Core Insights - Seagate (NASDAQ: STX) is experiencing a resurgence in customer demand, with quarterly revenue increasing by 30% [1] - The company's profit margins have reached a historic high, indicating strong operational efficiency [1] - Seagate's shares are currently trading at approximately 15 times profit, which is significantly lower than their historical average [1] Financial Performance - Revenue for the quarter rose by 30% compared to previous periods [1] - Margins have achieved a historic high, reflecting improved profitability [1] - Current share trading multiples are around 15x profit, suggesting potential undervaluation [1]

[Part I](index=3&type=section&id=Part%20I) [Business](index=3&type=section&id=Item%201.%20Business) Seagate is a leading provider of data storage technology, primarily Hard Disk Drives (HDDs), serving markets driven by AI, cloud computing, and IoT - Seagate's primary business is providing data storage technology and solutions, with **Hard Disk Drives (HDDs)** as its main product, also offering Solid State Drives (SSDs), storage subsystems, and the Lyve™ edge-to-cloud platform[15](index=15&type=chunk) - The company's product portfolio is divided into **Mass Capacity Storage** (for cloud, enterprise, video, and NAS) and **Legacy Markets** (consumer, client, and mission-critical applications)[17](index=17&type=chunk)[21](index=21&type=chunk)[25](index=25&type=chunk) - Seagate utilizes a vertically integrated model, designing and manufacturing key HDD components like read/write heads and media, including advanced **Heat-Assisted Magnetic Recording (HAMR)** technology in its Mozaic™ platform[39](index=39&type=chunk)[44](index=44&type=chunk)[78](index=78&type=chunk) - The company's main customers are **OEMs** (including large hyperscale data centers and CSPs), distributors, and retailers, with longer-term demand commitments now required from key OEM customers in fiscal year 2024 to improve supply predictability[67](index=67&type=chunk)[68](index=68&type=chunk) - As of June 27, 2025, the company employed approximately **30,000 full-time employees**, with about **25,000 located in Asia**[86](index=86&type=chunk) [Risk Factors](index=15&type=section&id=Item%201A.%20Risk%20Factors) The company faces numerous risks including product innovation, intense competition, supply chain disruptions, macroeconomic volatility, significant debt, and regulatory compliance - Business risks include failure to introduce new products in a timely manner, intense price competition, and reliance on key customers like large hyperscale data center companies and CSPs[110](index=110&type=chunk)[116](index=116&type=chunk)[129](index=129&type=chunk) - Supply chain risks include shortages of critical components, reliance on single-source suppliers, and potential costs from canceling purchase commitments if demand falls, which led to factory underutilization charges in fiscal years 2024 and 2023[111](index=111&type=chunk)[133](index=133&type=chunk)[150](index=150&type=chunk) - The company is subject to export control laws and highlights the April 2023 Settlement Agreement with the U.S. Department of Commerce's Bureau of Industry and Security (BIS) regarding sales to Huawei[179](index=179&type=chunk) - Tax-related risks are significant, with potential impacts from global tax law changes, such as the OECD's Pillar Two framework, which is expected to materially increase the level of income tax starting in fiscal year 2026[189](index=189&type=chunk) - Cybersecurity is a major risk, with threats of cyber-attacks, ransomware, and other breaches that could disrupt operations and lead to significant liability, noting that threat actors are using increasingly advanced tools, including AI-augmented attacks[200](index=200&type=chunk)[202](index=202&type=chunk) [Unresolved Staff Comments](index=35&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments from the SEC - There are no unresolved staff comments[214](index=214&type=chunk) [Cybersecurity](index=35&type=section&id=Item%201C.%20Cybersecurity) Seagate has implemented a cybersecurity risk management program with Board oversight, employee training, and incident response exercises - The Board of Directors has delegated oversight of cybersecurity risk to the Audit and Finance Committee, which receives regular reports (at least quarterly) from the Chief Information Security Officer (CISO) and Chief Information Officer (CIO)[221](index=221&type=chunk)[222](index=222&type=chunk) - The company's cybersecurity program includes mandatory annual awareness training for all employees, enterprise tabletop exercises, and periodic assessments by independent security firms[216](index=216&type=chunk)[217](index=217&type=chunk) - As of the report date, Seagate has not identified any cybersecurity threats that have materially affected or are reasonably likely to materially affect its business, operations, or financial condition[220](index=220&type=chunk) [Properties](index=37&type=section&id=Item%202.