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FREMONT, Calif. - Seagate Technology Holdings plc (NASDAQ:STX) reported better-than-expected fourth quarter earnings on Tuesday, but shares tumbled 8% as the data storage company’s guidance for the current quarter fell short of analyst expectations.
The mass-capacity data storage provider posted adjusted earnings per share of $2.59 for its fiscal fourth quarter ended June 27, exceeding the analyst estimate of $2.44. Revenue came in at $2.44 billion, slightly above the consensus estimate of $2.42 billion and up 30% YoY from $1.89 billion in the same quarter last year.
Despite the earnings beat, investors focused on Seagate’s first-quarter guidance. The company expects revenue of $2.5 billion, plus or minus $150 million, and adjusted earnings of $2.30 per share, plus or minus $0.20. The midpoint of this guidance is slightly below analyst expectations of $2.527 billion in revenue and $2.32 in EPS.
"Seagate’s strong FQ4 performance underscores our commitment to profitable growth, marked by a 30% year-over-year revenue increase, record gross margin, and non-GAAP EPS expanding to the top of our guidance range," said Dave Mosley, Seagate’s chief executive officer.
The company reported a non-GAAP gross margin of 37.9% for the quarter, up significantly from 30.9% in the year-ago period. Operating margin also improved to 26.2% from 17.3% in the same quarter last year.
For the full fiscal year 2025, Seagate reported revenue of $9.1 billion, up from $6.55 billion in fiscal 2024. Annual adjusted earnings per share reached $8.10, compared to $1.29 in the previous year.
The company generated $508 million in cash flow from operations and $425 million in free cash flow during the quarter. Seagate also declared a quarterly cash dividend of $0.72 per share, payable on October 9, 2025.
Seagate continues to focus on its HAMR (Heat-Assisted Magnetic Recording) technology products, which offer higher storage density. "We continue to execute our areal density-leading HAMR product qualifications and ramp plans, positioning Seagate to address customer demand growth for mass data storage across the cloud and at the edge," Mosley added.
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