Seagate Reports 22% Q2 Revenue Growth, Guides $2.9B Q3 With 1.5M HAMR Shipments
Seagate's ten-year $1,000 investment has surged 1,325.67% to $14,256.69, outpacing the S&P 500's 266.59% and gold's 288.56% gains. Recent fiscal Q2 results showed $2.83 billion revenue (+22% YoY), record 42.2% operating margin, and Mozaic HAMR drive shipments topping 1.5 million, with Q3 outlook of $2.9 billion (+/-$100 million).
1. Decade-Long Performance
Seagate's $1,000 investment in February 2016 would be worth $14,256.69 today, a 1,325.67% gain that far exceeds the S&P 500's 266.59% and gold's 288.56% returns over the same period, excluding dividends.
2. Fiscal Q2 Results
In fiscal Q2, Seagate reported $2.83 billion in revenue, up 22% year over year, and achieved a record 42.2% operating margin, driven by increased demand for high-capacity nearline products and pricing initiatives.
3. HAMR Drive Expansion
The company shipped over 1.5 million Mozaic HAMR drives during the December quarter, with qualifications from major cloud providers and a roadmap targeting 10 TB-per-disk areal density to boost future margins and capacity.
4. Q3 Outlook and Guidance
Seagate forecasts fiscal Q3 revenue of $2.9 billion (+/- $100 million), reflecting a 34% year-over-year gain at midpoint, and expects free cash flow growth, operational efficiency, and 4%–6% revenue-based capex in fiscal 2026.