Recent News
Jan 14, 2026 — Seagate began shipping new 32‑TB drives to channel and retail partners, marking a capacity rollout for higher-density products. Jan 12–Mar 19, 2026 — multiple industry writeups and analyst commentary highlighted rising HDD pricing and tighter supply amid strong AI/data‑center demand, and noted continued product development toward higher‑capacity Mozaic platforms and volume ramps planned for early 2026.
Technical Analysis
ADX sits at 12.4, indicating no established trend in strength; this implies momentum may remain range‑dependent rather than sustained by a strong directional trend.
Directional indicators show bullish initiation: DI+ (18.19) shows a dip & reversal, and DI‑ (21.4) shows a peak & reversal — both pattern definitions signal bullish directional readings despite DI‑ remaining numerically above DI+, supporting a near‑term upward bias that aligns with margin and product tailwinds.
MACD stands at 4.45 with the signal line at 3.65 and a MACD dip & reversal; MACD currently sits above its signal line, constituting a bullish momentum confirmation and reinforcing short‑term upside potential.
MRO registers 12.4 (positive), indicating price currently sits above the model target and may encounter mean‑reversion pressure; that suggests any sustained advance could face corrective pullbacks before the next leg higher.
RSI at 55.29 with a dip & reversal shows recovering momentum inside a neutral band, consistent with runway for additional gains without immediate overbought risk.
Price sits well above longer moving averages: close $429.36 vs 50‑day $401.08 and 200‑day $264.24, showing price-based strength. Price also trades near the 1x‑stddev Bollinger upper band ($429.56), implying proximity to near‑term resistance where pullbacks often occur.
High short‑term beta (42‑day 2.34) and elevated realized volatility indicate amplified swing risk; lower average volumes versus longer averages suggest moves may accelerate on lighter turnover.
Fundamental Analysis
Revenue totaled $2,825,000,000 with revenue growth of 7.46% and year‑over‑year revenue growth of 2.94%; quarter‑over‑quarter revenue contracted about 1.52%, indicating near‑term topline moderation despite annual expansion.
Profitability improved: gross margin 41.63% and operating margin 29.95%; EBIT margin 27.58%, up 4.459 percentage points QoQ and up 47.721% YoY, showing material margin expansion versus recent periods. Industry peer mean for EBIT margin runs near 34.55% with a median near 35.37%, placing Seagate below peer mean/median on that metric despite meaningful improvement quarter‑to‑quarter.
Net income $593,000,000 and operating cash flow $723,000,000 produced free cash flow $607,000,000 and a free cash flow yield of 0.98%; free cash flow grew sharply QoQ but declined YoY. Interest coverage at 10.82 supports debt service despite elevated leverage levels.
Leverage metrics run high: total debt $4,804,000,000, net debt $3,453,000,000, debt‑to‑assets 55.17%, and debt‑to‑equity 10.47; industry peer mean debt‑to‑assets sits near 23.91% and debt‑to‑equity near 1.01, indicating materially higher leverage on several measures while interest coverage remains healthy.
EPS actual $3.11 versus estimate $2.84 produced a $0.27 beat and an EPS surprise ratio of 9.51%, underlining recent operational upside embedded in the quarter. Forward EPS $4.96 implies a forward P/E near 55.49; trailing P/E stands at 91.26, roughly in line with the industry peer mean (~90.84) and median (~92.34).
Book value per share $2.10 and price‑to‑book near 134.87 sit far above the industry peer mean (~9.31) and high (~19.82). WMDST values the stock as over‑valued; enterprise multiple at 77.52 sits modestly above the industry peer mean (~69.66), supporting WMDST’s valuation stance when paired with elevated leverage and the premium price‑to‑book.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-01-27 |
| NEXT REPORT DATE: | 2026-04-28 |
| CASH FLOW | Begin Period Cash Flow | $ 1.1 B |
| Operating Cash Flow | $ 723.0 M | |
| Capital Expenditures | $ -116.00 M | |
| Change In Working Capital | $ -65.00 M | |
