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• Revenue: $2.16 billion, down 7% sequentially, but a 31% year-on-year increase.

• Non-GAAP Gross Margin: 36.2%, expanded by 70 basis points sequentially and over 1,000 basis points year-over-year.

• Non-GAAP Operating Margin: 23.5% of revenue, increased sequentially.

• Non-GAAP EPS: $1.90, at the top end of guidance range.

• Free Cash Flow: $216 million, up from $150 million in the prior period.

• Hard Drive Revenue: $2 billion, down 8% sequentially.

• Mass Capacity Revenue: $1.7 billion, a 48% year-on-year increase.

• Nearline Shipments: 120 exabytes, down 5% sequentially, up 55% year-on-year.

• Non-GAAP Gross Profit: $781 million, compared to $825 million in the prior quarter.

• Non-GAAP Operating Expenses: $274 million, down 5% quarter-over-quarter.

• Adjusted EBITDA: $563 million, doubling year-on-year.

• Non-GAAP Net Income: $407 million.

• Capital Expenditures: $43 million for the quarter.

• Debt Balance: $5.1 billion, with a net leverage ratio of 2.1 times.

• June Quarter Revenue Outlook: Expected to be $2.4 billion, plus or minus $150 million.

• June Quarter Non-GAAP EPS Outlook: Expected to be $2.40, plus or minus $0.20.

• Warning! GuruFocus has detected 6 Warning Signs with STX.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Seagate Technology Holdings PLC (NASDAQ:STX) reported a 31% year-on-year increase in revenue and an 81% growth in non-GAAP gross profit dollars.

• The company expanded its gross margin for the eighth consecutive quarter, achieving the third highest operating margin in its history.

• Seagate's HAMR-based Mozaic drives, the industry's only 3 terabyte per disk products, are ramping up volume to qualified customers.

• The company has strong demand visibility into the first half of calendar 2026, with new build-to-order agreements being negotiated.

• Seagate is effectively managing its debt, having retired approximately $536 million during the quarter, and plans to continue reducing debt in the coming quarters.

Negative Points

• Revenue for the March quarter was down 7% sequentially, limited by temporary supply constraints.

• Mass capacity shipments were down 5% sequentially, despite a 50% year-on-year increase.

• There is potential risk from tariffs, which could impact customer buying decisions and financial performance in future quarters.

• Non-GAAP operating expenses are expected to increase in the September quarter due to an additional week in the period.

• The company faces challenges in maintaining supply-demand balance and managing operational issues that previously affected supply.