- Seagate Technology (STX, Financial) sets new financial targets through FY2028, leveraging HAMR technology.
- The company increases share repurchase authorization to $5 billion.
- Seagate unveils product roadmap from Mozaic 3+TB/disk to 10TB/disk.
Seagate Technology Holdings plc (STX) held its 2025 Investor and Analyst Event, announcing an ambitious strategy to build long-term value in the data storage sector. The company is capitalizing on exponential data growth driven by technology innovation and AI, aiming for robust revenue growth supported by its market-leading HAMR technology.
The company has set new financial targets through FY2028, aiming for a low-to-mid teens CAGR in revenue, with a 40% non-GAAP gross margin and an incremental margin starting at $2.6 billion in quarterly revenue. Operating expenses are targeted to be around 10% of revenue, while capital expenditures are expected to be within 4-6% of revenue. Additionally, Seagate plans to return over 75% of its free cash flow to shareholders.
In support of its growth strategy, Seagate further announced an increase in its share repurchase authorization to $5 billion, reflecting confidence in its financial position and future growth prospects. This authorization does not have a time limit and will depend on various financial and strategic factors.
The event also highlighted Seagate’s plan to address data center challenges such as cost, scale, and sustainability through its differentiated Mozaic product portfolio powered by HAMR technology, ultimately delivering comprehensive storage solutions from cloud to edge.