| Dividends Paid | $ -154.00 M | |
| Cash Flow Delta | $ -66.00 M | |
| End Period Cash Flow | $ 1.0 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 2.8 B | |
| Forward Revenue | $ 1.3 B | |
| COSTS | ||
| Cost Of Revenue | $ 1.6 B | |
| Depreciation | $ 68.0 M | |
| Depreciation and Amortization | $ 68.0 M | |
| Research and Development | $ 187.0 M | |
| Total Operating Expenses | $ 2.0 B | |
| PROFITABILITY | ||
| Gross Profit | $ 1.2 B | |
| EBITDA | $ 847.0 M | |
| EBIT | $ 779.0 M | |
| Operating Income | $ 846.0 M | |
| Interest Income | $ 7.0 M | |
| Interest Expense | $ 72.0 M | |
| Net Interest Income | $ -65.00 M | |
| Income Before Tax | $ 707.0 M | |
| Tax Provision | $ 114.0 M | |
| Tax Rate | 16.125 % | |
| Net Income | $ 593.0 M | |
| Net Income From Continuing Operations | $ 593.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 2.84 | |
| EPS Actual | $ 3.11 | |
| EPS Difference | $ 0.27 | |
| EPS Surprise | 9.507 % | |
| Forward EPS | $ 4.96 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 8.7 B | |
| Intangible Assets | $ 1.2 B | |
| Net Tangible Assets | $ -762.00 M | |
| Total Current Assets | $ 4.2 B | |
| Cash and Short-Term Investments | $ 1.0 B | |
| Cash | $ 1.0 B | |
| Net Receivables | $ 1.2 B | |
| Inventory | $ 1.5 B | |
| Long-Term Investments | $ 419.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 1.8 B | |
| Short-Term Debt | $ 998.0 M | |
| Total Current Liabilities | $ 3.8 B | |
| Net Debt | $ 3.5 B | |
| Total Debt | $ 4.8 B | |
| Total Liabilities | $ 8.2 B | |
| EQUITY | ||
| Total Equity | $ 459.0 M | |
| Retained Earnings | $ -7.42 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 2.10 | |
| Shares Outstanding | 218.106 M | |
| Revenue Per-Share | $ 12.95 | |
| VALUATION | Market Capitalization | $ 61.9 B |
| Enterprise Value | $ 65.7 B | |
| Enterprise Multiple | 77.522 | |
| Enterprise Multiple QoQ | 27.886 % | |
| Enterprise Multiple YoY | 100.04 % | |
| Enterprise Multiple IPRWA | high: 204.564 STX: 77.522 median: 71.732 mean: 69.665 low: -8.421 |
|
| EV/R | 23.243 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 18.972 | |
| Asset To Liability | 1.056 | |
| Debt To Capital | 0.913 | |
| Debt To Assets | 0.552 | |
| Debt To Assets QoQ | -6.743 % | |
| Debt To Assets YoY | 816.717 % | |
| Debt To Assets IPRWA | STX: 0.552 high: 0.357 mean: 0.239 median: 0.239 low: 0.011 |
|
| Debt To Equity | 10.466 | |
| Debt To Equity QoQ | -113.203 % | |
| Debt To Equity YoY | -2457.631 % | |
| Debt To Equity IPRWA | STX: 10.466 high: 1.026 median: 1.026 mean: 1.005 low: 0.013 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 134.865 | |
| Price To Book QoQ | -119.968 % | |
| Price To Book YoY | -826.896 % | |
| Price To Book IPRWA | STX: 134.865 high: 19.815 mean: 9.311 median: 8.786 low: 0.955 |
|
| Price To Earnings (P/E) | 91.261 | |
| Price To Earnings QoQ | 19.792 % | |
| Price To Earnings YoY | 95.913 % | |
| Price To Earnings IPRWA | high: 145.013 median: 92.345 STX: 91.261 mean: 90.844 low: -5.303 |
|
| PE/G Ratio | 4.764 | |
| Price To Sales (P/S) | 21.913 | |
| Price To Sales QoQ | 35.386 % | |
| Price To Sales YoY | 154.488 % | |
| Price To Sales IPRWA | high: 28.823 median: 26.814 mean: 25.784 STX: 21.913 low: 0.7 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 55.493 | |
| Forward PE/G | 2.897 | |
| Forward P/S | 49.692 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1.643 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.329 | |
| Asset Turnover Ratio QoQ | 3.166 % | |
| Asset Turnover Ratio YoY | 12.872 % | |
| Asset Turnover Ratio IPRWA | high: 0.598 median: 0.389 mean: 0.384 STX: 0.329 low: 0.003 |
|
| Receivables Turnover | 2.436 | |
| Receivables Turnover Ratio QoQ | -5.844 % | |
| Receivables Turnover Ratio YoY | -36.339 % | |
| Receivables Turnover Ratio IPRWA | high: 3.608 median: 3.608 mean: 3.503 STX: 2.436 low: 0.774 |
|
| Inventory Turnover | 1.102 | |
| Inventory Turnover Ratio QoQ | 1.574 % | |
| Inventory Turnover Ratio YoY | 3.966 % | |
| Inventory Turnover Ratio IPRWA | high: 4.133 mean: 2.261 median: 1.736 STX: 1.102 low: 0.902 |
|
