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]

Core Viewpoint - Iron Mountain (IRM) is expected to report significant growth in quarterly earnings and revenues, with earnings per share projected at $1.19, a 183.3% increase year-over-year, and revenues forecasted at $1.68 billion, reflecting a 9.3% increase compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate for the quarter has remained unchanged over the past 30 days, indicating analysts have not revised their projections [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Revenues- Storage Rental Revenue' to be $990.44 million, indicating a year-over-year increase of 7.7% [4]. - 'Revenues- Service Revenue' is expected to reach $685.41 million, reflecting an 11.5% increase from the same quarter last year [5]. - The 'Global Data Center Business- Total Revenues' is projected at $189.73 million, a 24.3% year-over-year increase, while 'Global Data Center Business- Storage Rental' is expected to be $187.35 million, showing a 27.1% increase [5]. - 'Global Data Center Business- Service' is forecasted to decline to $3.52 million, a decrease of 33.7% year-over-year [5]. Additional Revenue Insights - 'Corporate and Other- Total Revenues' is estimated at $174.64 million, suggesting a 33.2% increase year-over-year [6]. - 'Global RIM Business- Service' is projected to reach $522.28 million, reflecting a 5.7% increase from the previous year [6]. - 'Global RIM Business- Total Revenue' is expected to be $1.32 billion, indicating a 5.6% increase year-over-year [6]. - 'Corporate and Other- Service' is estimated at $159.30 million, a 38.4% increase from the prior year [7]. - 'Global RIM Business- Storage Rental' is projected to be $798.52 million, reflecting a 5.6% increase year-over-year [7]. - 'Corporate and Other- Storage Rental' is expected to reach $17.18 million, indicating a 7.4% increase from the previous year [8]. EBITDA Projections - The 'Global Data Center Business- Adjusted EBITDA' is projected to be $94.15 million, compared to $66.02 million reported in the same quarter last year [8]. Stock Performance - Over the past month, Iron Mountain shares have decreased by 3.3%, while the Zacks S&P 500 composite has increased by 2.3%. The company holds a Zacks Rank 2 (Buy), suggesting it is likely to outperform the overall market in the upcoming period [8].

Core Points - Data Storage Corporation (DSC) plans to host a conference call on August 14, 2025, at 11:00 a.m. Eastern Time to discuss its progress and financial results for Q2 2025, which ended on June 30, 2025 [1] - The conference call will be accessible via telephone and webcast, with specific dialing instructions provided for both U.S. and international callers [2] - A replay of the conference call will be available on the company's website until February 14, 2026, and a telephone replay will be accessible for a limited time following the call [3] Company Overview - Data Storage Corporation, listed on Nasdaq as DTST, focuses on providing solutions that ensure business continuity, improve business processes, and enhance efficiency while aiming to build shareholder value [4]

Core Viewpoint - Western Digital has refocused on mechanical hard drives after the spin-off of its flash memory business, SanDisk, and reported strong financial performance for FY2025, indicating significant growth and confidence in its long-term cash generation capabilities [1][3]. Financial Performance - For FY2025, Western Digital achieved revenue of $9.52 billion (approximately ¥68.515 billion), a 51% increase compared to FY2024's revenue of $6.317 billion (excluding flash memory) [1]. - In Q4 FY2025, the company reported revenue of $2.605 billion (approximately ¥18.748 billion), representing a 30% year-over-year growth and a 14% quarter-over-quarter increase [3]. - The GAAP gross margin for FY2025 was 38.8%, with operating income of $2.334 billion, while the Non-GAAP gross margin was 39.4% with operating income of $2.336 billion [1]. - For Q4 FY2025, the GAAP gross margin was 41.0% with operating income of $680 million, and the Non-GAAP gross margin was 41.3% with operating income of $732 million [3]. Future Outlook - Western Digital expects revenue for Q1 FY2026 to be approximately $2.7 billion (around ¥19.432 billion), which would represent a year-over-year growth of about 22%, with a projected Non-GAAP gross margin of approximately 41.5% [3]. - The CEO expressed confidence in the company's long-term cash generation ability, highlighting the importance of mechanical hard drives in the global data infrastructure, especially in an AI-driven future [3].

