Operating leverage has scaled significantly, with gross margins expanding to 46.5% in 2026Q3 as the company maintains disciplined SG&A expenses at $143 million despite rapid top-line growth.
| 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 |
|---|
| Sales/Revenue | 11.01B | 9.1B | 6.55B | 7.38B | 11.66B | 10.68B | 10.51B | 10.39B | 11.18B | 10.77B | 11.16B | 13.74B | 13.72B | 14.35B | 14.94B | 10.97B | 11.39B | 9.8B | 12.71B | 11.36B | 9.21B | 7.55B | 6.22B | 6.49B | 6.09B | 5.97B |
| Revenue Growth % | 28.92% | 38.86% | -11.28% | -36.68% | 9.18% | 1.64% | 1.15% | -7.1% | 3.83% | -3.49% | -18.77% | 0.11% | -4.37% | -3.94% | 36.17% | -3.72% | 16.22% | -22.84% | 11.87% | 23.4% | 21.89% | 21.35% | -4.04% | 6.55% | 2.03% | - |
| Cost of Goods Sold | 6.44B | 5.9B | 5.01B | 5.97B | 8.19B | 7.76B | 7.67B | 7.46B | 7.82B | 7.6B | 8.54B | 9.93B | 9.88B | 10.41B | 10.26B | 8.82B | 8.19B | 8.39B | 9.5B | 9.18B | 7.07B | 5.88B | 4.76B | 4.76B | 4.49B | 0 |
| COGS % of Revenue | - | 64.82% | 76.55% | 80.8% | 70.25% | 72.69% | 72.96% | 71.78% | 69.92% | 70.53% | 76.57% | 72.28% | 71.98% | 72.55% | 68.65% | 80.44% | 71.88% | 85.62% | 74.78% | 80.77% | 76.79% | 77.85% | 76.56% | 73.37% | 73.83% | - |
| Gross Profit | 4.57B | 3.2B | 1.54B | 1.42B | 3.47B | 2.92B | 2.84B | 2.93B | 3.36B | 3.17B | 2.62B | 3.81B | 3.85B | 3.94B | 4.68B | 2.15B | 3.2B | 1.41B | 3.21B | 2.19B | 2.14B | 1.67B | 1.46B | 1.73B | 1.59B | 5.97B |
| Gross Margin % | 41.54% | 35.18% | 23.45% | 19.2% | 29.75% | 27.31% | 27.04% | 28.22% | 30.08% | 29.47% | 23.43% | 27.72% | 28.02% | 27.45% | 31.35% | 19.56% | 28.12% | 14.38% | 25.22% | 19.23% | 23.21% | 22.15% | 23.44% | 26.63% | 26.17% | 100% |
| Gross Profit Growth % | - | 108.33% | 8.32% | -59.12% | 18.92% | 2.64% | -3.07% | -12.84% | 5.99% | 21.38% | -31.35% | -0.96% | -2.39% | -15.88% | 118.27% | -33.02% | 127.23% | -56.01% | 46.68% | 2.25% | 27.73% | 14.67% | -15.52% | 8.41% | -73.3% | - |
| Operating Expenses | 1.46B | 1.31B | 1.08B | 1.76B | 1.51B | 1.43B | 1.54B | 1.45B | 1.73B | 2.12B | 2.17B | 1.75B | 2.07B | 1.85B | 1.57B | 1.32B | 1.46B | 4.04B | 1.83B | 1.57B | 1.26B | 951M | 1.01B | 1.04B | 1.22B | 6.66B |
| OpEx % of Revenue | - | 14.4% | 16.55% | 23.84% | 12.96% | 13.34% | 14.67% | 13.91% | 15.47% | 19.68% | 19.44% | 12.74% | 15.08% | 12.87% | 10.52% | 12.05% | 12.85% | 41.25% | 14.39% | 13.83% | 13.68% | 12.59% | 16.31% | 15.97% | 19.96% | 111.68% |
| Selling, General & Admin | 584M | 561M | 460M | 491M | 559M | 502M | 473M | 453M | 562M | 606M | 635M | 857M | 722M | 635M | 506M | 445M | 437M | 537M | 659M | 589M | 447M | 306M | 290M | 357M | 498M | 0 |
| SG&A % of Revenue | - | 6.17% | 7.02% | 6.65% | 4.79% | 4.7% | 4.5% | 4.36% | 5.03% | 5.63% | 5.69% | 6.24% | 5.26% | 4.42% | 3.39% | 4.06% | 3.84% | 5.48% | 5.19% | 5.18% | 4.86% | 4.05% | 4.66% | 5.5% | 8.18% | - |
| Research & Development | 746M | 724M | 654M | 797M | 941M | 903M | 973M | 991M | 1.03B | 1.23B | 1.24B | 1.35B | 1.23B | 1.13B | 1.01B | 875M | 877M | 953M | 1.03B | 904M | 805M | 645M | 666M | 670M | 698M | 0 |
| R&D % of Revenue | - | 7.96% | 9.98% | 10.79% | 8.07% | 8.45% | 9.26% | 9.54% | 9.17% | 11.44% | 11.08% | 9.85% | 8.93% | 7.89% | 6.73% | 7.98% | 7.7% | 9.72% | 8.09% | 7.96% | 8.74% | 8.54% | 10.7% | 10.33% | 11.47% | - |