| Days Sales Outstanding (DSO) | 37.453 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 24.556 | |
| Cash Conversion Cycle Days QoQ | -2.149 % | |
| Cash Conversion Cycle Days YoY | 188.952 % | |
| Cash Conversion Cycle Days IPRWA | high: 102.53 STX: 24.556 mean: -77.583 low: -83.324 median: -83.324 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 6.306 | |
| CapEx To Revenue | -0.041 | |
| CapEx To Depreciation | -1.706 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 4.0 B | |
| Net Invested Capital | $ 5.0 B | |
| Invested Capital | $ 5.0 B | |
| Net Tangible Assets | $ -762.00 M | |
| Net Working Capital | $ 448.0 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.278 | |
| Current Ratio | 1.119 | |
| Current Ratio QoQ | 14.272 % | |
| Current Ratio YoY | -9.266 % | |
| Current Ratio IPRWA | high: 3.138 STX: 1.119 mean: 0.991 median: 0.974 low: 0.767 |
|
| Quick Ratio | 0.721 | |
| Quick Ratio QoQ | 17.02 % | |
| Quick Ratio YoY | -2.234 % | |
| Quick Ratio IPRWA | high: 2.325 mean: 0.942 median: 0.938 STX: 0.721 low: 0.476 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 5.672 | |
| Cost Of Debt | 1.432 % | |
| Interest Coverage Ratio | 10.819 | |
| Interest Coverage Ratio QoQ | 24.72 % | |
| Interest Coverage Ratio YoY | 109.408 % | |
| Interest Coverage Ratio IPRWA | high: 471.7 mean: 43.583 STX: 10.819 median: 7.672 low: -42.403 |
|
| Operating Cash Flow Ratio | 0.155 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 98.701 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 3.851 | |
| Dividend Payout Ratio | 0.26 | |
| Dividend Rate | $ 0.71 | |
| Dividend Yield | 0.002 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 3.151 % | |
| Revenue Growth | 7.455 % | |
| Revenue Growth QoQ | -1.519 % | |
| Revenue Growth YoY | 2.941 % | |
| Revenue Growth IPRWA | high: 40.296 % median: 40.296 % mean: 38.009 % STX: 7.455 % low: -9.306 % |
|
| Earnings Growth | 19.157 % | |
| Earnings Growth QoQ | 2381.477 % | |
| Earnings Growth YoY | -32.738 % | |
| Earnings Growth IPRWA | high: 165.385 % median: 53.514 % mean: 52.15 % STX: 19.157 % low: -60.0 % |
|
| MARGINS | ||
| Gross Margin | 41.628 % | |
| Gross Margin QoQ | 5.534 % | |
| Gross Margin YoY | 19.193 % | |
| Gross Margin IPRWA | high: 72.308 % median: 48.159 % mean: 47.131 % STX: 41.628 % low: 6.297 % |
|
| EBIT Margin | 27.575 % | |
| EBIT Margin QoQ | 4.459 % | |
| EBIT Margin YoY | 47.721 % | |
| EBIT Margin IPRWA | high: 66.821 % median: 35.374 % mean: 34.551 % STX: 27.575 % low: -28.966 % |
|
| Return On Sales (ROS) | 29.947 % | |
| Return On Sales QoQ | 11.36 % | |
| Return On Sales YoY | 60.427 % | |
| Return On Sales IPRWA | high: 35.374 % median: 35.374 % mean: 33.998 % STX: 29.947 % low: -48.621 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 607.0 M | |
| Free Cash Flow Yield | 0.981 % | |
| Free Cash Flow Yield QoQ | -2.193 % | |
| Free Cash Flow Yield YoY | 30.975 % | |
| Free Cash Flow Yield IPRWA | high: 11.683 % mean: 1.362 % median: 1.337 % STX: 0.981 % low: -0.276 % |
|
| Free Cash Growth | 42.155 % | |
| Free Cash Growth QoQ | 8850.106 % | |
| Free Cash Growth YoY | -90.746 % | |
| Free Cash Growth IPRWA | high: 564.774 % median: 94.639 % mean: 88.374 % STX: 42.155 % low: -95.25 % |
|
| Free Cash To Net Income | 1.024 | |
| Cash Flow Margin | 20.673 % | |
| Cash Flow To Earnings | 0.985 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 6.915 % | |
| Return On Assets QoQ | 3.689 % | |
| Return On Assets YoY | 63.94 % | |
| Return On Assets IPRWA | high: 12.292 % median: 11.4 % mean: 10.944 % STX: 6.915 % low: -5.85 % |
|
| Return On Capital Employed (ROCE) | 15.747 % | |
| Return On Equity (ROE) | 1.292 | |
| Return On Equity QoQ | -114.826 % | |
| Return On Equity YoY | -514.881 % | |
| Return On Equity IPRWA | STX: 1.292 high: 0.477 median: 0.477 mean: 0.441 low: -0.591 |
|
| DuPont ROE | 299.496 % | |
| Return On Invested Capital (ROIC) | 13.179 % | |
| Return On Invested Capital QoQ | 4.728 % | |
| Return On Invested Capital YoY | -124.009 % | |
| Return On Invested Capital IPRWA | high: 23.477 % median: 23.477 % mean: 22.544 % STX: 13.179 % low: -8.073 % |
|