Seagate Technology Reports Robust Fiscal Third Quarter 2025 Financial Results: Strategic Growth in Mass-Capacity Data Storage
FREMONT, CA – April 29, 2025 – Seagate Technology Holdings plc (NASDAQ: STX), a global leader in mass-capacity data storage innovation, has announced its fiscal third quarter 2025 financial results ending March 28, 2025. This detailed report reveals commanding growth, margin expansion, and strong operational execution that solidify Seagate’s industry leadership.
Key Highlights of Fiscal Q3 2025: - Total revenue of \(2.16 billion, marking a significant 30.5% increase from \)1.655 billion in the same period last fiscal year. - GAAP diluted earnings per share (EPS) surged to \(1.57 from \)0.12 a year earlier, with non-GAAP diluted EPS reaching \(1.90. - Robust gross margin expanded from 25.7% to 35.2%, indicating notable improvements in cost management and pricing power. - Operating margin soared to 20.0%, up sharply from 8.6% reported in Q3 2024. - Net income heightened to \)340 million compared to \(25 million in the prior-year quarter. - Operating cash flow generated \)259 million and free cash flow stood at \(216 million, reflecting solid liquidity and cash management. - The company declared a cash dividend of \)0.72 per share, an increase from \(0.70 last year, demonstrating commitment to shareholder returns. - Total debt was reduced by \)536 million, lowering outstanding debt to \(5.1 billion as of quarter end. - Cash and cash equivalents remained healthy at \)814 million, with 212 million ordinary shares issued and outstanding.
CEO Dave Mosley commented on the quarter’s performance: “Seagate delivered another solid quarter of profitable year-on-year growth and margin expansion, elevating our non-GAAP EPS to the top of our guidance range. Our performance underscores the structural enhancements we’ve made to our business model and the healthy supply and demand environment for mass capacity storage. We remain focused on executing our HAMR product ramp to support ongoing cloud customer demand. While we navigate the current dynamic macroeconomic environment, we are confident that our technology leadership, resilient financial model and solid industry fundamentals will drive profitable growth through 2025 and beyond.”
Strategic and Financial Analysis: This fiscal quarter’s revenue growth of approximately 30.5% year-over-year is a significant indicator of Seagate’s broadened market reach and increased demand for data storage solutions amid rising digital transformation globally. The gross margin improvement by nearly 10 percentage points highlights operational efficiencies and stronger pricing strategies leveraging Seagate’s advanced technology.
The operating margin improvement to 20% from 8.6% emphasizes effective cost control and scaled operations. Net income growth to \(340 million from \)25 million, a striking 1280% increase, reflects Seagate’s ability to convert revenue growth into bottom-line profitability.
The company’s cash flow positions it strongly for reinvestment and returns to shareholders, while the $536 million debt reduction enhances the balance sheet’s robustness.
Product and Market Outlook: Seagate’s continued focus on its Heat-Assisted Magnetic Recording (HAMR) technology product ramp aligns with increasing cloud infrastructure demand, a critical growth driver identified in recent earnings commentary. The company’s strategic emphasis on technical innovation bolsters its competitive edge in the mass data storage industry.
Future guidance provided by Seagate anticipates solid performance with fiscal Q4 2025 revenue expected in the range of \(2.25 billion to \)2.55 billion, and non-GAAP diluted EPS forecasted between \(2.20 and \)2.60, reflecting optimism amid minimal impact expected from global tariff policies.
Seagate continues to mitigate risks associated with macroeconomic challenges, tariffs, and supply chain dynamics while positioning for sustained profitable growth.
For detailed financial figures and reconciliations, access the original 8-K filing here: Seagate Q3 2025 Financial Results [https://sec.gov/Archives/edgar/data/1137789/000113778925000070/stxq32025pressreleasefinan.htm]
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