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Seagate Tech (STX)
NASDAQ:STX
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Seagate Tech (STX) AI Stock Analysis

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STX

Seagate Tech

(NASDAQ:STX)

Rating:72Outperform
Price Target:
$183.00
▼(-2.74% Downside)
Seagate Tech's overall stock score is driven by strong earnings call results and positive technical analysis, indicating a bullish outlook. Financial performance shows recovery but is hindered by leverage concerns. Valuation suggests the stock is moderately expensive. The company's strategic advancements and positive guidance for fiscal 2026 contribute significantly to the score.
Positive Factors
Financial Performance
Driven by strong global cloud demand, Seagate posted upside results for the June quarter.
Product Qualification
STX announced the HAMR qualification of its fourth major cloud customer, up from three prior, now specifically three from the U.S. and one outside; with plans to qualify the global top seven cloud providers.
Revenue Growth
Seagate's revenue in the Americas showed a significant year-over-year increase of 91%.
Negative Factors
Revenue Concentration Risk
Seagate exited F2025 with one customer accounting for approximately 10% of the year's revenue, indicating a potential risk of revenue concentration.
Tax Rate Impact
The Pillar Two framework for the global minimum tax beginning in FY26 is expected to significantly raise Seagate’s corporate tax rate to a mid-teen percent.
Transparency
Seagate did not disclose its sales by channel with its earnings release starting F1Q25, which could reduce transparency for investors.

Seagate Tech (STX) vs. SPDR S&P 500 ETF (SPY)

Seagate Tech Business Overview & Revenue Model

Company DescriptionSeagate Technology Holdings PLC (STX) is a leading provider of data storage solutions, specializing in hard disk drives (HDDs), solid-state drives (SSDs), and storage systems. The company operates primarily in the data storage sector and serves a diverse range of markets, including consumer electronics, enterprise, cloud storage, and data centers. Seagate's core products include high-capacity HDDs for both personal and enterprise use, as well as a range of SSDs designed for performance-sensitive applications.
How the Company Makes MoneySeagate generates revenue primarily through the sale of its storage devices, including HDDs and SSDs, which are sold to various customer segments such as OEMs (Original Equipment Manufacturers), retailers, and direct consumers. The company benefits from a strong presence in the data center market, providing storage solutions that cater to the growing demand for cloud services and big data analytics. Key revenue streams include the sales of products for consumer applications, business storage solutions, and enterprise-grade storage systems. Additionally, Seagate has established significant partnerships with major tech firms and cloud service providers, enhancing its market reach and driving sales. The company's ability to innovate and adapt to changing technology trends also plays a crucial role in maintaining its revenue growth.

Seagate Tech Key Performance Indicators (KPIs)

Any
Any
Revenue Share by Channel
Revenue Share by Channel
Reveals the distribution of sales across various sales channels, indicating the company's reliance on certain sales strategies and potential areas for expansion.
Chart InsightsSeagate's OEM channel has shown a strong upward trend, peaking in 2024, while distributors and retailers have seen a decline. The earnings call highlights robust revenue and profit growth, driven by mass capacity storage demand and successful HAMR technology ramp-up. Despite a sequential revenue dip due to supply constraints, the company remains optimistic, projecting significant revenue and EPS growth. This strategic focus on OEMs and mass capacity aligns with their positive outlook, suggesting a potential shift in channel strategy to capitalize on high-demand segments.
Data provided by:Main Street Data