%20Properties) Seagate's principal executive offices are in Singapore, with approximately 9.7 million square feet of owned or leased space globally for manufacturing and product development Principal Facilities | Location | Primary Use | | :--- | :--- | | **Northern Ireland** | Manufacture of recording heads | | **California** | Product development, marketing, admin | | **Colorado** | Product development, admin | | **Minnesota** | Manufacture of recording heads, product development | | **Wuxi, China** | Manufacture of drives and subassemblies | | **Johor, Malaysia** | Manufacture of substrates | | **Singapore** | Manufacture of media, product development, admin | | **Korat & Teparuk, Thailand** | Manufacture of drives and subassemblies | - As of June 27, 2025, the company owned or leased a total of approximately **9.7 million square feet** of space globally[228](index=228&type=chunk) [Legal Proceedings](index=37&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various legal proceedings, notably a $300 million settlement with BIS related to Huawei sales - The company is defending against multiple patent infringement and securities class action lawsuits[460](index=460&type=chunk)[462](index=462&type=chunk)[463](index=463&type=chunk) - On April 18, 2023, Seagate entered into a Settlement Agreement with BIS to resolve allegations regarding HDD sales to Huawei, agreeing to pay a **$300 million penalty** in quarterly installments of **$15 million** over five years[464](index=464&type=chunk) [Mine Safety Disclosures](index=37&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[229](index=229&type=chunk) [Part II](index=38&type=section&id=Part%20II) [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=38&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Seagate's ordinary shares trade on NASDAQ, with a share repurchase program paused through fiscal year 2025 but expected to resume in Q1 FY2026 - The company's ordinary shares are traded on the NASDAQ Global Select Market under the symbol **"STX"**[232](index=232&type=chunk) - The Board of Directors increased the share repurchase authorization to **$5 billion** on May 21, 2025, with **$5.0 billion** remaining available for repurchase as of June 27, 2025[240](index=240&type=chunk) - The share repurchase program was paused in the December 2022 quarter and remained paused through the end of fiscal year 2025, with an expectation to resume in **Q1 FY2026**[213](index=213&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In fiscal year 2025, Seagate's revenue increased 39% to $9.1 billion, driven by strong demand for high-capacity drives and improved gross margin Financial Performance Summary | Fiscal Year | Revenue | Gross Margin | Net Income | Operating Cash Flow | | :--- | :--- | :--- | :--- | :--- | | **2025** | $9.1 billion | 35% | $1.5 billion | $1.1 billion | | **2024** | $6.6 billion | 23% | $0.3 billion | $0.9 billion | - Revenue growth in FY2025 was primarily due to a significant increase in demand for **high-capacity nearline drives** from cloud customers and favorable pricing actions[245](index=245&type=chunk)[250](index=250&type=chunk) - Gross margin improvement was driven by favorable product mix, pricing, and the non-recurrence of **$160 million** in factory underutilization charges and a **$96 million** decrease in supply-related purchase order cancellation fees that impacted FY2024[251](index=251&type=chunk) - As of June 27, 2025, the company had unconditional purchase obligations of approximately **$1.3 billion**, primarily for inventory components, with **$1.2 billion** expected to be paid within one year[279](index=279&type=chunk) - Critical accounting policies involve significant estimates for Revenue (sales program accruals) and Income Taxes (deferred tax asset valuation allowances)[289](index=289&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=48&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Seagate manages market risks from interest rates, foreign currency exchange rates, and equity markets through hedging strategies - The company's primary market risks are related to interest rates on its investment portfolio and debt, foreign currency exchange rates, and equity market fluctuations[296](index=296&type=chunk) - As of June 27, 2025, the company had foreign currency forward exchange contracts with a total notional value of **$280 million** to hedge against balance sheet exposures in currencies like the British Pound, Chinese Renminbi, Singapore Dollar, and Thai Baht[300](index=300&type=chunk)[302](index=302&type=chunk) - The company uses a **Total Return Swap (TRS)** to manage equity market risks associated with its non-qualified deferred compensation plan liabilities[304](index=304&type=chunk) [Financial Statements and Supplementary Data](index=50&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) The consolidated financial statements for FY2025 show total assets of $8.0 billion, total liabilities of $8.5 billion, and net income of $1.5 billion Consolidated Balance Sheet (in millions) | | June 27, 2025 | June 28, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $3,653 | $3,332 | | **Total Assets** | $8,023 | $7,739 | | **Total Current Liabilities** | $2,648 | $3,099 | | **Total Liabilities** | $8,476 | $9,230 | | **Total Shareholders' Deficit** | ($453) | ($1,491) | Consolidated