Earnings Call
Apr 28, 2026
Q1 FY2026
EPS Estimate
3.50
EPS Actual
2.61
Post-Earnings Close
$643.30
Earnings Reaction
+11.1%
Seagate's fiscal first quarter of 2026 was defined by a record gross margin, an EPS beat, and a demand narrative that is structurally shifting rather than cyclically recovering. Revenue of $2.63 billion grew 21% year-over-year and 8% sequentially, while non-GAAP gross margin reached 40.1%, a new company record, and non-GAAP operating margin climbed to 29%, a level not seen since fiscal 2012. Non-GAAP EPS of $2.61 exceeded the top of guidance, and management raised the quarterly dividend by approximately 3% to $0.74 per share, signaling confidence in the durability of cash generation. The incremental margin on the quarter came in near 70%, well above the 50% framework presented at the May Analyst Day, driven by accelerating mix shift toward higher-capacity HAMR-based Mozaic drives and consistent like-for-like pricing discipline maintained across roughly ten consecutive quarters of contract renegotiations.
Report generated on Apr 27, 2026
AI-generated earnings analysis. Not investment advice.
Chief Executive Officer
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
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