| Other Operating Expenses | 2M | 25M | -30M | 472M | 11M | 20M | 96M | 1M | 142M | 282M | 298M | -459M | 122M | 84M | 60M | 2M | 150M | 2.56B | 142M | 78M | 7M | 0 | 59M | 9M | 19M | 6.66B |
| Operating Income | 3.12B | 1.89B | 452M | -342M | 1.96B | 1.49B | 1.3B | 1.49B | 1.63B | 1.05B | 445M | 2.06B | 1.78B | 2.09B | 3.11B | 806M | 1.74B | -2.67B | 1.38B | 614M | 874M | 722M | 444M | 691M | 374M | -697M |
| Operating Margin % | 28.33% | 20.78% | 6.9% | -4.63% | 16.77% | 13.97% | 12.37% | 14.31% | 14.61% | 9.79% | 3.99% | 14.98% | 12.94% | 14.57% | 20.8% | 7.35% | 15.27% | -27.18% | 10.83% | 5.4% | 9.49% | 9.56% | 7.13% | 10.65% | 6.14% | -11.68% |
| Operating Income Growth % | - | 318.14% | 232.16% | -117.49% | 31.03% | 14.77% | -12.58% | -9% | 55.03% | 136.85% | -78.38% | 15.88% | -15.06% | -32.72% | 285.61% | -53.68% | 165.29% | -293.68% | 124.1% | -29.75% | 21.05% | 62.61% | -35.75% | 84.76% | 153.66% | - |
| EBITDA | 3.39B | 2.14B | 716M | 171M | 2.41B | 1.89B | 1.68B | 2.03B | 2.23B | 1.8B | 1.26B | 2.9B | 2.65B | 2.96B | 3.92B | 1.56B | 2.52B | -1.73B | 2.22B | 1.47B | 1.49B | 1.19B | 858M | 1.13B | 779M | 5.97B |
| EBITDA Margin % | 30.81% | 23.54% | 10.93% | 2.32% | 20.63% | 17.69% | 15.98% | 19.52% | 19.96% | 16.74% | 11.29% | 21.1% | 19.35% | 20.65% | 26.25% | 14.22% | 22.12% | -17.68% | 17.47% | 12.9% | 16.14% | 15.7% | 13.79% | 17.48% | 12.8% | 100% |
| EBITDA Growth % | 79.57% | 199.02% | 318.71% | -92.89% | 27.37% | 12.51% | -17.21% | -9.14% | 23.79% | 43.1% | -56.54% | 9.19% | -10.43% | -24.43% | 151.41% | -38.1% | 245.33% | -178.11% | 51.54% | -1.41% | 25.3% | 38.23% | -24.34% | 45.57% | -86.94% | - |
| D&A (Non-Cash Add-back) | 201M | 251M | 264M | 513M | 451M | 397M | 379M | 541M | 598M | 749M | 815M | 841M | 879M | 873M | 814M | 754M | 780M | 931M | 844M | 851M | 612M | 464M | 414M | 443M | 405M | 6.66B |
| EBIT | 3.11B | 1.83B | 777M | -183M | 1.93B | 1.57B | 1.23B | 1.6B | 1.65B | 1.04B | 673M | 1.47B | 1.79B | 2.04B | 3.12B | 793M | 1.74B | -2.67B | 1.46B | 643M | 878M | 722M | 503M | 700M | 378M | 5.97B |
| Net Interest Income | -269M | -296M | -317M | -303M | -247M | -218M | -181M | -140M | -198M | -210M | -190M | -201M | -187M | -206M | -233M | -207M | -168M | -126M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 26M | 25M | 15M | 10M | 2M | 2M | 20M | 84M | 38M | 12M | 3M | 6M | 8M | 8M | 8M | 7M | 6M | 17M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 295M | 321M | 332M | 313M | 249M | 220M | 201M | 224M | 236M | 222M | 193M | 207M | 195M | 214M | 241M | 214M | 174M | 134M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -442M | -377M | -7M | -154M | -276M | -144M | -268M | -115M | -216M | -239M | -171M | -88M | -220M | -260M | -226M | -227M | -171M | -149M | -47M | -53M | 50M | 10M | -16M | -31M | -135M | 697M |
| Pretax Income | 2.68B | 1.51B | 445M | -496M | 1.68B | 1.35B | 1.03B | 1.37B | 1.42B | 815M | 274M | 1.97B | 1.56B | 1.83B | 2.88B | 579M | 1.57B | -2.81B | 1.33B | 561M | 924M | 732M | 428M | 660M | 239M | 0 |
| Pretax Margin % | 24.31% | 16.63% | 6.79% | -6.72% | 14.4% | 12.62% | 9.82% | 13.21% | 12.68% | 7.57% | 2.46% | 14.34% | 11.34% | 12.76% | 19.29% | 5.28% | 13.77% | -28.7% | 10.46% | 4.94% | 10.04% | 9.69% | 6.88% | 10.18% | 3.93% | - |