Statement of Operations (in millions) | | FY 2025 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | | **Revenue** | $9,097 | $6,551 | $7,384 | | **Income (loss) from operations** | $1,890 | $452 | ($342) | | **Net income (loss)** | $1,469 | $335 | ($529) | | **Diluted EPS** | $6.77 | $1.58 | ($2.56) | - In FY2024, the company sold its System-on-Chip (SoC) operations to a subsidiary of Broadcom Inc. for **$600 million**, resulting in a pre-tax net gain of **$313 million**[480](index=480&type=chunk)[482](index=482&type=chunk) - As of June 27, 2025, total debt was approximately **$5.0 billion**, with the company repaying its 2025 and 2027 notes and issuing new 2030 notes during the year[379](index=379&type=chunk)[393](index=393&type=chunk)[394](index=394&type=chunk) - The independent auditor's report from Ernst & Young LLP identified two Critical Audit Matters: (1) Revenue recognition related to sales incentive program rebates and discounts, and (2) the realizability of deferred income taxes[488](index=488&type=chunk)[489](index=489&type=chunk)[493](index=493&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=87&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) This item is not applicable to the company - Not applicable[505](index=505&type=chunk) [Controls and Procedures](index=87&type=section&id=Item%209A.%20Controls%20and%20Procedures) The company's disclosure controls and internal control over financial reporting were deemed effective as of June 27, 2025 - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 27, 2025[506](index=506&type=chunk) - Management concluded that internal control over financial reporting was effective as of June 27, 2025, based on the COSO framework, with this assessment audited and affirmed by Ernst & Young LLP[508](index=508&type=chunk) [Other Information](index=88&type=section&id=Item%209B.%20Other%20Information) An executive officer adopted a Rule 10b5-1 trading plan during the fiscal quarter - Dr. John C. Morris, SVP and CTO, adopted a Rule 10b5-1 trading plan on June 1, 2025, to sell an aggregate of **18,581 ordinary shares**[513](index=513&type=chunk) [Part III](index=89&type=section&id=Part%20III) [Directors, Executive Officers and Corporate Governance](index=89&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the forthcoming proxy statement - Detailed information for this item is incorporated by reference from the company's forthcoming Proxy Statement[517](index=517&type=chunk) - The company has a Code of Ethics for senior financial officers available on its website and will post any amendments or waivers there[518](index=518&type=chunk) [Executive Compensation](index=89&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's definitive proxy statement - Detailed information for this item is incorporated by reference from the company's forthcoming Proxy Statement[519](index=519&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=89&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership and equity compensation plans is incorporated by reference from the company's definitive proxy statement - Detailed information for this item is incorporated by reference from the company's forthcoming Proxy Statement[520](index=520&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=89&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding related party transactions and director independence is incorporated by reference from the company's definitive proxy statement - Detailed information for this item is incorporated by reference from the company's forthcoming Proxy Statement[521](index=521&type=chunk) [Principal Accountant Fees and Services](index=89&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding fees paid to the principal accountant, Ernst & Young LLP, is incorporated by reference from the company's definitive proxy statement - Detailed information for this item is incorporated by reference from the company's forthcoming Proxy Statement[522](index=522&type=chunk) [Part IV](index=90&type=section&id=Part%20IV) [Exhibits and Financial Statement Schedules](index=90&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements, schedules, and exhibits filed as part of the Form 10-K, including governance documents and debt indentures - This section contains the list of all financial statements and exhibits filed with the Form 10-K[524](index=524&type=chunk)[525](index=525&type=chunk) - Key exhibits include the company's Constitution, various debt indentures for its senior notes, the Credit Agreement, equity incentive plans, and CEO/CFO certifications[528](index=528&type=chunk)[529](index=529&type=chunk)[530](index=530&type=chunk)

Higher mass capacity revenues were driven by stronger nearline cloud demand. Mass capacity revenues surged 40% year over year to $2 billion. In the June quarter, nearline drives accounted for 91% of the total mass capacity exabytes shipped. Nearline shipments to cloud and edge data centers comprised most of the mass capacity volume. In addition to strong demand from cloud providers, nearline sales to enterprise and OEM customers saw slight quarter-over- quarter growth, and demand is expected to remain stead ...

