Free cash flow generation has surged to a 30.6% margin in 2026Q3, supported by an operating cash flow to net income ratio of 1.49 that reflects high-quality earnings conversion.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jul'22 | Jul'21 | Jul'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 |
|---|
| Cash from Operations | 2.88B | 1.08B | 918M | 942M | 1.66B | 1.63B | 1.71B | 1.76B | 2.11B | 1.92B | 1.68B | 2.65B | 2.56B | 3.05B | 3.26B | 1.26B | 1.93B | 823M | 2.54B | 943M | 1.46B | 1.43B | 635M | 882M | 905M | 390M |
| Operating CF Margin % | - | 11.91% | 14.01% | 12.76% | 14.21% | 15.22% | 16.31% | 16.95% | 18.89% | 17.79% | 15.05% | 19.27% | 18.64% | 21.23% | 21.84% | 11.52% | 16.95% | 8.39% | 19.97% | 8.3% | 15.83% | 18.91% | 10.2% | 13.6% | 14.87% | 6.54% |
| Operating CF Growth % | 1034.32% | 17.97% | -2.55% | -43.15% | 1.91% | -5.13% | -2.67% | -16.66% | 10.28% | 14.05% | -36.53% | 3.48% | -16.05% | -6.59% | 158.07% | -34.58% | 134.75% | -67.57% | 169.14% | -35.28% | 2.03% | 124.88% | -28% | -2.54% | 132.05% | - |
| Net Income | 2.38B | 1.47B | 335M | -529M | 1.65B | 1.31B | 1B | 2.01B | 1.18B | 772M | 248M | 1.74B | 1.57B | 1.84B | 2.86B | 511M | 1.61B | -3.09B | 1.26B | 913M | 840M | 707M | 529M | 641M | 153M | -522M |
| Depreciation & Amortization | 267M | 251M | 264M | 513M | 451M | 397M | 379M | 541M | 598M | 749M | 815M | 841M | 879M | 873M | 814M | 754M | 780M | 931M | 844M | 851M | 612M | 466M | 422M | 443M | 405M | 443M |
| Stock-Based Compensation | 218M | 200M | 127M | 115M | 145M | 112M | 109M | 99M | 112M | 137M | 120M | 137M | 118M | 76M | 51M | 51M | 57M | 83M | 113M | 128M | 90M | 0 | 63M | 63M | 0 | 0 |
| Deferred Taxes | -49M | -8M | 78M | 10M | -9M | -4M | -6M | -690M | 193M | 3M | -2M | 2M | -67M | -70M | -28M | 46M | -31M | 306M | 10M | -365M | 23M | 11M | 16M | -15M | 62M | 45M |
| Other Non-Cash Items | -18M | 136M | -272M | -329M | 64M | -49M | 110M | -94M | -11M | 69M | 35M | 67M | 59M | 56M | -13M | 18M | 91M | 2.29B | -15M | 99M | -32M | 8M | -187M | -29M | 249M | 1.8B |
| Working Capital Changes | 81M | -965M | 386M | 1.16B | -643M | -144M | 118M | -107M | 39M | 186M | 464M | -142M | -1M | 274M | -424M | -116M | -574M | 300M | 324M | -683M | -76M | 236M | -208M | -221M | 36M | -1.38B |
| Change in Receivables | -558M | -513M | 192M | 911M | -374M | -42M | -127M | 204M | 16M | 122M | 464M | -2M | 4M | 661M | -824M | -95M | -367M | 372M | -3M | 40M | -190M | 0 | -8M | -8M | -75M | 139M |
| Change in Inventory | -58M | -201M | -99M | 425M | -361M | -64M | -166M | 80M | -71M | -114M | 145M | 29M | -20M | 102M | 99M | -115M | -170M | 358M | -151M | 106M | -113M | 18M | -130M | 5M | -57M | 108M |
| Change in Payables | 178M | -242M | 227M | -421M | 228M | -14M | 394M | -268M | 65M | 121M | -24M | -58M | -190M | -538M | 157M | 386M | 2M | -79M | 351M | -391M | 91M | 0 | -99M | -99M | 0 | 177M |
| Cash from Investing | -499M | -276M | 126M | 217M | -352M | -466M | -635M | 846M | -1.59B | -459M | -1.21B | -1.29B | -322M | -825M | -1.11B | -981M | -752M | -618M | -991M | -402M | -561M | -1.07B | -962M | -754M | -610M | -311M |
| Capital Expenditures | -244M | -265M | -254M | -316M | -381M | -498M | -585M | -602M | -366M | -434M | -587M | -747M | -559M | -786M | -636M | -843M | -639M | -633M | -930M | -906M | -1.01B | -691M | -605M | -516M | -540M | -504M |
| CapEx % of Revenue | 2.22% | 2.91% | 3.88% | 4.28% | 3.27% | 4.66% | 5.57% | 5.79% | 3.27% | 4.03% | 5.26% | 5.44% | 4.07% | 5.48% | 4.26% | 7.68% | 5.61% | 6.46% | 7.32% | 7.98% | 10.95% | 9.15% | 9.72% | 7.96% | 8.87% | 8.45% |
