Seagate Technology Holdings plc reported a significant increase in its financial performance for the fiscal year ending June 27, 2025, with total revenue reaching approximately $9.1 billion, a 39% increase from $6.6 billion in the previous fiscal year. The company achieved a gross margin of 35%, up from 23% in fiscal 2024, and net income soared to $1.5 billion compared to $335 million the prior year. This growth was primarily driven by increased demand for high-capacity nearline drives, particularly from cloud customers, and favorable pricing strategies.
The company also noted substantial operational changes, including the acquisition of Intevac, Inc. for $47 million, which is expected to enhance its manufacturing capabilities. Seagate's total HDD shipments amounted to 595 exabytes, with mass capacity storage accounting for 81% of revenue, reflecting a shift in focus from legacy markets. The company’s customer base remains concentrated, with one customer accounting for approximately 10% of total revenue, highlighting the importance of maintaining strong relationships with key clients.
In terms of operational metrics, Seagate's employee headcount stood at approximately 30,000, with a significant portion based in Asia. The company has also made strides in geographic expansion, with 49% of revenue generated from the Americas, up from 35% in the previous year. The increase in revenue from the Americas was complemented by a decrease in the Asia Pacific region's contribution, which fell from 53% to 41%. This shift indicates a strategic realignment in market focus.
Seagate's outlook remains cautiously optimistic, with expectations of continued growth driven by the increasing demand for data storage solutions, particularly in the context of emerging technologies such as generative AI. However, the company acknowledged the challenges posed by macroeconomic conditions, including trade policy shifts and geopolitical tensions, which could impact future performance. The management emphasized the need to monitor these developments closely and adapt strategies accordingly to mitigate risks.
Overall, Seagate's fiscal year 2025 results reflect a robust recovery and strategic positioning within the data storage industry, with a clear focus on high-capacity solutions and operational efficiency. The company plans to leverage its recent acquisitions and market trends to sustain growth in the coming years.
About Seagate Technology Holdings plc
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