Seagate Tech Earnings Call Summary

Earnings Call Date:Jul 29, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive outlook with strong financial performance, record revenue growth, and strategic advancements in technology adoption. However, concerns around debt levels, tax implications, and challenges in new technology ramp-up moderate the overall sentiment.
Q4-2025 Updates
Positive Updates
Strong Financial Performance
Seagate achieved a 30% year-over-year revenue growth and record gross margins, marking a ninth consecutive quarter of improvement. The fiscal year saw a 39% revenue increase, with non-GAAP gross profit nearly doubling and operating profit more than tripling.
HAMR Technology Adoption
Seagate began the high-volume ramp of two new nearline platforms, including the industry's first heat-assisted magnetic recording (HAMR) hard drive, aligning with data growth driven by AI-supported applications.
Strong Cloud Demand
Seagate reported strong global cloud demand, with nearline exabyte production capacity largely spoken for through the middle of the next calendar year.
Record Quarterly Sales
Achieved record quarterly sales and volume shipments for any nearline product with the PMR 24 to 28 terabyte platform.
Capital Returns to Shareholders
The company plans to resume share repurchases later in the quarter, enhancing capital returns to shareholders.
Negative Updates
Debt and Cash Flow Concerns
Despite reducing debt by $150 million, the company maintains a significant gross debt of approximately $5 billion.
Global Minimum Tax Impact
Starting in fiscal 2026, the company will be subject to a global minimum tax rate in the mid-teens, potentially impacting profitability.
Challenges in HAMR Ramp
There are ongoing challenges in aligning HAMR capacity ramp with qualifications and demand, potentially impacting future growth.
Slight Revenue Guidance Miss
Guided revenue for the September quarter was slightly below consensus, despite strong demand.
Company Guidance
During the fiscal fourth quarter of 2025, Seagate Technology reported impressive financial results, marked by a 30% year-over-year revenue growth and record gross margins. The company achieved non-GAAP earnings per share near historic highs and strong free cash flow. For the entire fiscal year, revenue increased by 39%, with non-GAAP gross profit dollars nearly doubling and operating profit more than tripling. Seagate's focus on supply-demand alignment and cost discipline was highlighted as key factors behind one of its most profitable years. Looking ahead to fiscal 2026, the company expects to enhance profitability and cash generation, with plans to resume share repurchases. Seagate began the high-volume ramp of two new nearline platforms, including the first heat-assisted magnetic recording (HAMR) hard drive, which aligns well with growing data demands from traditional compute workloads and AI applications. The company's build-to-order strategy has ensured that its nearline exabyte production capacity is largely spoken for through the middle of the next calendar year. Seagate is optimistic about continued demand from cloud and edge data centers, driven by AI-driven strategic imperatives, with ongoing investments in innovation and a strong technology roadmap positioning it well for future growth.

Seagate Tech Financial Statement Overview

Summary
Seagate Tech's financial performance shows a mixed picture. The income statement indicates revenue recovery and improved gross profit margins, but profitability remains moderate. The balance sheet highlights significant leverage and financial instability, posing risks. However, strong cash flow generation provides a cushion, supporting operations and potential debt servicing. Overall, while there are positive trends, the company needs to address its leverage to ensure long-term financial health.
Income Statement
65
Positive
Seagate Tech has shown a positive revenue growth rate of 6.52% in the latest year, recovering from previous declines. The gross profit margin improved to 35.18%, indicating better cost management. However, the net profit margin is moderate at 16.15%, and EBIT margin is not available, suggesting potential operational challenges. Overall, the income statement reflects a recovery trajectory with room for improvement in profitability.
Balance Sheet
40
Negative
The balance sheet reveals significant leverage with a negative stockholders' equity, resulting in a high debt-to-equity ratio of -11.03. This indicates financial instability and potential risk. The return on equity is negative, reflecting losses in equity value. The equity ratio is not available due to negative equity, highlighting the need for financial restructuring.
Cash Flow
75
Positive
Seagate Tech's cash flow is strong, with a 40.10% growth in free cash flow, indicating improved liquidity. The operating cash flow to net income ratio is 0.41, and the free cash flow to net income ratio is 1.0, suggesting efficient cash generation relative to profits. The cash flow statement is a positive aspect of the company's financials, supporting operational needs.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue9.10B9.10B6.55B7.38B11.66B10.68B
Gross Profit3.20B3.20B1.54B1.42B3.47B2.92B
EBITDA2.08B2.08B1.04B330.00M2.38B1.97B
Net Income1.47B1.47B335.00M-529.00M1.65B1.31B
Balance Sheet
Total Assets8.02B8.02B7.74B7.56B8.94B8.68B
Cash, Cash Equivalents and Short-Term Investments891.00M891.00M1.36B786.00M617.00M1.21B
Total Debt5.00B5.00B5.67B5.83B5.70B5.19B
Total Liabilities8.48B8.48B9.23B8.76B8.84B8.04B
Stockholders Equity-453.00M-453.00M-1.49B-1.20B109.00M631.00M
Cash Flow
Free Cash Flow818.00M818.00M664.00M626.00M1.28B1.13B
Operating Cash Flow1.08B1.08B918.00M942.00M1.66B1.63B
Investing Cash Flow-276.00M-276.00M126.00M217.00M-352.00M-466.00M
Financing Cash Flow-1.27B-1.27B-473.00M-988.00M-1.90B-1.67B

Seagate Tech Technical Analysis

Technical Analysis Sentiment
Positive
Last Price188.16
Price Trends
50DMA
154.53
Positive
100DMA
130.33
Positive
200DMA
110.98
Positive
Market Momentum
MACD
8.17
Negative
RSI
78.08
Negative
STOCH
98.45
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STX, the sentiment is Positive. The current price of 188.16 is above the 20-day moving average (MA) of 163.44, above the 50-day MA of 154.53, and above the 200-day MA of 110.98, indicating a bullish trend. The MACD of 8.17 indicates Negative momentum. The RSI at 78.08 is Negative, neither overbought nor oversold. The STOCH value of 98.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STX.

