Seagate Technology plc Q1 2027 Earnings Recap

Seagate’s shares rose 4.5% after earnings, with the quarter’s record margins and $7.68 non-GAAP EPS supporting confidence in its outlook. Management expects sequential revenue growth and gross-margin expansion through fiscal 2027, though nearline shipment growth may vary as new products ramp.

Key Takeaways

• Revenue grew more than 60% year over year, while non-GAAP EPS nearly tripled to a record $7.68.
• Gross and operating margins reached records; free cash flow was nearly $1.5 billion.
• Data center and edge IoT revenue rose 18% and 13% sequentially, respectively; data center customers accounted for 90% of shipped capacity.
• Seagate shipped a record 198 exabytes of nearline capacity in the September quarter and expects a meaningful step-up in December. The company expects mid-20% compound growth in nearline exabyte supply, while noting quarterly growth may vary.
• The vast majority of nearline supply is allocated under long-term agreements through 2028, with some cloud customer agreements extending through 2030. The board also raised the quarterly dividend to $0.76 per share.