Seagate Secures 2027 Backlog, Propelling Margins to 29.5%
DELL•Seagate has allocated nearly all its nearline storage capacity through calendar 2027, accounting for about 90% of last quarter’s data capacity shipments. This secured backlog supports record operating margins rising from 19.3% to 29.5% and underpins a minimum 20% annual revenue growth target.
1. Nearline Capacity Fully Allocated Through 2027
In its latest earnings call, Seagate disclosed that its nearline hard drive capacity is almost fully committed through calendar 2027, covering roughly 90% of last quarter’s total data capacity shipments.
2. Margin Expansion Driven by Long-Term Contracts
The build-to-order contracts lock in configurations and pricing, enabling operating margins to increase from 19.3% a year ago to 29.5% over the past twelve months.
3. Revenue Growth Target Raised to 20%
With multi-year demand visibility, Seagate has set a minimum annual revenue growth target of 20%, signaling confidence in sustained AI-driven storage demand.