Financial Data and Key Metrics Changes - For the fiscal fourth quarter, the company reported revenue of $2.6 billion, a 30% year-over-year increase, and non-GAAP earnings per share of $1.66, which was above the high end of the guidance range [11][15] - Non-GAAP gross margin was 41.3%, improving by 60 basis points year-over-year, reflecting a shift towards higher capacity drives and effective cost control [16][17] - Free cash flow for the quarter was $675 million, with operating cash flow at $746 million and capital expenditures of $71 million [19] Business Line Data and Key Metrics Changes - The cloud segment represented 90% of total revenue at $2.3 billion, up 36% year-over-year, driven by strong demand for higher capacity nearline products [16] - Client revenue accounted for 5% of total revenue at $140 million, up 2% year-over-year, while consumer revenue also represented 5% at $136 million, down 12% year-over-year [16] Market Data and Key Metrics Changes - Shipments of the latest generation ePMR drives with capacities up to 26 terabytes CMR and 32 terabytes Ultra SMR more than doubled quarter-over-quarter, exceeding 1.7 million units [8][11] - The company has firm purchase orders or long-term agreements with all top five hyperscale customers for the entire fiscal year 2026, indicating strong demand [11][12] Company Strategy and Development Direction - The company is focusing on operational execution, capital return programs, and leveraging AI-driven data growth to enhance storage solutions [6][10] - The transition to higher capacity drives and the development of HAMR technology are central to the company's strategy, with expectations for continued revenue growth driven by data center demand [9][20] Management's Comments on Operating Environment and Future Outlook - Management noted that while the broader environment remains uncertain due to tariffs, strong demand driven by AI is expected to continue [11][12] - For fiscal year 2026, the company anticipates revenue growth of approximately 22% year-over-year, with gross margin expected between 41% and 42% [20][21] Other Important Information - The company initiated a quarterly cash dividend program and authorized a $2 billion share repurchase program, repurchasing nearly $150 million worth of shares in the fourth quarter [11][19] - The balance sheet was strengthened with a reduction of $2.6 billion in debt, achieving a net leverage target of 1 to 1.5 times [11][18] Q&A Session Summary Question: Can you help us understand the gross margin guidance for September? - Management indicated that gross margin expansion is expected to slow due to various factors, including pricing stability and a favorable mix shift towards higher capacity drives [26][30] Question: How should investors think about share repurchase activity going forward? - Management expressed confidence in continuing to return cash to shareholders through dividends and share repurchases, with room for growth in the dividend program [34][37] Question: What is the ASP per terabyte for the last quarter? - Management noted that ASP per terabyte was down in low single digits, primarily due to mix, while ASPs per drive continue to rise with higher capacity drives [39][70] Question: How does the extra week in the quarter affect revenue and OpEx? - Management clarified that the extra week would add approximately $15 million in OpEx, but revenue impact would be minimal as customers operate on quarterly forecasts [75][76] Question: What is the outlook for AI's impact on growth? - Management highlighted that AI is expected to provide a significant uplift in exabyte growth, potentially increasing revenue growth from mid to high single digits to mid-teens [78][80]

