as a current liability on the balance sheet.
Management characterized the quarter as one of strong demand, particularly for high-capacity nearline drives across global cloud customers, driven by AI-related workloads (inferencing, training, and model integrity); the company also noted $3M of restructuring charges, primarily employee termination benefits.
Looking ahead within fiscal 2026, the company expects capital expenditures to be higher than fiscal 2025 to support the volume ramp of HDDs utilizing heat-assisted magnetic recording (HAMR) technology, while remaining within its 4-6% of revenue capex target range.
(Filed on October 31, 2025)
+21.3%
39.4%
$1.1B
Shipped 181.5 EB of HDD storage (159.3 EB nearline, 22.2 EB non-nearline) in the 14-week quarter; Data Center contributed 80% of revenue (vs. 76% in the prior quarter and 73% a year earlier), with management attributing demand growth to global cloud customers building out infrastructure for AI inferencing and training workloads.
Revenue of $2.63 billion rose $185 million quarter-over-quarter and $461 million year-over-year, driven by higher nearline Data Center exabytes shipped and favorable pricing actions; gross margin expanded to 39.4% (from 37% prior quarter and 33% prior year) on pricing and favorable product mix.
Beginning in fiscal 2026, the company reorganized its end-market reporting into two categories—Data Center and Edge IoT—to better reflect AI-driven demand; prior-period data were recast retrospectively, with no change to consolidated revenue.
The conditional conversion option on the $1.5 billion 3.50% Exchangeable Senior Notes due 2028 was triggered as of September 30, 2025, making the notes exchangeable through December 31, 2025 at a rate of 12.1335 shares per $1,000 (approximately $82.42 per share); the full $1.5 billion balance was reclassified to current liabilities, and the company noted potential cash-settlement impact on liquidity if holders elect to exchange.
Completed an Obligor Exchange on June 30, 2025, swapping eight series of Seagate HDD Cayman notes (the 'Old Notes') for identically-termed notes issued by Seagate Data Storage Technology Pte. Ltd. (the 'New Notes'), changing the issuer and adding Seagate HDD as an additional guarantor; immaterial third-party fees were recorded in the September 2025 quarter.
Capital expenditures were $105 million (versus $68 million in the prior-year quarter), and the company stated it expects FY2026 capex to be higher than FY2025; the quarter also included $13 million in restructuring charges, primarily employee termination benefits, and a $15 million payment under the 2023 BIS settlement.
