Seagate increases quarterly net profit by 205% to $1.78 billion

The reporting quarter on Seagate's calendar ended on October 2. The data center segment accounted for the bulk of revenue, 81%, or $3.4 billion, growing by 63%; over the year, this segment's share gained one percentage point. In terms of capacity, shipments for data centers increased by 24% to 198 exabytes, representing 90% of all company shipments by volume. As noted in Seagate's report materials, future data center shipment volumes are already allocated through the end of calendar year 2028, with some cloud contracts running through the end of 2030.

Earnings per share nearly tripled to $7.68. The non-GAAP profit margin rose over the year from 40.1% to 57.8%, and operating margin increased from 29% to 50.7%, while operating expenses rose by 3% to $300 million. The edge computing and internet of things segment brought in the remaining 19% of revenue — $784 million, which is 52% higher than a year ago.

For the current quarter, Seagate guides revenue in the range of $4.7–4.9 billion and earnings per share from $9 to $9.4. Over the past quarter, the company returned $568 million to shareholders via dividends and share buybacks. In addition, Seagate reported that in the laboratory it achieved a recording density of 8 TB per single magnetic platter, and Mozaic 4 generation drives are already being purchased by two leading cloud providers.