Seagate Technology Holdings plc is a leading provider of mass-capacity data storage, accelerating the world’s ability to harness the full value of data. The company operates in the data storage industry, serving two principal end markets: Data Center, which includes cloud and enterprise environments that rely on scalable, high-capacity storage infrastructure to support AI-enabled computing, business-critical applications and other data-intensive workloads, and Edge / Internet of Things, which encompasses industrial and consumer oriented environments where data is increasingly processed and stored closer to where it is created. According to the International Data Corporation, the global datasphere is expected to grow at a compound annual growth rate of approximately 27% through 2030, reaching around 718 zettabytes annually. Hard disk drives remain a foundational technology for delivering scalable, energy-efficient, mass-capacity storage with favorable storage economics that underpins modern digital infrastructure.

The company's global competitors include HDD manufacturers such as Western Digital Corporation and Toshiba Electronics Devices & Storage Corporation along with NAND flash suppliers that provide and enable alternative storage technologies, as well as storage systems and solutions providers. Competitive differentiation is built on decades of storage innovation, vertically integrated engineering and manufacturing capabilities along with a technology roadmap designed to advance both storage capacity and system performance. The technology roadmap is centered on advancing areal density through innovations such as the Mozaic platform, which incorporates the company's unique implementation of heat-assisted magnetic recording technology, advanced magnetic recording with proprietary photonics and other innovations. As of July 3, 2026, the company held approximately 3,036 U.S. patents and 226 patents issued in various non-U.S. jurisdictions, as well as approximately 273 U.S. and 29 non-U.S. pending patent applications.

The company generates revenue through the design and manufacture of HDDs, storage systems and related solutions sold through a combination of direct and indirect sales channels. The vast majority of business is derived from the Data Center markets, where products are sold primarily to cloud service providers, original equipment manufacturers, distributors and enterprise organizations. Edge IoT products are sold primarily through OEMs, distributors, retailers and third-party resellers. The company's vertically integrated engineering and manufacturing capabilities, together with continued investment in advanced storage technologies, position it to address customers' evolving storage requirements.

The Data Center portfolio includes high-capacity HDDs of up to 44TB and storage systems of up to 3.5PB, designed to support hyperscale, CSPs, OEMs and enterprise organizations, providing scalable storage infrastructure for AI-enabled cloud computing, business-critical applications, content delivery, backup, archive and other large-scale workloads. The Edge IoT portfolio includes storage products ranging from 1TB to 32TB to enable applications where data is created, processed and stored closer to its source, serving industrial, commercial and consumer environments, supporting video and image applications, network-attached storage, smart infrastructure, personal computing, gaming, streaming, creative workflows and data backup.

The company's Consumer Solutions segment, part of the Edge IoT market, has historically experienced seasonal demand patterns, with higher sales typically occurring in the first half of the fiscal year, primarily reflecting back-to-school and year-end holiday purchasing. The company's retail channel primarily serves casual users, gamers and creative professionals through branded storage products sold directly to retailers or through distribution partners.

During fiscal year 2026, the company shipped 789 exabytes of HDD storage capacity. The company reduced its outstanding debt by $1.4 billion through exchanges of its 2028 Notes for total consideration of $1.3 billion cash and approximately 12.6 million of its ordinary shares as well as repurchases of Senior Notes. The company paid $634 million in dividends and repurchased $176 million of its ordinary shares. The Board of Directors increased the authorization for the repurchase of its outstanding shares to $5.0 billion on May 21, 2025, and as of July 3, 2026, $4.8 billion remained available for repurchase. The company also completed the acquisition of Intevac, Inc. on March 31, 2025.

For fiscal year 2026, the company generated revenue of approximately $12.2 billion with a gross margin of 46% and net income of $3.2 billion. Operating cash flow was $3.7 billion. Revenue was $12,195 million compared to $9,097 million in the prior year. Gross profit was $5,558 million compared to $3,200 million. Income from operations was $4,094 million compared to $1,890 million. Net income was $3,184 million compared to $1,469 million.

The company believes the structural changes made to the business, including executing its pricing strategy and maintaining supply discipline, together with the long-term customer engagements in place, provide greater visibility into future demand trends. The company believes its hard drive storage business will continue to benefit from growing demand for data creation, retention and utilization supported by the increasing value organizations derive from their data. Growth is expected to be led by data center end markets, where the company experienced sustained demand for its high capacity nearline drives across global cloud customers, as well as increasing sales for enterprise edge deployments. Customers continue to invest in data center infrastructure to serve both traditional data intensive workloads along with growing AI related applications, and the ongoing adoption of these applications increases the volume of data being generated, retained and reused, which the company believes supports demand growth for scalable, cost-efficient and reliable storage solutions.

The company's technology roadmap is centered on advancing areal density, which increases the amount of data that can be stored on a disk's recording surface. Through innovations such as the Mozaic platform, which incorporates the company's unique implementation of heat-assisted magnetic recording technology, advanced magnetic recording with proprietary photonics and other innovations, the company enables higher storage densities and drive capacities in a capital efficient manner. These innovations establish a foundation for continued increases in HDD capacity across future product generations. The company continues to complement its areal density-driven technology roadmap with innovations designed to address customers' evolving requirements as drive capacities scale, including multi-actuation, advanced channel coding and signal processing that improve data throughput and system performance for increasingly demanding workloads.

