Q1 2026 Seagate Technology Holdings PLC Earnings Call Transcript
Key Points
- Seagate Technology Holdings PLC (STX) reported a 21% year-over-year revenue growth, indicating strong business performance.
- The company achieved a record non-GAAP gross margin of 40.1%, showcasing improved operational efficiency.
- Non-GAAP operating margin increased to 29%, a level last seen in fiscal 2012, reflecting enhanced profitability.
- Seagate announced a 3% increase in its quarterly dividend, demonstrating confidence in its cash flow generation capabilities.
- The demand for high-capacity hard drives is strong, driven by global cloud service providers and enterprise customers, with 80% of revenue coming from the data center market.
- Seagate Technology Holdings PLC (STX) faces tight supply conditions, which may limit its ability to meet the growing demand.
- The transition to HAMR technology involves complex product transitions that could temporarily reduce unit capacity.
- There are uncertainties in predicting the exact demand trajectory for AI-driven storage needs, which could impact future planning.
- The company is not adding unit capacity, which might constrain its ability to capitalize on increasing demand.
- Seagate's revenue guidance range has been tightened, indicating potential challenges in forecasting future performance.
Welcome to the Seagate Technology Fiscal first quarter 2026 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 Chair and Chief Executive Officer; and Gianluca Romano, our Chief Financial Officer. We've posted our earnings press release and detailed supplemental information for our September quarter results on the Investors section of our website.
During today's call, we will 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 material items that may impact these measures are out of our control and or cannot be reasonably
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