Q3 2025 Seagate Technology Holdings PLC Earnings Call Transcript
Key Points
- Seagate Technology Holdings PLC (STX) reported a 31% year-on-year increase in revenue and an 81% growth in non-GAAP gross profit dollars.
- The company expanded its gross margin for the eighth consecutive quarter, achieving the third highest operating margin in its history.
- Seagate's HAMR-based Mozaic drives, the industry's only 3 terabyte per disk products, are ramping up volume to qualified customers.
- The company has strong demand visibility into the first half of calendar 2026, with new build-to-order agreements being negotiated.
- Seagate is effectively managing its debt, having retired approximately $536 million during the quarter, and plans to continue reducing debt in the coming quarters.
- Revenue for the March quarter was down 7% sequentially, limited by temporary supply constraints.
- Mass capacity shipments were down 5% sequentially, despite a 50% year-on-year increase.
- There is potential risk from tariffs, which could impact customer buying decisions and financial performance in future quarters.
- Non-GAAP operating expenses are expected to increase in the September quarter due to an additional week in the period.
- The company faces challenges in maintaining supply-demand balance and managing operational issues that previously affected supply.
Welcome to the Seagate Technology fiscal third quarter 2025 conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Shanye Hudson, Senior Vice President, Investor Relations. Please go ahead.
Thank you. Hello, everyone, and welcome to today's call. Joining me are Dave Mosley, Seagate's Chief Executive Officer; and Gianluca Romano, our Chief Financial Officer. We've posted our earnings press release and the detailed supplemental information for our March quarter results on the Investors section of our website.
During today's call, we'll refer to GAAP and non-GAAP measures. Non-GAAP figures are reconciled to GAAP figures in the earnings press release posted on our website and included in our Form 8-K. We've not reconciled certain non-GAAP outlook measures because the material items that may impact these measures are out of our control and/or cannot be reasonably
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