Seagate Technology: Fiscal 3Q26 Financial Results

Seagate Technology Holdings plc, a reference innovator of mass-capacity data storage, reported financial results for its fiscal third quarter ended April 3, 2026.

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“Seagate delivered outstanding March quarter results, exceeding the high end of our revenue and EPS guidance, achieving record margin performance, and generating close to $1 billion in free cash flow,” said Dave Mosley, chair and CEO, Seagate.

“We believe Seagate is entering a new era of structural growth as AI applications amplify data creation and support sustained storage demand. Our areal density-driven product strategy enables us to deliver higher-capacity, energy- and capital-efficient storage at scale. Through disciplined execution, we are strategically positioned to capture these opportunities, and drive profitable growth and long-term value creation,” Mosley concluded.

Quarterly Financial Results

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For definitions and a detailed reconciliation of GAAP to non-GAAP results, see accompanying financial tables.

During the fiscal third quarter, the company generated $1.1 billion in cash flow from operations and $953 million in free cash flow. Seagate’s balance sheet remains healthy, and during the fiscal third quarter, the company retired approximately $641 million in debt and returned $191 million to shareholders through dividends and share repurchases. As of the end of the quarter, cash and cash equivalents totaled $1.1 billion, and there were 224 million ordinary shares issued and outstanding.

Seagate has issued a supplemental financial information document, which is available on Seagate’s investor relations website at investors.seagate.com.

Quarterly Cash Dividend
The board of directors of the company declared a quarterly cash dividend of $0.74 per share, which will be payable on July 7, 2026 to shareholders of record as of the close of business on June 24, 2026. The payment of any future quarterly dividends will be at the discretion of the board and will be dependent upon Seagate’s financial position, results of operations, available cash, cash flow, capital requirements and other factors deemed relevant by the board.

Business Outlook
The business outlook for the fiscal fourth quarter 2026 is based on our current assumptions and expectations; actual results may differ materially as a result of, among other things, the important factors discussed in the cautionary note regarding forward-looking Statements section of this release.

The company is providing the following guidance for its fiscal fourth quarter 2026:

• Revenue of $3.45 billion, plus or minus $100 million
• Non-GAAP diluted EPS of $5.00, plus or minus $0.20

Our fiscal fourth quarter guidance includes:

• The estimated net dilutive impact from the exchangeable senior notes due 2028; and
• Minimal expected impact from global tariff policies and/or the current conflict in the Middle East as of the date of this release

Guidance regarding non-GAAP diluted EPS excludes known pre-tax charges related to estimated share-based compensation expenses of $0.23 per share.

We have not reconciled our non-GAAP diluted EPS guidance for fiscal fourth quarter 2026 to the most directly comparable GAAP measure, other than estimated share-based compensation expenses, because material items that may impact these measures are out of our control and/or cannot be reasonably predicted, including, but not limited to, net (gain) loss from debt transactions, strategic investment losses (gains) or impairment charges, income tax adjustments on these measures, and other charges or benefits that may arise. The amounts of these measures are not currently available but may be material to future results. A reconciliation of our historical non-GAAP financial measures to their nearest GAAP equivalent is contained in this release.