Seagate Technology reported sharply higher quarterly revenue and profit on Wednesday, saying robust cloud data-center demand and growing artificial-intelligence workloads lifted demand for mass-capacity storage. Revenue reached $3.629 billion in the fiscal fourth quarter ended July 3, up 48 percent from $2.444 billion a year earlier, while GAAP net income rose to $1.294 billion from $488 million.
The Singapore-released results capped a fiscal year in which revenue increased 34 percent to $12.195 billion. Annual GAAP net income more than doubled to $3.184 billion from $1.469 billion, and diluted earnings per share climbed to $13.90 from $6.77. Seagate said annual free cash flow reached a company record of $3.105 billion, compared with $818 million in fiscal 2025.
Chief Executive Dave Mosley attributed the performance to cloud data-center demand and disciplined execution. He said AI is accelerating the creation and economic value of data, supporting durable demand for high-capacity storage. The company identified its Mozaic platform and heat-assisted magnetic recording, known as HAMR, as central to increasing the amount of data customers can store efficiently.
Fourth-quarter GAAP gross margin expanded to 52.3 percent from 37.4 percent a year earlier, while GAAP diluted earnings reached $5.58 a share. On an adjusted basis, which excludes specified items and is not directly comparable with GAAP, Seagate reported earnings of $5.71 a share and a 52.7 percent gross margin. Quarterly operating cash flow was $1.305 billion and free cash flow was $1.118 billion.
Seagate used the stronger cash generation to reduce debt and return capital. It retired $302 million of debt during the quarter and $1.4 billion over the year, ending fiscal 2026 with $3.6 billion of total debt and $1.7 billion in cash and equivalents. It also returned $810 million through dividends and share repurchases during the year and declared a $0.74 quarterly dividend payable October 7 to eligible shareholders.
For the fiscal first quarter of 2027, Seagate forecast revenue of $4.1 billion, plus or minus $100 million, and adjusted diluted earnings of $7.30 a share, plus or minus $0.20. The company said that outlook assumes minimal effects from global tariffs and the current Middle East conflict, while cautioning that demand, trade restrictions and the ramp of HAMR-based products remain among the factors that could change actual results.
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