Seagate revenue jumps 61% to $4.2B as exabyte supply sells out through 2028
BenBajarin · x · 2026-10-29
Seagate's September quarter results show revenue up 61% YoY to $4.2B with a 50.7% operating margin and 57.8% non-GAAP gross margin, up from 40.1% a year earlier.
Key takeaways:
- Growth was driven mostly by price, not volume: exabyte shipments rose just 21%, implying revenue per terabyte up roughly a third
- The vast majority of nearline exabyte supply is allocated under long-term agreements through calendar 2028, with some cloud deals running to 2030
- Management says the storage supply-demand gap is widening and intends to keep running the business on price
Creative Strategies' Atlas note argues denser drives and higher pricing are structurally changing storage economics.
Related event: Seagate revenue jumps 61% as HDD shortage pushes orders to 2028(2 posts)→
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