Seagate Technology Holdings plc Q3 FY2025 Earnings Call

· Earnings call transcript and AI-powered summary

Overview

  • Seagate reported strong year-on-year growth and margin expansion driven by robust cloud demand, increased mix of high-capacity drives, and continued operational improvements.
  • Revenue of $2.16 billion was above guidance midpoint but down 7% sequentially due to temporary supply constraints.
  • Non-GAAP EPS of $1.90 reached the top of guidance, supported by stronger gross margins and expense discipline.
  • Cloud nearline demand remains tight, with exabytes nearly doubling year-on-year.
  • HAMR product ramp accelerating, with multiple hyperscale qualification cycles nearing completion.

Key Financial Metrics

  • Revenue: $2.16B
    • Down 7% sequentially vs. Q2 FY25 ($2.32B).
    • Up 31% year-on-year vs. Q3 FY24 (~$1.65B).
  • Mass Capacity Revenue: $1.7B
    • Down $145M sequentially.
    • Up 48% year-on-year.
  • Nearline Exabytes: 120 EB
    • Down 5% sequentially (126 EB prior quarter).
    • Up 55% year-on-year.
  • Non-GAAP Gross Margin: 36.2%
    • Up 70 bps sequentially.
    • Up over 1,000 bps year-on-year.

Continue Reading

Unlock the full AI-powered summary with key highlights, financial performance, and analyst Q&A.

Upgrade to Professional
Operator: Welcome to the Seagate Technology Fiscal Third Quarter 2025 Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Shanye Hudson, Senior Vice President, Investor Relations. Please go ahead. Shanye Hudson: Thank you. Hello everyone and welcome to today's call. Joining me are Dave Mosley, Seagate's Chief Executive Officer, and Gianluca Romano, our Chief Financial Officer. We've posted our earnings press release and the detailed supplemental information for our March quarter results on the Investors section of our website. During today's call, we will refer to GAAP and non-GAAP measures. Non-GAAP figures are reconciled to GAAP figures in the earnings press release posted on our website and included in our Form 8-K. We've not reconciled certain non-GAAP outlook measures, because the material items that may impact these measures are out of our control and/or cannot be reasonably predicted. Therefore, reconciliation to the corresponding GAAP measures is not available without unreasonable effort. Before we begin, I'd like to remind you that today's call contains forward-looking statements that reflect management's current views and assumptions based on information available to us as of today, should not be relied upon as of any subsequent date. Actual resu

Continue Reading

Unlock the full earnings call transcript with speaker labels and formatted dialogue.

Upgrade to Professional