The company's gross margin was 46% for fiscal year 2026. The company continues to invest in manufacturing automation, AI and ML, process improvements and supply chain integration to enhance operational efficiency, increase manufacturing yields and support new product introductions. The company's manufacturing strategy combines vertically integrated design and production with a global manufacturing footprint to support the development and delivery of advanced data storage products.

The company's manufacturing operations depend on the availability of key components, raw materials and global logistics. The company continually evaluates its manufacturing network, supplier relationships and logistics strategies to improve operational resilience and support customer demand. The company designs and manufactures many of the critical technologies incorporated into its HDD products and leverages strategic suppliers and contract manufacturers for selected components and assembly operations. Certain components and raw materials are available from a limited number of suppliers, and the company may enter into long-term supply arrangements to support product availability and manufacturing continuity.

Research and development is central to the company's long-term growth strategy. The company invests in the development of new products and technologies that advance areal density, product reliability, energy efficiency, performance and storage economics. The company's level of investment varies based on technology roadmaps, product development priorities, qualification activities and the timing of new product introductions. The company paid $634 million in dividends and repurchased $176 million of its ordinary shares during fiscal year 2026. As of July 3, 2026, $4.8 billion remained available for repurchase under the existing repurchase authorization limit authorized by the Board of Directors.

The macroeconomic environment remains dynamic, marked by heightened geopolitical uncertainty and evolving trade policies, which may impact the company's business and results of operations. The company faces risks related to changes in U.S. trade policy, including the imposition of sanctions or tariffs and the resulting consequences, which may have a material and adverse impact on its business and results of operations. The company also faces risks from shortages or delays in the receipt of, or cost increases in, critical components, equipment or raw materials necessary to manufacture its products, as well as reliance on single-source suppliers.

The company is subject to risks associated with litigation, investigations and regulatory proceedings that may cause it to incur significant expense or adversely impact its results of operations and financial condition. The company's business is subject to various laws, regulations and governmental policies that may cause it to incur significant expense or adversely impact its results of operations and financial condition. Changes in tax laws, such as global tax developments applicable to multinational businesses, could have a material and adverse effect on the company's business, results of operations or financial condition.

Management's message emphasizes that during fiscal year 2026, demand for the company's data storage solutions strengthened, with growth led by data center end markets where the company experienced sustained demand for its high capacity nearline drives across global cloud customers, as well as increasing sales for enterprise edge deployments. Management states that customers continue to invest in data center infrastructure to serve both traditional data intensive workloads along with growing AI related applications, and the ongoing adoption of these applications increases the volume of data being generated, retained and reused, which the company believes supports demand growth for scalable, cost-efficient and reliable storage solutions. Management believes the structural changes that have been made to the business, including executing the company's pricing strategy and maintaining supply discipline, together with the long-term customer engagements in place, provide greater visibility into future demand trends. Management also believes the company's hard drive storage business will continue to benefit from growing demand for data creation, retention and utilization supported by the increasing value organizations derive from their data. The strategic priorities emphasized for the period ahead include continuing to execute on the pricing strategy, maintaining supply discipline, and leveraging long-term customer engagements to capture demand from data center infrastructure investments and AI-related applications.

For fiscal year 2026, total revenue was $12,195 million ¹ compared to $9,097 million ² in fiscal year 2025. Net income was $3,184 million ³ compared to $1,469 million ⁴ in the prior year. Diluted earnings per share was $14.66 ⁵ compared to $6.97 ⁶ in fiscal year 2025. Gross profit was $5,558 million ⁷ compared to $3,200 million ⁸, representing a gross margin of 46% ⁹ compared to 35% ¹⁰ in the prior year. Income from operations was $4,094 million ¹¹ compared to $1,890 million ¹². The company recorded a legal settlement charge of $105 million ¹³ in fiscal year 2026. Restructuring and other, net charges were $27 million ¹⁴ compared to $25 million ¹⁵ in the prior year. Other expense, net was $404 million ¹⁶ compared to $377 million ¹⁷. The provision for income taxes was $506 million ¹⁸ compared to $44 million ¹⁹. Operating cash flow was $3.7 billion ²⁰. The company paid $634 million ²¹ in dividends and repurchased $176 million ²² of its ordinary shares. The company reduced its outstanding debt by $1.4 billion ²³ through exchanges of its 2028 Notes for total consideration of $1.3 billion ²⁴ cash and approximately 12.6 million ²⁵ of its ordinary shares as well as repurchases of Senior Notes.

A limited number of key customers account for a significant portion of revenue, with one customer accounting for approximately 14% of consolidated revenue in fiscal year 2026, and the loss of or a significant reduction in purchases by any key customer could have a disproportionate effect on results. The company operates in highly competitive markets against HDD manufacturers such as Western Digital Corporation and Toshiba Electronics Devices & Storage Corporation, as well as NAND flash suppliers, and failure to anticipate technological changes or price competition could harm its ability to compete. The company is subject to export control laws, and on April 18, 2023, it entered into a Settlement Agreement with BIS that resolved allegations regarding sales of hard disk drives to Huawei, which includes a suspended denial order that could be reinstated if the company fails to comply with the agreement's terms, potentially prohibiting a range of export-related activities. The company's manufacturing operations depend on the availability of key components and raw materials, including certain rare earth elements sourced from China, and shortages or delays in critical components or reliance on single-source suppliers have in the past and may in the future affect production and harm operating results. The company's high level of debt, including the requirement to settle the principal portion of the 2028 Notes exchange obligation in cash, requires a substantial portion of cash flows from operations to service debt, reducing availability for other corporate requirements and increasing vulnerability to economic downturns.