Seagate Technology (STX)

Information Technology · $115B market cap · SEC CIK 0001137789

Next reports on Jan 25, 2027, with analysts expecting $9.37 in earnings per share.

52-week range $228.61 to $1,145. 56% below its 52-week high and 119% above its low.

The case for STX

• Revenue up 44.4% on the year.
• Generated $3.1B of free cash flow in FY2026, 25% of revenue.
• Earns 245% on shareholder equity.
• 32% of revenue drops through to net profit.
• Earnings per share up 144.0%.
• Reasonably priced for its growth: 26.2× earnings, where 21% a year of growth would justify about 40×.

The case against

• Swings harder than the market (beta 2.24).
• Priced at 56× book value. Very little hard asset backing here.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Its dividend figures disagree with each other (a 3.7% yield against about 0.6% implied by its payout ratio and P/E), so the dividend is not counted.
• Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.

The financials

The financials, five years deep

Pulled from Seagate Technology's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What Seagate Technology says it does

Seagate is a leading provider of mass-capacity data storage, accelerating the world’s ability to harness the full value of data. For nearly 50 years, our portfolio of advanced storage solutions has helped hyperscale, cloud service providers (“CSPs”), enterprises and consumers protect, create and manage the data that powers their transformation and growth. Hard disk drives (“HDDs”) remain a foundational technology for delivering scalable, energy-efficient, mass-capacity storage with favorable storage economics that underpins modern digital infrastructure. Our vertically integrated engineering and manufacturing capabilities, together with continued investment in advanced storage technologies, position us to address customers' evolving storage requirements. We design and manufacture HDDs, storage systems and related solutions serving two principal end markets: Data Center : Cloud and enterprise environments that rely on scalable,…

Risk factors STX lists in its 10-K

• We are dependent on sales to distributors and retailers, which may increase price erosion and the volatility of our sales
• Changes in demand for computer systems, data storage subsystems and consumer electronic devices have previously caused, and may in the future cause, a decline in demand for our products
• We experience seasonal declines in the sales of our consumer products during the second half of our fiscal year which may adversely affect our results of operations
• Our worldwide sales and manufacturing operations subject us to risks that may adversely affect our business related to disruptions in international markets, currency exchange fluctuations and increased costs
• We may not be able to execute acquisitions, divestitures and other significant transactions successfully and we may have difficulty or fail to successfully integrate acquired companies
• Due to the complexity of our products, some defects may only become detectable after deployment, which may lead to increased costs and adversely affect our operating results
• We may not be able to generate sufficient cash flows from operations and our investments to meet our liquidity requirements, including servicing our indebtedness and continuing to declare our quarterly dividend
• Our quarterly results of operations fluctuate, sometimes significantly, from period to period, and may cause our share price to decline
• We are subject to counterparty default risks
• Our business is subject to various laws, regulations and governmental policies that may cause us to incur significant expense or adversely impact our results of operations and financial condition
• Changes in U.S. trade policy, including the imposition of sanctions or tariffs and the resulting consequences, may have a material and adverse impact on our business and results of operations
• Our business is exposed to risks associated with litigation, investigations and regulatory proceedings that may cause us to incur significant expense or adversely impact our results of operations and financial condition
• Note 12. Legal, Environmental and Other Contingencies
• Tax-related matters could have a material and adverse effect on our business, results of operations or financial condition
• We may be unable to protect our intellectual property rights, which could adversely affect our business, financial condition and results of operations
• Legal, Environmental and Other Contingencies
• Our business and certain products and services depend in part on intellectual property and technology licensed from third parties, as well as data centers and infrastructure operated by third parties
• The loss of or inability to attract, retain and motivate key executive officers and employees could negatively impact our business prospects
• We are subject to risks related to corporate and social responsibility that could adversely affect our reputation and performance
• The price of our ordinary shares may be volatile and could decline significantly

Filings

Other Information Technology companies