Seagate Tech Risk Analysis

Seagate Tech disclosed 33 risk factors in its most recent earnings report. Seagate Tech reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Seagate Tech Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$23.72B21.00123.00%1.75%3.45%9.69%
74
Outperform
$31.39B18.7625.98%0.22%2.12%
73
Outperform
$27.42B10.6884.33%3.90%3.11%-3.54%
72
Outperform
$39.13B27.18-109.27%1.52%38.86%337.22%
67
Neutral
$24.19B24.3517.90%47.04%-17.89%
65
Neutral
$25.89B194.5710.04%11.31%-1.30%
61
Neutral
$35.55B8.88-11.05%1.87%8.55%-8.14%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
STX
Seagate Tech
188.16
89.58
90.87%
HPQ
HP
29.34
-3.56
-10.82%
NTAP
NetApp
118.75
6.42
5.72%
SMCI
Super Micro Computer
40.41
-0.58
-1.41%
WDC
Western Digital
92.04
44.87
95.12%
PSTG
Pure Storage
79.23
32.84
70.79%

Seagate Tech Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Seagate Tech Appoints Thomas Szlosek to Board
Positive
Aug 26, 2025

On August 23, 2025, Seagate Technology appointed Thomas Szlosek to its Board of Directors and the Audit and Finance Committee. Szlosek, with over 30 years of financial leadership experience, is expected to enhance Seagate’s strategic direction with his expertise in diverse industries. This appointment reflects Seagate’s commitment to strengthening its governance and operational capabilities.

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Seagate Tech Reports Strong Fiscal 2025 Results
Positive
Jul 30, 2025

Seagate Technology announced strong financial results for fiscal 2025, with a 30% year-over-year revenue growth in the June quarter and record gross margins. The company attributed its success to the adoption of HAMR technology and a robust product pipeline, positioning it well for continued profitability and cash generation in fiscal 2026. Seagate’s strategic focus on cloud and edge data centers, driven by AI and data sovereignty trends, underpins its growth prospects. The company plans to resume share repurchases, reflecting confidence in its future performance, and is advancing its HAMR-based technology to meet increasing demand for mass data storage.

DividendsBusiness Operations and StrategyFinancial Disclosures
Seagate Tech Reports Strong Q4 2025 Financial Results
Positive
Jul 29, 2025

On July 29, 2025, Seagate Technology announced its fiscal fourth quarter and fiscal year 2025 financial results, highlighting a 30% year-over-year revenue increase and record gross margins. The company declared a quarterly cash dividend of $0.72 per share, payable on October 9, 2025, and reported significant cash flow and debt reduction achievements. Seagate’s strong performance reflects structural enhancements and ongoing demand from cloud customers, positioning the company for future growth in mass data storage.

Executive/Board ChangesBusiness Operations and Strategy
Seagate Tech Appoints CEO Dave Mosley as Chairman
Positive
Jul 28, 2025

On July 28, 2025, Seagate Technology announced that CEO Dave Mosley will become the Chairman of the Board following the company’s 2025 Annual General Meeting, succeeding Michael R. Cannon, who will become Lead Independent Director. This leadership change reflects the Board’s confidence in Mosley’s strategic vision and aims to guide Seagate through its next phase of growth, leveraging his extensive experience and leadership to drive innovation in data storage technology.

Private Placements and FinancingBusiness Operations and Strategy
Seagate Tech Completes Senior Notes Exchange Offers
Positive
Jun 30, 2025

On June 27, 2025, Seagate Technology Holdings plc announced the completion of its exchange offers and consent solicitations for its senior notes, which involved exchanging old notes for new ones issued by Seagate Data Storage Technology Pte. Ltd. This move, finalized on June 30, 2025, involved significant amendments to the indentures governing the old notes, including the elimination of restrictive covenants and certain default provisions. The successful exchange and amendments are expected to streamline Seagate’s financial structure and enhance its market positioning.

Private Placements and FinancingBusiness Operations and Strategy
Seagate Tech Redeems Senior Notes in Debt Restructuring
Neutral
Jun 16, 2025

On June 11, 2025, Seagate HDD Cayman, a subsidiary of Seagate Technology Holdings, redeemed all its outstanding 4.875% Senior Notes due 2027, effectively satisfying all obligations under the related indenture. The company also announced early results and amendments to its exchange offers for eight series of senior notes, aiming to exchange them for new notes issued by Seagate Data Storage Technology Pte. Ltd. This move is part of a strategic financial restructuring to improve the company’s debt profile, potentially impacting stakeholders by altering the terms of existing debt agreements.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 27, 2025