Seagate sets sights on growth with HAMR tech and $5B buyback

FREMONT, Calif. - Seagate Technology Holdings plc (NASDAQ: STX), a global leader in data storage solutions with a market capitalization of $23.2 billion, outlined ambitious financial goals and a strategic roadmap at its 2025 Investor and Analyst Event. The company’s future growth is anchored in the adoption of its pioneering Heat-Assisted Magnetic Recording (HAMR) technology, aiming to lead the industry in the face of rising data storage demands. According to InvestingPro data, Seagate’s revenue is expected to grow 38% this fiscal year, supporting its ambitious outlook.

Seagate’s CEO, Dave Mosley, highlighted the company’s progress since its last investor day in 2021, mentioning structural improvements that have enhanced supply discipline and demand visibility. Mosley expressed confidence in Seagate’s technology and strategy to navigate the data-centric landscape and deliver shareholder value.

The company has set new financial targets through the fiscal year 2028, with a revenue compound annual growth rate (CAGR) in the low-to-mid teens. Other goals include a non-GAAP gross margin of 40%, operating expenses at approximately 10% of revenue, capital expenditures between 4-6% of revenue, and capital returns exceeding 75% of free cash flow.

In a move to demonstrate its commitment to shareholder returns and confidence in its strategic direction, Seagate’s Board of Directors has approved an increase in the company’s share repurchase authorization to $5 billion. This authorization does not have an expiration date and will be executed based on various financial considerations. The company has maintained dividend payments for 15 consecutive years, currently offering a 2.76% yield, and has generated a strong return over the last month.

The company’s Mozaic product line, powered by HAMR technology, is positioned to address key data center challenges and deliver cost-effective, scalable, and sustainable storage solutions. Seagate’s differentiated product roadmap includes an evolution from Mozaic 3+TB per disk to 10TB per disk, showcasing a clear path for future development.

Seagate has a longstanding history in the data storage industry, with over four decades of experience and more than four billion terabytes of data capacity shipped. The company’s comprehensive portfolio ranges from individual storage devices to extensive systems and services.

This news article is based on a press release statement from Seagate Technology Holdings plc.

In other recent news, Seagate Technology has announced a significant $5 billion stock repurchase program, emphasizing its commitment to shareholder value and confidence in its financial health. The program is flexible, allowing for adjustments based on financial conditions and market dynamics. In addition, Citi analysts have raised Seagate’s price target to $125, maintaining a Buy rating, citing strong demand and strategic market positioning. BNP Paribas Exane also upgraded Seagate’s stock from Underperform to Neutral, increasing the price target to $100, reflecting a more stable outlook due to long-term agreements with hyperscale companies. Kerrisdale Capital has highlighted Seagate’s leadership in the hard disk drive market, particularly with its advancements in heat-assisted magnetic recording (HAMR) technology. They noted that Seagate is well-positioned in the AI and data center sectors, with significant market share among major hyperscalers like Amazon and Google. Furthermore, Rosenblatt analysts see Seagate benefiting from increased AI development, alongside other memory and storage companies, due to new U.S. technology partnerships with Saudi Arabia. These developments collectively underscore Seagate’s strategic initiatives and market opportunities in the evolving technology landscape.

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