| Acquisitions | -88M | -88M | 326M | 534M | 381M | 4M | 1M | 144M | 71M | 0 | -634M | -453M | -285M | -36M | -561M | 77M | 0 | 7M | -78M | -178M | 269M | 0 | 0 | 36M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -206M | 26M | 40M | 534M | -381M | 0 | 0 | 0 | -14M | 6M | 9M | -105M | -31M | 14M | 21M | 12M | 27M | 3M | 43M | 7M | -130M | -47M | -36M | -60M | -22M | 193M |
| Cash from Financing | -2.05B | -1.27B | -473M | -988M | -1.9B | -1.67B | -1.6B | -2.21B | -1.21B | -46M | -1.82B | -1.5B | -1.31B | -2.22B | -3.12B | 131M | -344M | 232M | -1.54B | -463M | -732M | -35M | 9M | 9M | -411M | -219M |
| Debt Issued (Net) | -1.29B | -678M | 212M | 22M | 499M | 967M | -143M | -574M | -214M | 916M | -22M | 170M | 1.06B | -238M | -670M | 947M | -225M | 694M | -34M | 1.07B | -340M | -3M | -6M | -2M | -213M | 0 |
| Equity Issued (Net) | -30M | 72M | 66M | -340M | -1.8B | -1.94B | -747M | -894M | -248M | -487M | -1.01B | -1.09B | -1.91B | -1.65B | -2.08B | -822M | -584M | 0 | -1.3B | -1.31B | -281M | 90M | 96M | 299M | 4M | 0 |
| Dividends Paid | -621M | -600M | -585M | -582M | -610M | -649M | -673M | -713M | -726M | -561M | -727M | -664M | -557M | -518M | -372M | -74M | 0 | -132M | -216M | -212M | -155M | -122M | -90M | -288M | 0 | 0 |
| Share Repurchases | -100M | 0 | 0 | -408M | -1.8B | -2.05B | -850M | -963M | -361M | -460M | -1.09B | -1.09B | -1.91B | -1.65B | -2.43B | -822M | -584M | 0 | -1.48B | -1.53B | -399M | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -107M | -68M | -166M | -88M | 11M | -52M | -42M | -31M | -23M | 86M | -60M | 86M | 102M | 188M | 6M | 80M | 465M | -384M | 6M | -16M | 44M | 0 | 9M | 0 | -202M | -219M |
| Net Change in Cash | 331M | -467M | 572M | 171M | -594M | -513M | -527M | 394M | -686M | 1.41B | -1.35B | -155M | 926M | 1M | -970M | 414M | 836M | 437M | 2M | 78M | 164M | 324M | -327M | 137M | -114M | -142M |
| Free Cash Flow | 2.63B | 818M | 664M | 626M | 1.28B | 1.13B | 1.13B | 1.16B | 1.75B | 1.48B | 1.09B | 1.9B | 2B | 2.26B | 2.63B | 421M | 1.29B | 190M | 1.61B | 37M | 449M | 737M | 30M | 366M | 365M | -114M |
| FCF Margin % | 23.91% | 8.99% | 10.14% | 8.48% | 10.94% | 10.56% | 10.74% | 11.15% | 15.62% | 13.76% | 9.79% | 13.83% | 14.57% | 15.75% | 17.58% | 3.84% | 11.35% | 1.94% | 12.65% | 0.33% | 4.88% | 9.76% | 0.48% | 5.64% | 6% | -1.91% |
| FCF Growth % | 240.62% | 23.19% | 6.07% | -50.94% | 13.12% | -0.09% | -2.59% | -33.66% | 17.88% | 35.59% | -42.47% | -4.95% | -11.59% | -13.9% | 523.75% | -67.44% | 580.53% | -88.18% | 4245.95% | -91.76% | -39.08% | 2356.67% | -91.8% | 0.27% | 420.18% | - |
| FCF per Share | 11.50 | 3.77 | 3.13 | 3.02 | 5.70 | 4.60 | 4.26 | 4.07 | 5.98 | 4.96 | 3.62 | 5.74 | 5.76 | 5.92 | 5.95 | 0.90 | 2.52 | 0.39 | 2.99 | 0.06 | 0.86 | 1.47 | 0.06 | 0.78 | 0.85 | -0.25 |
| FCF Conversion (FCF/Net Income) | 1.11x | 0.74x | 2.74x | -1.78x | 1.00x | 1.24x | 1.71x | 0.88x | 1.79x | 2.48x | 6.77x | 1.52x | 1.63x | 1.66x | 1.14x | 2.47x | 1.20x | -0.27x | 2.01x | 1.03x | 1.73x | 2.02x | 1.20x | 1.38x | 5.92x | -0.75x |
| Interest Paid | 0 | 324M | 303M | 327M | 244M | 184M | 226M | 223M | 237M | 172M | 200M | 216M | 198M | 219M | 221M | 193M | 138M | 118M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 42M | 30M | 32M | 33M | 44M | 51M | 39M | 43M | 33M | 40M | 285M | 50M | 48M | 8M | 18M | 14M | 10M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Hyperscale demand cyclicality
