Research · Sep 3, 2026
Western Digital FY25 (Jun 27, 2025 FYE) at $9.52B revenue (+51% from $6.32B FY24). Net income $1.86B (vs -$798M FY24, -$1.68B FY23). Diluted EPS $5.12. Pure-play HDD post-SanDisk spinoff (early 2025). Q2 FY26 revenue $3.0B (+25% YoY); Cloud $2.7B (89%, +28%); Client $176M (+26%); Consumer $168M (-3%). Q2 GM 46.1% (+770bp YoY); op margin 33.8%; FCF $653M. HAMR qualification with hyperscalers H1 2026. 32TB UltraSMR ePMR drives 3.5M+ units shipped through Q2 FY26. Q1 FY26: 25% dividend raise + $2B buyback program. Top 7 customers POs through 2026 (5 covering all of 2026, 1 through 2027). 12 analysts: 10 Buy / 2 Hold; consensus $354.09, range $250-$420. Cantor $325→$420 (Street-high); Citi $280→$405 (+$125); Barclays $240→$405 (+$165).
Research · Sep 3, 2026
Seagate FY25 (Jun 27, 2025 FYE) at $9.10B revenue (+39% from $6.55B FY24 trough). Net income $1.47B (+339% YoY; vs $529M loss FY23). Diluted EPS $6.77 (+328%). Mozaic 3+ HAMR HDDs (30+ TB) volume ramp for hyperscaler datacenter demand. OCF $1.08B; capex $265M; FCF $818M (+23%). Capital return $654M (div $600M + tax-withholding $54M); zero open-market buybacks. May 2025 Board action: $5.0B buyback authorization unused. 9 analyst actions Feb-Apr 2026: all PT raises. Barclays upgrade EW→OW at $625 (+$200, the largest single raise). PT range moved $440-$525 (Feb) to $475-$650 (April).
Research · Apr 30, 2026
Seagate's FQ3 2026 earnings beat on revenue and EPS, but the real story is a 1,130 basis point gross margin expansion driven by a structural shift toward higher-capacity nearline drives using HAMR/Mozaic technology. The tape is reading this as cyclical strength; the filing reveals a durable product mix transition that should sustain elevated margins as cloud providers deploy AI infrastructure.
