Seagate delivered a significant beat on both the top and bottom lines for the first quarter of fiscal 2027, driven by a strengthening demand environment for mass-capacity storage. The company reported record profitability and its highest-ever quarterly free cash flow, supported by the ongoing transition to its high-density HAMR technology roadmap and a value-based pricing strategy.
Key Highlights
- Revenue reached $4.23 billion, surpassing the analyst estimate of $4.14 billion and representing 61% year-over-year growth.
- Non-GAAP gross margin expanded to 57.8%, a substantial increase from 40.1% in the prior-year period, resulting in a non-GAAP EPS of $7.68 which beat estimates by $0.51.
- Free cash flow hit a record $1.5 billion, allowing the company to retire $1.2 billion in debt during the quarter and an additional $750 million subsequent to the quarter's end.