Seagate Posts 42.2% Q2 Gross Margin, Forecasts 34% Revenue Rise
Seagate Technology achieved a record non-GAAP gross margin of 42.2% in fiscal Q2, up 210 basis points sequentially and 670 basis points year-over-year. The company forecasts fiscal Q3 revenue of $2.9 billion (±$100 million, +34% YoY) and non-GAAP operating margin near 30%.
1. Record Q2 Gross Margin
Seagate achieved a non-GAAP gross margin of 42.2% in fiscal Q2, marking a sequential increase of 210 basis points and a year-over-year gain of 670 basis points.
2. Drivers of Margin Expansion
The margin uptick was driven by stronger adoption of high-capacity nearline products and targeted pricing initiatives that modestly increased revenue per terabyte, enhancing value for hyperscale customers.
3. Q3 Revenue and Margin Guidance
Seagate forecasts fiscal Q3 revenue of $2.9 billion plus or minus $100 million, reflecting 34% year-over-year growth at the midpoint, and anticipates non-GAAP operating margin approaching 30%.
4. Competitive Context
This performance trails Western Digital’s 46.1% Q2 gross margin but underscores Seagate’s ability to capture market share through nearline drive expansion and pricing stability.