| Income Tax | 299M | 44M | 110M | 33M | 30M | 34M | 28M | -640M | 236M | 43M | 26M | 228M | -14M | -7M | 20M | 68M | -40M | 311M | 67M | -352M | 84M | 25M | -101M | 19M | 86M | -175M |
| Effective Tax Rate % | 11.17% | 2.91% | 24.72% | -6.65% | 1.79% | 2.52% | 2.71% | -46.65% | 16.64% | 5.28% | 9.49% | 11.57% | -0.9% | -0.38% | 0.69% | 11.74% | -2.55% | -11.05% | 5.04% | -62.75% | 9.09% | 3.42% | -23.6% | 2.88% | 35.98% | - |
| 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 |
| Net Margin % | 21.6% | 16.15% | 5.11% | -7.16% | 14.14% | 12.3% | 9.55% | 19.36% | 10.57% | 7.17% | 2.22% | 12.68% | 11.44% | 12.81% | 19.16% | 4.66% | 14.12% | -31.47% | 9.93% | 8.04% | 9.12% | 9.36% | 8.5% | 9.88% | 2.51% | -8.75% |
| Net Income Growth % | 59.17% | 338.51% | 163.33% | -132.08% | 25.49% | 30.88% | -50.1% | 70.22% | 53.11% | 211.29% | -85.76% | 10.96% | -14.58% | -35.78% | 460.08% | -68.24% | 152.14% | -344.53% | 38.23% | 8.69% | 18.81% | 33.65% | -17.47% | 318.95% | 129.31% | - |
| Net Income (Continuing) | 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 | -3.13B | 1.26B | 913M | 840M | 707M | 529M | 641M | 153M | -522M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 11M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 10.38 | 6.77 | 1.58 | -2.56 | 7.36 | 5.36 | 3.79 | 7.06 | 4.05 | 2.58 | 0.82 | 5.26 | 4.52 | 4.81 | 6.49 | 1.09 | 3.14 | -6.32 | 2.36 | 1.56 | 1.60 | 1.41 | 1.06 | 1.36 | 0.36 | -1.14 |
| EPS Growth % | 52.31% | 328.48% | 161.72% | -134.78% | 37.31% | 41.42% | -46.32% | 74.32% | 56.98% | 214.63% | -84.41% | 16.37% | -6.03% | -25.89% | 495.41% | -65.29% | 149.68% | -367.8% | 51.28% | -2.5% | 13.48% | 33.02% | -22.06% | 277.78% | 131.58% | - |
| EPS (Basic) | - | 6.93 | 1.60 | -2.56 | 7.50 | 5.43 | 3.83 | 7.13 | 4.10 | 2.61 | 0.83 | 5.38 | 4.66 | 4.97 | 6.72 | 1.13 | 3.28 | -6.32 | 2.46 | 1.64 | 1.70 | 1.51 | 1.17 | 1.53 | 0.38 | -1.30 |
| Diluted Shares Outstanding | 229M | 217M | 212M | 207M | 224M | 245M | 265M | 285M | 292M | 299M | 302M | 331M | 347M | 382M | 441M | 467M | 514M | 488M | 538M | 587M | 524M | 502M | 498M | 470M | 428M | 456M |
| Basic Shares Outstanding | 221M | 212M | 209M | 207M | 220M | 242M | 262M | 282M | 288M | 296M | 299M | 324M | 337M | 370M | 426M | 451M | 491M | 488M | 512M | 558M | 495M | 468M | 452M | 418M | 401M | 402M |
| Dividend Payout Ratio | - | 40.84% | 174.63% | - | 36.99% | 49.39% | 67.03% | 35.44% | 61.42% | 72.67% | 293.15% | 38.12% | 35.48% | 28.18% | 13% | 14.48% | - | - | 17.12% | 23.22% | 18.45% | 17.26% | 17.01% | 44.93% | - | - |
Cyclical hyperscale demand volatility
According to the most recent quarterly filings, Seagate's revenue growth has accelerated to 44.1% year-over-year, signaling a robust recovery in the cloud spending cycle that appears to be outpacing the more modest growth trajectories observed in broader enterprise storage hardware markets during the same period.
The sharp uptick in revenue suggests that the company is successfully capturing demand from hyperscale data center operators as they resume capital expenditure programs. This trajectory implies that the business is highly sensitive to the procurement cycles of a few major cloud service providers, which may lead to lumpy revenue recognition patterns.