Financial Data and Key Metrics Changes - For the fiscal fourth quarter, the company reported revenue of $2.6 billion, a 30% increase year-over-year, and non-GAAP earnings per share of $1.66, which was above the high end of the guidance range [11][15] - Non-GAAP gross margin was 41.3%, improving by 60 basis points year-over-year, reflecting a shift towards higher capacity drives and effective cost control [17][18] - Free cash flow for the quarter was $675 million, with operating cash flow at $746 million and capital expenditures of $71 million [20] Business Line Data and Key Metrics Changes - Cloud business represented 90% of total revenue at $2.3 billion, up 36% year-over-year, driven by strong demand for higher capacity nearline products [16] - Client business accounted for 5% of total revenue at $140 million, up 2% year-over-year, while consumer revenue also represented 5% at $136 million, down 12% year-over-year [17] Market Data and Key Metrics Changes - Shipments of the latest generation ePMR drives with capacities up to 26 terabytes CMR and 32 terabytes Ultra SMR more than doubled quarter-over-quarter, exceeding 1.7 million units [7][10] - The company has secured firm purchase orders or long-term agreements with all top five hyperscale customers for the entire fiscal year 2026, indicating strong demand [12][45] Company Strategy and Development Direction - The company is focusing on operational execution, capital return programs, and leveraging AI-driven data growth to enhance storage solutions [5][15] - The transition to next-generation HAMR technology is on track, with expectations for ramp-up in 2027, while the next generation of ePMR drives will complete qualification in 2026 [9][88] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued revenue growth driven by data center demand and improved profitability from high-capacity drives [12][21] - The company anticipates revenue for fiscal year 2026 to be approximately $2.7 billion, reflecting a year-over-year growth of about 22% [21] Other Important Information - The company initiated a quarterly cash dividend program and authorized a $2 billion share repurchase program, repurchasing nearly $150 million worth of shares in the fourth quarter [12][20] - The effective tax rate for the quarter was 9.3%, and diluted share count was approximately 362 million shares [18] Q&A Session Summary Question: Gross margin guidance for September - Management indicated that gross margin expansion is expected to slow due to various factors, including pricing stability and a favorable mix shift towards higher capacity drives [28][31] Question: Share repurchase activity and cash management - The company plans to continue returning cash to shareholders through dividends and share repurchases, with strong free cash flow generation supporting these initiatives [34][36] Question: ASP and non-HDD revenue - ASP per terabyte was down in low single digits, primarily due to mix, while the overall pricing environment remains stable [38][72] Question: Seasonality in the business - Management noted that traditional seasonality may not apply anymore due to the structural changes in the business, with strong demand from hyperscale customers driving revenue [42][46] Question: Adoption of Ultra SMR technology - The company has completed qualifications for Ultra SMR with multiple hyperscale customers, indicating a positive adoption curve [57] Question: Impact of tariffs and enterprise demand - Management has not seen material impacts from tariffs and noted that any potential softness in enterprise demand would be offset by cloud demand [66][68] Question: Hard drive ASPs and market capacity - The company emphasized that their ability to produce higher capacity drives at scale differentiates them in the market, and they do not foresee needing incremental investments into capacity [75]

Financial Performance - Q4FY25 revenue reached $2.6 billion[5], a 30% increase year-over-year[13] and a 14% increase quarter-over-quarter[13] - Non-GAAP EPS for Q4FY25 was $1.66[5], a 22% increase quarter-over-quarter[13] - Non-GAAP gross margin for Q4FY25 was 41.3%[5], a 610 bps increase year-over-year[13] - Cash flow from operations was $746 million[5], a 104% increase year-over-year[13] - Free cash flow was $675 million[5], a 139% increase year-over-year[13] Capital Allocation - Total debt was reduced by $2.6 billion[5] - A new $2.0 billion share repurchase program was authorized, with $149 million of shares repurchased[5] - A cash dividend of $0.10 per share was initiated[5] Business Segments - Cloud revenue accounted for 90% of total revenue in Q4FY25[7] Q1FY26 Guidance (Non-GAAP) - Revenue is expected to be $2.70 billion, with a variance of +/- $100 million[14] - Gross margin is projected to be between 41% and 42%[14] - EPS is expected to be $1.54, with a variance of +/- $0.15[14]

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]