每经AI快讯，7月30日，数据储存提供商希捷科技(STX)股价在盘前交易中下跌约7%，此前该公司发布 的一季度收入及盈利低于预期。 ...

数据储存提供商希捷科技(STX)股价在盘前交易中下跌约7%，此前该公司季度收入及盈利低于预期。 ...

智通财经7月30日电，数据储存提供商希捷科技（STX）股价在盘前交易中下跌约7%，此前该公司发布 的一季度收入及盈利低于预期。 ...

Core Insights - Seagate reported a revenue of $9.097 billion for the fiscal year ending June 27, 2025, representing a year-over-year growth of 38.86% compared to $6.551 billion in 2024 [1] - The GAAP gross margin and operating margin for the fiscal year reached 35.2% and 20.8%, respectively, reflecting an increase of 11.8 and 13.9 percentage points [1] - In the fourth fiscal quarter of 2025, Seagate's revenue was $2.444 billion, a year-over-year increase of 29.52% [1] Financial Performance - Seagate's total revenue for the fiscal year was $9.097 billion, up from $6.551 billion in the previous year, marking a significant growth [1] - The fourth fiscal quarter revenue was $2.444 billion, showing strong performance compared to the same quarter last year [1] - The company achieved record gross margins and non-GAAP earnings per share at the upper end of guidance [5] Product and Technology Development - In the fourth fiscal quarter, Seagate shipped a total hard drive capacity of 162EB, with a quarter-over-quarter growth of 13% [3] - The average capacity per drive reached 13TB, reflecting a 3% increase from the previous quarter [3] - Seagate is advancing its next-generation HAMR technology platform, Mozaic 4+, which aims for a single drive capacity of 44TB, with initial production planned for the second half of 2026 [3] Market Demand and Strategy - The strong performance in the fourth quarter highlights Seagate's commitment to profit growth, driven by structural improvements and sustained demand for high-capacity drives from cloud customers [5] - The company is focused on meeting the growing data storage needs in cloud and edge computing scenarios through its high-density HAMR technology [5] - Seagate expresses confidence in its ability to create long-term value for customers and shareholders [5]

Financial Data and Key Metrics Changes - Sales revenue for the quarter was $18.3 million, with production maintained at 25 terajoules per day, totaling 2.3 petajoules [9][11] - Realized prices for gas and condensate decreased due to US-denominated contracts and foreign exchange impacts [9] - Available liquidity includes cash of $51.6 million and undrawn debt of $76 million [11] Business Line Data and Key Metrics Changes - Development expenditure for the South Eregala peaking power plant was $21 million, with a compression project costing $1.7 million expected to be online in January [10][11] - The integrated power solution at South Eregala is progressing well, with a target to go live by October 1, 2026 [6][30] Market Data and Key Metrics Changes - The company is positioned to address a looming gas gap in the Western Australia energy market, with opportunities for gas-fired power generation [20] - The government has endorsed the need for additional gas supply, indicating a favorable environment for the company's operations [19][20] Company Strategy and Development Direction - The strategic placement of $88 million by Carnarvon aims to support the development of key projects, including West Eregala and South Eregala [8][15] - The company plans to become the first fully integrated gas-to-power provider in Australia, unlocking higher margin opportunities [21] - Focus areas include finalizing the West Eregala project, expanding South Eregala, and commencing exploration at Ocean Hill [16][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting the October 1, 2026 deadline for capacity credits, with ongoing discussions with Western Power to finalize costs [30][32] - The company is committed to ensuring that development projects are fully funded before proceeding with exploration activities [33][66] Other Important Information - The company has received $51.6 million from the first tranche of funding, which is crucial for