Key Takeaways
- Seagate beat its fiscal‑third‑quarter revenue and EPS guidance, delivering record‑high margins and close to $1 billion in free cash flow.
- The company generated $1.1 billion of cash from operations and $953 million of free cash flow, using part of that cash to retire $641 million of debt and return $191 million to shareholders via dividends and share repurchases.
- A quarterly cash dividend of $0.74 per share was declared, payable July 7 2026 to shareholders of record June 24 2026.
- Guidance for the fiscal fourth quarter of 2026 calls for revenue of $3.45 billion (± $100 million) and non‑GAAP diluted EPS of $5.00 (± $0.20), reflecting modest dilution from exchangeable senior notes and limited impact from tariffs or Middle‑East tensions.
- Seagate continues to emphasize its areal‑density‑driven product strategy to capture AI‑fueled data‑growth opportunities while maintaining disciplined capital allocation.
- The release includes standard forward‑looking‑statement cautions and a detailed explanation of the non‑GAAP measures the company uses to evaluate performance.
Financial Performance Highlights
Seagate Technology Holdings plc reported strong fiscal‑third‑quarter results for the period ended April 3 2026, surpassing the high end of its previously issued revenue and earnings‑per‑share guidance. The company noted record margin performance and generated nearly $1 billion in free cash flow, underscoring the effectiveness of its operational execution and cost discipline. Although the press release does not disclose the exact quarterly revenue figure, the emphasis on beating guidance and achieving robust profitability signals a favorable demand environment for Seagate’s storage solutions.
Cash Flow, Balance Sheet, and Shareholder Returns
During the quarter, Seagate produced $1.1 billion of cash from operating activities and $953 million of free cash flow. The strong cash conversion enabled the company to retire approximately $641 million of debt, strengthening its balance sheet. Simultaneously, Seagate returned $191 million to shareholders through a combination of dividends and share repurchases. At quarter‑end, cash and cash equivalents totaled $1.1 billion, and there were 224 million ordinary shares issued and outstanding, providing a solid liquidity platform for continued investment and return of capital.
Dividend Declaration
The Board of Directors approved a quarterly cash dividend of $0.74 per share. The dividend will be payable on July 7 2026 to shareholders whose names appear on the register as of the close of business on June 24 2026. Future dividend payments remain discretionary and will depend on Seagate’s financial position, earnings, available cash, capital requirements, and other factors deemed relevant by the Board.
Business Outlook for Fiscal Q4 FY2026
Looking ahead, Seagate provided guidance for its fiscal fourth quarter of 2026. The company expects revenue of $3.45 billion, plus or minus $100 million, and non‑GAAP diluted earnings per share of $5.00, plus or minus $0.20. The outlook incorporates the estimated net dilutive effect of the exchangeable senior notes due 2028 and anticipates only a minimal impact from global tariff policies or the ongoing Middle‑East conflict as of the release date. Notably, the non‑GAAP EPS guidance excludes known pre‑tax share‑based‑compensation expenses of $0.23 per share, while other unpredictable items—such as debt‑transaction gains or losses, strategic investment impairments, and tax adjustments—are not reconciled to GAAP because they cannot be reasonably forecasted.
Investor Communications
Seagate will host a public webcast on April 28 2026 at 2:00 PM PT / 5:00 PM ET to discuss the quarterly results and outlook. The live webcast will be accessible via the company’s Investor Relations website at investors.seagate.com, with an archived audio version posted shortly after the event concludes. This provides investors with timely access to management’s commentary and answers to questions.
About Seagate Technology
Seagate (NASDAQ: STX) is a pioneer in mass‑capacity data storage, enabling hyperscale cloud providers, enterprises, and consumers to protect, create, and manage the data that drives their digital transformation. For more than 45 years, the company has delivered breakthrough innovations that bring sustainable, high‑performance storage to the world at scale. Further information is available at www.seagate.com, and Seagate maintains an active presence on LinkedIn, YouTube, X (formerly Twitter), and Facebook.
Forward‑Looking Statements and Risks
The release contains forward‑looking statements concerning Seagate’s future financial performance, product introductions (including HAMR‑based Mozaic products), debt servicing, dividend policy, and exposure to macro‑economic factors such as tariffs and geopolitical tensions. These statements are based on current expectations and assumptions but are subject to risks and uncertainties detailed in the company’s periodic SEC filings. Actual results may differ materially, and Seagate does not undertake to update these statements except as required by law.
Use of Non‑GAAP Financial Information
Seagate supplements its GAAP reporting with a range of non‑GAAP metrics—including gross profit, operating income, net income, diluted EPS, free cash flow, EBITDA, adjusted EBITDA, and LTM adjusted EBITDA—to provide investors with a view of core operating performance. Adjustments exclude items such as acquisition‑related charges, amortization of acquired intangibles, legal settlements, gains or losses from business divestitures, debt‑transaction fees, purchase‑order cancellation fees, restructuring costs, share‑based compensation, strategic investment gains/losses/impairments, other charges (primarily IT transformation), and certain income‑tax effects. The company applies a projected non‑GAAP income‑tax rate of 15.5 % for fiscal 2026. Seagate stresses that these non‑GAAP figures are supplemental to, not replacements for, GAAP results and may differ from those used by peers.
Additional Details
The release notes that Seagate recorded $20 million of restructuring charges in the three months ended March 28 2025, split evenly between cost of revenue and operating expenses. Using the if‑converted method, approximately 4 million shares (for the three‑month period) and 7 million shares (for the nine‑month period) are issuable upon conversion of the 2028 exchangeable senior notes; these dilutive effects are partially offset by capped‑call transactions and are excluded from the non‑GAAP share count used in EPS calculations. These details reinforce the company’s disciplined approach to managing dilution while maintaining shareholder returns.