Seagate Technology Hldngs Pl — Income Statement, Cash Flows & Balance Sheet
Is Seagate profitable?
Seagate swung from a significant loss two years ago to its strongest profit in recent memory, driven by a sharp revenue rebound.
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Revenue ($M) | $7,384 | $6,551 | $9,097 |
| Gross profit ($M) | $1,351 | $1,536 | $3,200 |
| Gross margin | 18.3% | 23.4% | 35.2% |
| Operating income (loss) ($M) | $(342) | $452 | $1,890 |
| Net income (loss) ($M) | $(529) | $335 | $1,469 |
Revenue jumped nearly 39% in fiscal year 2025, but the more striking story is on margins — gross margin nearly doubled versus two years prior, meaning Seagate is keeping a much larger slice of each dollar of sales. The operating turnaround from a $342M loss to a $1.9B profit reflects both volume recovery in the hard disk drive market and meaningful cost discipline.
A handful of one-time items run through the income statement, but the underlying business improvement is real.
| Item | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| BIS settlement penalty ($M) | $300 | $— | $— |
| Net gain from business divestiture ($M) | $— | $313 | $8 |
| Restructuring and other, net ($M) | $102 | $(30) | $25 |
| Net gain from interest rate swap termination ($M) | $— | $104 | $— |
FY2023 results were dragged down by a $300M regulatory penalty related to sales to Huawei, and FY2024 was flattered by a $313M gain from selling Seagate's chip (SoC) operations to Broadcom. FY2025 is the cleanest picture of the three years, with only modest one-time charges.
Where does Seagate's revenue come from?
Original equipment manufacturers (OEMs) — think major cloud and server builders — account for the vast majority of revenue and drove nearly all of the growth this year.
| Channel | FY2023 | FY2024 | FY2025 | Change (FY24–FY25) |
|---|---|---|---|---|
| OEMs ($M) | $5,448 | $4,896 | $7,282 | +$2,386 / +49% |
| Distributors ($M) | $1,119 | $972 | $1,060 | +$88 / +9% |
| Retailers ($M) | $817 | $683 | $755 | +$72 / +11% |
OEM customers, likely reflecting strong demand from data center and cloud infrastructure buildouts, powered the recovery. Retail and distributor channels grew modestly, suggesting the surge is concentrated in enterprise and cloud storage rather than consumer products.
Does Seagate generate cash?
Seagate generated solid operating cash flow, and after modest capital spending, free cash flow (operating cash minus capital expenditures — a non-GAAP measure) was healthy.
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Operating cash flow ($M) | $942 | $918 | $1,083 |
| Capital expenditures ($M) | $(316) | $(254) | $(265) |
| Free cash flow ($M) | $626 | $664 | $818 |
| Dividends paid ($M) | $(582) | $(585) | $(600) |
Operating cash flow grew meaningfully alongside profits, and capital spending remained restrained, leaving substantial free cash flow. Seagate returned virtually all of that free cash flow to shareholders via dividends, a pattern it has maintained consistently across all three years.
How strong is Seagate's balance sheet?
Seagate carries a substantial debt load, but meaningfully reduced its shareholders' deficit over the past year.
| Metric | FY2024 | FY2025 |
|---|---|---|
| Total debt ($M) | $5,674 | $4,995 |
| Cash and equivalents ($M) | $1,358 | $891 |
| Net debt ($M) | $4,316 | $4,104 |
| Total shareholders' deficit ($M) | $(1,491) | $(453) |
Seagate carries more debt than equity — it operates with a "shareholders' deficit," meaning accumulated losses and dividends over the years exceed what shareholders originally invested. That said, the deficit shrank substantially as net income rebuilt retained earnings. Debt maturities are manageable in the near term, with the next major obligation ($1.5B in exchangeable notes) not due until 2028.
Liquidity is adequate, supported by an untapped credit facility, though cash balances fell year over year.
| Metric | FY2024 | FY2025 |
|---|---|---|
| Cash and equivalents ($M) | $1,358 | $891 |
| Revolving credit facility ($M) | — | $1,300 |
| Combined available liquidity ($M) | ~$1,358 | ~$2,191 |
Cash on hand declined as Seagate refinanced older, higher-cost debt and paid dividends, but the company entered fiscal year 2026 with a new $1.3B revolving credit facility that was fully undrawn. Combined with cash, that provides a meaningful liquidity cushion relative to near-term obligations.