Seagate Reports Fiscal Q1 2027 Results: $4.2 Billion Revenue, Record Profitability and Free Cash Flow
Seagate Q1 FY27 revenue hit $4.2B with $7.59 GAAP EPS and $1.5B FCF; guides Q2 revenue to $4.8B.
Seagate Technology Holdings plc (NASDAQ: STX) reported its financial results for the fiscal first quarter ended October 2, 2026, on October 28, 2026. The quarter saw revenue of $4.2 billion, a GAAP gross margin of 57.3%, and a non-GAAP gross margin of 57.8%. GAAP diluted earnings per share (EPS) was $7.59, while non-GAAP diluted EPS was $7.68. Cash flow from operations reached $1.7 billion, and free cash flow was $1.5 billion.
Dave Mosley, Seagate's chair and chief executive officer, stated that the company delivered another quarter of record profitability and its highest ever free cash flow in the September quarter, demonstrating the earnings power of the business amid a strengthening demand environment. Mosley noted that data creation, retention, and reuse continue to compound storage demand, with long-term customer demand visibility reinforcing the view of a multi-year growth phase. The HAMR-based technology roadmap enables the company to address growing exabyte demand through areal density gains while maintaining supply discipline.
Regarding capital allocation, Seagate retired approximately $1.2 billion in principal debt during the fiscal first quarter, lowering gross debt to $2.4 billion. The company returned $568 million to shareholders through dividends and share repurchases and increased its quarterly cash dividend by approximately 3% to $0.76 per share. As of the end of the quarter, cash and cash equivalents totaled $1.3 billion, with 230 million ordinary shares issued and outstanding. Subsequent to the quarter-end, the company retired an additional $750 million of principal debt, bringing gross debt down to $1.6 billion.
For the fiscal second quarter of 2027, Seagate provided the following business outlook: revenue of $4.8 billion, plus or minus $100 million, and non-GAAP diluted EPS of $9.20, plus or minus $0.20. This guidance excludes known pre-tax charges related to estimated share-based compensation expenses.