ongoing projects [11][62] - The strategic review highlighted the need for additional funding to support the company's growth and operational plans [60][62] Q&A Session Summary Question: What are the cost increases behind the Western Power costs? - There has been a 10% increase in directly controllable costs, with ongoing discussions with Western Power to clarify total integration costs [24][25] Question: Are there any delays to the project? - The first engines are scheduled to arrive in September, and the company remains confident in meeting the October 1, 2026 deadline [30] Question: What options are available to defer payment for the Western Power portion? - Discussions with Western Power are ongoing regarding potential joint funding and tariff recovery options [31][32] Question: Why is the drilling for Ocean Hill two only planned for the latter part of next year? - The company aims to ensure revenue from South Eregala is secured before proceeding with Ocean Hill drilling [33] Question: What is the expected field decline profile for Wollering? - If additional gas is not found, the company can purchase gas on the market to meet contractual obligations [45] Question: What is the current status of the West Eregala JV? - The company is working with its joint venture partner to finalize steps required to reach FID in the second half of next year [54][58]

Financial Highlights and Business Overview [Fiscal Q4 and Full Year 2025 Performance](index=1&type=section&id=Fiscal%20Q4%20and%20Full%20Year%202025%20Performance) Seagate reported strong financial results for fiscal Q4 and the full year 2025, driven by a 30% year-over-year revenue increase in the fourth quarter and significant margin expansion. The performance was bolstered by strong demand from cloud customers for high-capacity drives and structural business enhancements - The company highlighted a strong FQ4 with a **30% year-over-year revenue increase**, **record gross margin**, and **non-GAAP EPS at the top of the guidance range**, attributed to structural business enhancements and strong demand from cloud customers[2](index=2&type=chunk) - Seagate is continuing to execute its ramp plans for areal density-leading HAMR products to meet growing customer demand for mass data storage in cloud and edge markets[3](index=3&type=chunk) Fiscal Q4 2025 Financial Performance (GAAP vs. Non-GAAP) | Metric | GAAP FQ4 2025 | Non-GAAP FQ4 2025 | GAAP FQ4 2024 | Non-GAAP FQ4 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenue ($M)** | $2,444 | $2,444 | $1,887 | $1,887 | | **Gross Margin** | 37.4% | 37.9% | 31.8% | 30.9% | | **Operating Margin** | 23.2% | 26.2% | 16.6% | 17.3% | | **Net Income ($M)** | $488 | $556 | $513 | $222 | | **Diluted EPS** | $2.24 | $2.59 | $2.39 | $1.05 | Fiscal Year 2025 Financial Performance (GAAP vs. Non-GAAP) | Metric | GAAP FY 2025 | Non-GAAP FY 2025 | GAAP FY 2024 | Non-GAAP FY 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenue ($M)** | $9,097 | $9,097 | $6,551 | $6,551 | | **Gross Margin** | 35.2% | 35.8% | 23.4% | 25.5% | | **Operating Margin** | 20.8% | 23.4% | 6.9% | 10.3% | | **Net Income ($M)** | $1,469 | $1,733 | $335 | $272 | | **Diluted EPS** | $6.77 | $8.10 | $1.58 | $1.29 | [Cash Flow, Capital Return, and Balance Sheet](index=2&type=section&id=Cash%20Flow,%20Capital%20Return,%20and%20Balance%20Sheet) The company demonstrated robust cash generation in FY 2025, with $1.1 billion in operating cash flow and $818 million in free cash flow. This supported shareholder returns of $600 million via dividends and a significant debt reduction of $684 million, strengthening the balance sheet Cash Flow and Capital Management (FY 2025) | Metric | Amount ($M) | | :--- | :--- | | Cash flow from operations | $1,100 | | Free cash flow | $818 | | Returned to shareholders (dividends) | $600 | - The company strengthened its balance sheet by reducing total debt by approximately **$684 million** during fiscal year 2025, ending