As reported in recent financial filings, Seagate's operating cash flow to net income ratio reached 1.49 in 2026Q3, indicating that cash generation is currently outpacing accounting profits as the company benefits from favorable working capital movements and high-margin mass-capacity product sales.
The consistent ability to convert net income into cash at a ratio exceeding 1.0 suggests that the company's earnings are supported by tangible cash inflows rather than non-cash accruals. Investors should monitor whether this conversion efficiency persists if the current hyperscale procurement cycle begins to moderate.
Based on quarterly data, Seagate's free cash flow margin has surged to 30.6% in 2026Q3, a significant improvement from the 1.2% margin observed in 2025Q1, highlighting the company's ability to generate substantial liquidity during periods of peak manufacturing utilization.
This trajectory underscores the high operating leverage inherent in the HDD manufacturing model, where incremental revenue growth flows disproportionately to the bottom line. The rapid expansion of FCF margins appears to be a direct result of the successful ramp-up of high-density nearline drives.
According to recent SEC filings, Seagate's capital expenditure as a percentage of revenue has remained relatively disciplined at 5.2% in 2026Q3, suggesting that the company is managing its transition to HAMR technology without requiring excessive, margin-dilutive investment in new manufacturing capacity.
Maintaining capital intensity at these levels is critical for preserving free cash flow, especially given the competitive necessity of continuous R&D. The current spending profile appears to prioritize efficiency gains over aggressive footprint expansion, which may help protect margins during future cyclical downturns.
As indicated by the $173 million working capital inflow in 2026Q3, Seagate has successfully optimized its cash conversion cycle, reversing the significant outflows seen in previous periods when inventory build-ups were necessary to support new product launches.
The volatility in working capital changes suggests that the company's cash position is highly sensitive to the timing of hyperscale inventory digestion. Analysts should interpret these inflows as a sign of improved supply chain synchronization rather than a permanent structural change in cash requirements.
Based on reported figures, Seagate returned $232 million to shareholders through dividends and buybacks in 2026Q3, demonstrating a consistent commitment to capital return despite the inherent cyclicality of the storage hardware industry and the ongoing need for R&D investment.
This aggressive deployment strategy may limit the company's financial flexibility, particularly if the current cloud spending cycle faces a sudden contraction. Investors should monitor whether management maintains this payout level if free cash flow generation experiences a cyclical decline in future quarters.
Quick answers to the most common questions about buying STX stock.
Seagate Technology Holdings plc (STX) generated $1.08B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Seagate Technology Holdings plc (STX) generated $818.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Seagate Technology Holdings plc (STX) spent $265.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Seagate Technology Holdings plc (STX) returned $600.0M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.