Seagate Resumes Buybacks, Reports $607M Free Cash Flow in Q2
Seagate resumed share repurchases for the first time in its cycle, returning $154 million to shareholders through dividends and note retirements. The company generated $723 million in operating cash flow and $607 million in free cash flow in fiscal Q2 2026 and expects further FCF growth.
1. Resumption of Share Repurchases
Seagate resumed share repurchases after a hiatus, marking a notable shift in capital allocation strategy and signaling management’s confidence in cash generation capacity.
2. Strong Q2 Cash Flow and Returns
In fiscal Q2 2026, Seagate generated $723 million in operating cash flow and $607 million in free cash flow, returning $154 million through dividends and retiring $500 million of exchangeable senior notes.
3. Note Retirement and FCF Outlook
The retirement of $500 million in senior notes reduces dilution risk and preserves flexibility for future buybacks, while Seagate expects free cash flow to rise further in the March quarter due to strong demand and operational efficiencies.