the year with total debt of **$5.0 billion**[7](index=7&type=chunk) - The Board of Directors declared a quarterly cash dividend of **$0.72 per share**, payable on October 9, 2025[9](index=9&type=chunk) [Business Outlook (FQ1 2026 Guidance)](index=2&type=section&id=Business%20Outlook%20(FQ1%202026%20Guidance)) Seagate provides a positive outlook for the first quarter of fiscal 2026, forecasting revenue of $2.50 billion (±$150 million) and non-GAAP diluted EPS of $2.30 (±$0.20). This guidance incorporates the estimated impact of the Pillar Two global minimum tax framework Guidance for Fiscal First Quarter 2026 | Metric | Guidance Range | | :--- | :--- | | **Revenue** | $2.50 billion ± $150 million | | **Non-GAAP Diluted EPS** | $2.30 ± $0.20 | - The FQ1 2026 guidance includes the estimated impact of the Pillar Two global minimum tax framework, the net dilutive impact from the 2028 Exchangeable Senior Notes, and minimal expected impact from current global tariff policies[13](index=13&type=chunk) - A reconciliation of non-GAAP diluted EPS guidance to the comparable GAAP measure is not provided, as material items that may impact these measures are out of the company's control and cannot be reasonably predicted[12](index=12&type=chunk) Consolidated Financial Statements (GAAP) [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 27, 2025, Seagate's total assets increased to $8.02 billion from $7.74 billion a year prior. Total liabilities decreased to $8.48 billion from $9.23 billion, leading to a significant improvement in the total shareholders' deficit, which narrowed from -$1.49 billion to -$453 million Balance Sheet Summary (in millions) | Account | June 27, 2025 | June 28, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $3,653 | $3,332 | | **Total Assets** | $8,023 | $7,739 | | **Total Current Liabilities** | $2,648 | $3,099 | | **Total Liabilities** | $8,476 | $9,230 | | **Total Shareholders' Deficit** | ($453) | ($1,491) | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For fiscal year 2025, Seagate's revenue grew to $9.10 billion from $6.55 billion in FY 2024. This top-line growth, combined with improved cost management, resulted in a substantial increase in GAAP net income to $1.47 billion, up from $335 million in the prior year Statement of Operations Summary (in millions, except per share data) | Account | FY 2025 | FY 2024 | | :--- | :--- | :--- | | **Revenue** | $9,097 | $6,551 | | **Income from operations** | $1,890 | $452 | | **Net income** | $1,469 | $335 | | **Diluted net income per share** | $6.77 | $1.58 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In fiscal year 2025, the company generated $1.08 billion in net cash from operating activities, an increase from $918 million in FY 2024. Net cash used in financing activities was $1.27 billion, primarily due to debt redemption, while investing activities used $276 million. This resulted in a net decrease in cash of $467 million for the year Statement of Cash Flows Summary (in millions) | Activity | FY 2025 | FY 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $1,083 | $918 | | **Net cash (used in) provided by investing activities** | ($276) | $126 | | **Net cash used in financing activities** | ($1,274) | ($473) | | **(Decrease) increase in cash** | ($467) | $572 | | **Cash at end of year** | $893 | $1,360 | Non-GAAP Financial Measures and Reconciliations [Use and Explanation of Non-GAAP Measures](index=7&type=section&id=Use%20and%20Explanation%20of%20Non-GAAP%20Measures) Seagate uses non-GAAP financial measures to evaluate its core operating performance by excluding items it believes are not indicative of ongoing operations, such as share-based compensation, restructuring costs, and acquisition-related charges. These measures are intended to provide investors with a supplemental view of the company's performance - Management uses non-GAAP results to assess performance, allocate resources, and plan for future