Seagate Sold Out Through 2027 as Q4 EPS Guidance Tops by 26%
STX•Seagate's nearline capacity is fully allocated through calendar 2027, driven by hyperscalers locking in multi-year Mozaic HAMR contracts. Q4 2026 non-GAAP EPS guidance of $5.00 tops consensus by nearly 26%, supported by a record 47.0% gross margin and $953 million in free cash flow.
1. Sold-Out Through 2027
Seagate has fully allocated its nearline hard drive capacity through calendar 2027 under build-to-order contracts, eliminating inventory-glut risk and giving the company unprecedented revenue visibility.
2. Q4 2026 EPS Guidance
Management set Q4 fiscal 2026 non-GAAP EPS guidance at $5.00, nearly 26% above Wall Street consensus, reflecting robust demand and secure pricing from long-term hyperscaler agreements.
3. Record Margins and Cash Flow
Non-GAAP gross margin reached an all-time high of 47.0% in Q3 2026, up from 36.2% a year earlier, while quarterly free cash flow totaled $953 million, enabling accelerated debt retirement.
4. Mozaic HAMR Competitive Edge
Seagate’s second-generation Mozaic HAMR platform delivers 44 terabytes per drive—over 30% more capacity than its predecessor—strengthening its position against Western Digital in large-capacity HDDs for AI workloads.