As reported in financial statements, Seagate's gross margin has expanded significantly to 46.5% in 2026Q3, reflecting improved manufacturing utilization and a favorable product mix shift toward high-capacity mass storage drives that command superior pricing power compared to legacy client-side hardware offerings.
The expansion in gross margin suggests that the company is effectively managing its high fixed-cost manufacturing base by scaling production of high-density units. Investors should monitor whether this margin profile is sustainable or if it remains vulnerable to the cyclical inventory corrections typical of the storage industry.
Based on Seagate's reported figures, operating income has scaled to $998 million, demonstrating significant operating leverage as the company maintains relatively flat SG&A expenses while revenue growth accelerates, suggesting a disciplined approach to managing overhead costs during periods of rapid top-line expansion.
The ability to grow operating income faster than revenue indicates that the company is successfully leveraging its existing infrastructure. This trend appears to be a direct result of the company's focus on high-capacity nearline drives, which require less incremental selling effort than legacy consumer products.
Data from recent income statements indicates that Seagate has maintained tight control over operating expenses, with SG&A costs remaining largely stable at $143 million despite a substantial increase in quarterly revenue, which suggests a high degree of operational discipline in the face of cyclical demand spikes.
The stability of SG&A expenses relative to the revenue surge implies that the company is not over-investing in administrative overhead to support its current growth phase. This cost discipline appears to be a key driver of the company's improved profitability, though it warrants monitoring for potential under-investment in long-term R&D.
While current performance appears strong, historical data suggests that Seagate's reliance on hyperscale procurement cycles creates significant downside risk, as evidenced by the sharp margin contraction and negative net income observed in 2024Q2 when the company faced a sudden downturn in cloud-related demand.
The volatility in net income during previous quarters highlights the inherent risk of a business model tied to the capital expenditure cycles of a few large customers. Investors should consider that the current profitability levels may be peaking, and any deceleration in cloud spending could lead to rapid inventory accumulation.
Quick answers to the most common questions about buying STX stock.
For fiscal year 2025, Seagate Technology Holdings plc (STX) reported total revenue of $9.10B. This represents a 52.5% increase compared to $5.97B in 2001.
Seagate Technology Holdings plc (STX) is profitable, generating $1.47B in net income for the fiscal year ending 2025 with a net profit margin of 16.1%.
Seagate Technology Holdings plc (STX) reported an operating income of $1.89B, resulting in an operating profit margin of 20.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Seagate Technology Holdings plc (STX) generated $3.20B in gross profit for the year, representing a gross profit margin of 35.2%. This demonstrates the company's core pricing power and production efficiency.