Group 1 - Seagate reported $2.44 billion in revenue for the quarter ended June 2025, a year-over-year increase of 29.5% [1] - The EPS for the same period was $2.59, compared to $1.05 a year ago, indicating significant growth [1] - The reported revenue exceeded the Zacks Consensus Estimate of $2.41 billion, resulting in a surprise of +1.61% [1] Group 2 - Seagate's EPS surprise was +5.28%, with the consensus EPS estimate being $2.46 [1] - The company's shares returned +4.3% over the past month, outperforming the Zacks S&P 500 composite's +3.6% change [3] - Seagate currently holds a Zacks Rank 2 (Buy), suggesting potential for near-term outperformance [3] Group 3 - Capacity Shipped - Mass Capacity was 150.90 EB, slightly below the two-analyst average estimate of 152.01 EB [4] - Total Capacity Shipped was 162.50 EB, compared to the average estimate of 162.14 EB [4] - Revenue from HDD- Mass Capacity was $2.01 billion, matching the two-analyst average estimate and reflecting a year-over-year change of +40% [4] Group 4 - Revenue from HDD- Legacy was $270 million, exceeding the two-analyst average estimate of $245.91 million, but showing a year-over-year decline of -6.9% [4] - Capacity Shipped - Legacy was 11.50 EB, surpassing the two-analyst average estimate of 10.14 EB [4]

Financial Data and Key Metrics Changes - The company achieved record gross margin levels with a non-GAAP gross margin of 37.9%, up 170 basis points sequentially [3][4] - Revenue for June reached $2.44 billion, a 13% sequential increase and a 30% year-over-year increase [3][4] - For fiscal year 2025, revenue grew nearly 40% to $9.1 billion, with non-GAAP EPS of $8.10 [4][10] Business Line Data and Key Metrics Changes - Hard drive revenue increased by 14% sequentially, reaching $2.3 billion, driven by nearline cloud sales [4][5] - Mass capacity revenue exceeded $2 billion, up 15% sequentially and 40% year-over-year, with shipments of 151 exabytes [5][6] - Nearline shipments into cloud and edge data centers represented 91% of mass capacity volume, with a 14% sequential increase [5][6] Market Data and Key Metrics Changes - The data center market accounted for approximately 75% of fiscal year 2025 revenue, indicating strong demand from cloud and enterprise customers [7] - The company plans to focus on two main areas: data center and edge IoT, reflecting the AI-driven market [7] Company Strategy and Development Direction - The company is ramping HAMR-based MOSEIK products and has qualified three major cloud service providers [6][10] - The strategic focus is on enhancing profitability and optimizing cash generation through a structurally changed business model [13] - The company anticipates capital expenditures to be within the target range of 4% to 6% of revenue for fiscal year 2026 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained demand strength for high-capacity nearline drives, supporting revenue and margin expansion [11][12] - The company expects September revenue to be in the range of $2.5 billion, reflecting a 15% year-over-year improvement [12] - Management noted that the visibility gained through their B2O strategy instills confidence in future demand [11][12] Other Important Information - Free cash flow nearly doubled to $425 million in June, with a commitment to return nearly 75% of free cash flow to shareholders [10][11] - The company reduced its debt balance by approximately $150 million during the quarter, exiting with a gross debt of about $5 billion [11] Q&A Session Summary Question: Can you confirm the implied gross margin guidance for September? - Management indicated that the estimate was significantly lower than what is implied in the guidance, expecting higher gross and operating margins than modeled [18][19] Question: What are the trends in AI inference edge demand? - Management noted strong demand for video properties in the cloud and various applications at the edge, indicating growth in data storage needs [22][24] Question: How is the HAMR contribution expected to change in the coming quarters? - Management confirmed steady growth in HAMR and expects a positive impact on gross margins as higher capacity drives are ramped up [35][36] Question: What is the outlook for revenue growth and capacity ramp? - Management stated that demand is strong and above supply, with guidance based on production capabilities and ongoing qualifications [44][46] Question: How does the company view the competitive landscape with NAND? - Management emphasized that the interface between NAND and HDD remains stable, with a strong value proposition for mass data storage in cloud markets [121][122] Question: Can you provide insights on gross margin drivers for September? - Management indicated that improvements would come from higher HAMR volume, better pricing, and cost reductions per terabyte [129][130]