Seagate Highlights Strategy to Build Long-Term Value

Summary:

Sets new financial targets through FY2028, underpinned by the adoption of Seagate’s first-to-market HAMR technology and continued focused execution
Unveils differentiated product roadmap, with clear path from Mozaic 3+TB/disk to 10TB/disk
Increases share repurchase authorization to $5 billion

Seagate Technology Holdings plc hosted on May 22 its 2025 Investor and Analyst Event and outlined the Company’s clear strategy to capture growth opportunities ahead, drive profitability and build long-term value for customers and shareholders.

Seagate Highlights Strategy To Build Long Term Value

“Technology innovation and AI are fueling exponential data growth and driving demand for the HDD storage industry. Seagate today is uniquely positioned to capture this opportunity with our Mozaic portfolio powered by market-leading HAMR technology. Our differentiated portfolio addresses critical data center challenges, including cost, scale and sustainability, enabling us to deliver storage solutions for customers from cloud to edge,” said Dave Mosley, CEO, Seagate.

“Since our last Investor and Analyst Event in 2021, we have made structural improvements to extend demand visibility, maintain supply discipline, optimize product mix, and streamline cost structure. We are a stronger company today thanks to the dedicated efforts of our global team. This is an incredibly exciting time at Seagate, and we are confident we have the right technology and strategy to lead the next era of storage in today’s data-driven world, while delivering enhanced value to shareholders,” concluded Mosley.

New Financial Targets
During the event, the Company outlined new financial targets for the period through FY2028, which are supported by the adoption of HAMR technology.

	Target Performance ⁽¹⁾
Revenue	Low-to-mid teens CAGR
Gross Margin (Non-GAAP)	40% with further expansion opportunity, and Incremental margin of ~50%, starting at $2.6 billion in quarterly revenue
Operating Expenses (Non-GAAP)	~10% of revenue
Capital Expenditures	4-6% of revenue
Capital Returns	>75% of free cash flow

⁽¹⁾Target performance covers period through FY2028. Revenue CAGR corrected to reflect period covering FY2025-FY2028.

Increased Share Repurchase Authorization
Additionally, Seagate also announced that its Board of Directors has increased Seagate’s share repurchase authorization to $5 billion, underscoring its commitment to capital returns and confidence in the future. The authorization does not have a time limit and any share repurchases will be dependent on Seagate’s financial position, results of operations, available cash, cash flow, capital requirements, distributable reserves, and other factors deemed relevant by the Company.

The replay from 2025 Investor and Analyst Event can be accessed on Seagate’s Investor Relations website.