Seagate Technology Holdings plc (STX) Q3 2026 Financial Results Summary

Seagate Technology Holdings plc (NASDAQ: STX) released its fiscal third quarter 2026 financial results on April 29, 2026. Here’s a summary of the key highlights from the report.

Fiscal Q3 2026 Highlights

• Revenue: Seagate reported revenue of $3.11 billion, a 44% increase from $2.16 billion in Q3 2025.
• Gross Margin:
  • GAAP Gross Margin: 46.5%, up from 35.2% in the same quarter last year, reflecting an increase of 11.3 percentage points.
  • Non-GAAP Gross Margin: 47.0%, improved from 36.2%, an increase of 10.8 percentage points year-over-year.
• Earnings Per Share (EPS):
  • GAAP Diluted EPS: $3.27, significantly higher than $1.57 in Q3 2025, marking a 108% increase.
  • Non-GAAP Diluted EPS: $4.10, compared to $1.90, which translates to a 116% increase year over year.
• Cash Flow:
  • Cash Flow from Operations: $1.1 billion.
  • Free Cash Flow: $953 million.
• Debt Management: During the quarter, Seagate retired $641 million in debt.
• Shareholder Returns: The company returned $191 million to shareholders via dividends and share repurchases.

Quarterly Cash Dividend

• Seagate's Board of Directors declared a quarterly cash dividend of $0.74 per share. This dividend will be payable on July 7, 2026, to shareholders recorded as of the close of business on June 24, 2026. The amount of the dividend increased from $0.72 declared in Q3 2025, representing a 2.8% growth.

Operational Insights

• Operating Margin:
  • GAAP Operating Margin: 32.1%, up from 20.0% in Q3 2025, an increase of 12.1 percentage points.
  • Non-GAAP Operating Margin: 37.5%, up from 23.5%, reflecting an increase of 14 percentage points year over year.
• Net Income:
  • GAAP Net Income: $748 million, compared to $340 million in Q3 2025, representing an 119% increase.
  • Non-GAAP Net Income: $934 million, up from $407 million last year, which is an 129% increase.

Financial Health

• At the end of the fiscal third quarter, Seagate had $1.1 billion in cash and cash equivalents and 224 million ordinary shares outstanding.

Business Outlook

• Seagate provided guidance for the fiscal fourth quarter 2026, expecting:
  • Revenue to be around $3.45 billion, plus or minus $100 million.
  • Non-GAAP diluted EPS is anticipated between $5.00 and $5.20.

Summary of Key Financial Metrics

• Revenue:
  • Q3 2026: $3.11 billion (up 44%)
  • Q3 2025: $2.16 billion
• GAAP Gross Margin:
  • Q3 2026: 46.5% (up 11.3 percentage points)
  • Q3 2025: 35.2%
• Non-GAAP Gross Margin:
  • Q3 2026: 47.0% (up 10.8 percentage points)
  • Q3 2025: 36.2%
• GAAP Diluted EPS:
  • Q3 2026: $3.27 (up 108%)
  • Q3 2025: $1.57
• Non-GAAP Diluted EPS:
  • Q3 2026: $4.10 (up 116%)
  • Q3 2025: $1.90

Conclusion

Seagate Technology Holdings plc experienced robust growth in its third quarter of fiscal 2026, driven by increased demand for data storage solutions. The significant rise in revenues, margins, and earnings reflects the company's successful execution of its business strategy. The declared dividend also underscores Seagate’s commitment to returning value to its shareholders. The outlook remains positive as they prepare for continued expansion into next quarter.

Note: All amounts are in millions.

SEAGATE TECHNOLOGY HOLDINGS PLC	CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS	(In millions, except per share data)
For the Three Months Ended	April 3, 2026	March 28, 2025
For the Nine Months Ended	April 3, 2026	March 28, 2025
Revenue	$3,112	$2,160
Cost of revenue	$1,665	$1,400
Product development	$194	$180
Marketing and administration	$143	$139
Legal settlement	$105	$—
Restructuring and other, net	$7	$10
Total operating expenses	$2,114	$1,729
Income from operations	$998	$431
Interest income	$6	$4
Interest expense	$-68	$-77
Net loss from debt transactions	$-69	$-4
Other, net	$-3	$1
Other expense, net	$-134	$-76
Income before income taxes	$864	$355
Provision for income taxes	$116	$15
Net income	$748	$340
Net income per share:
Basic	$3.38	$1.60
Diluted	$3.27	$1.57
Number of shares used in per share calculation
Basic	221	212
Diluted	229	216
Cash dividends declared per ordinary share	$0.74	$0.72

Note: All amounts are in millions.

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SEAGATE TECHNOLOGY HOLDINGS PLC	CONDENSED CONSOLIDATED BALANCE SHEETS	(In millions)
	April 3, 2026	June 27, 2025
-unaudited
ASSETS
Current assets:
Cash and cash equivalents	$1,146	$891
Accounts receivable, net	$1,197	$959
Inventories, net	$1,530	$1,440
Other current assets	$426	$363
Total current assets	$4,299	$3,653
Property, equipment and leasehold improvements, net