periods, as they are believed to exclude items not part of ongoing operations and thus provide a better understanding of core operating results[25](index=25&type=chunk)[26](index=26&type=chunk) - Key non-GAAP adjustments include the exclusion of share-based compensation, restructuring costs, acquisition-related charges, purchase order cancellation fees, and strategic investment gains/losses[36](index=36&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk) - Free Cash Flow is defined as net cash from operating activities less capital expenditures. Adjusted EBITDA is defined as net income before interest, taxes, depreciation, and amortization, further adjusted for non-core items. These are used to assess liquidity and comply with debt covenants[46](index=46&type=chunk)[47](index=47&type=chunk) [GAAP to Non-GAAP Reconciliations](index=8&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliations) The company provides detailed reconciliations from GAAP to non-GAAP results. For FY 2025, key adjustments included adding back $200 million in share-based compensation and $38 million in restructuring charges to derive non-GAAP income from operations of $2.13 billion and non-GAAP net income of $1.73 billion [Gross Profit and Operating Income Reconciliation](index=8&type=section&id=Gross%20Profit%20and%20Operating%20Income%20Reconciliation) For fiscal year 2025, Non-GAAP Gross Profit was $3.26 billion (35.8% margin) compared to GAAP Gross Profit of $3.20 billion (35.2% margin). Non-GAAP Income from Operations was $2.13 billion (23.4% margin) versus GAAP Income from Operations of $1.89 billion (20.8% margin), with primary adjustments being share-based compensation and restructuring charges FY 2025 GAAP vs. Non-GAAP Operating Metrics (in millions) | Metric | GAAP | Non-GAAP | Key Adjustments | | :--- | :--- | :--- | :--- | | **Gross Profit** | $3,200 | $3,255 | Share-based compensation ($51), Restructuring ($13), Purchase order fees (-$9) | | **Gross Margin** | 35.2% | 35.8% | - | | **Operating Income** | $1,890 | $2,127 | Share-based compensation ($200), Restructuring ($38) | | **Operating Margin** | 20.8% | 23.4% | - | [Net Income and EPS Reconciliation](index=9&type=section&id=Net%20Income%20and%20EPS%20Reconciliation) In fiscal year 2025, Seagate's GAAP Net Income was $1.47 billion ($6.77 per diluted share). After adjustments, including adding back $200 million for share-based compensation and $53 million for strategic investment losses, Non-GAAP Net Income was $1.73 billion ($8.10 per diluted share) FY 2025 GAAP vs. Non-GAAP Net Income & EPS | Metric | GAAP | Non-GAAP | Key Adjustments ($M) | | :--- | :--- | :--- | :--- | | **Net Income ($M)** | $1,469 | $1,733 | Share-based compensation ($200), Strategic investment losses ($53), Restructuring ($38) | | **Diluted EPS** | $6.77 | $8.10 | - | [Free Cash Flow and EBITDA Reconciliation](index=10&type=section&id=Free%20Cash%20Flow%20and%20EBITDA%20Reconciliation) For fiscal year 2025, Free Cash Flow was calculated at $818 million, derived from $1.08 billion in net cash from operating activities minus $265 million in capital expenditures. Non-GAAP Adjusted EBITDA for the last twelve months totaled $2.35 billion FY 2025 Free Cash Flow Calculation (in millions) | Metric | Amount | | :--- | :--- | | Net Cash Provided by Operating Activities | $1,083 | | Less: Acquisition of property, equipment | ($265) | | **Free Cash Flow** | **$818** | - Last Twelve Months (LTM) Non-GAAP Adjusted EBITDA was **$2,349 million**[34](index=34&type=chunk)

Here is how Seagate performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: View all Key Company Metrics for Seagate here>>> Seagate (STX) reported $2.44 billion in revenue for the quarter ended June 2025, representing a year-over-year increase of 29.5%. EPS of $2.59 for the same period compares to $1.05 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $2.41 billion, representing a surprise of +1.61%. The company ...