Seagate Technology (0Y2A.L) Q1 2026 Earnings Report

Seagate Technology delivered a solid QQ1 2026 performance with revenue of $2.629 billion, up 13.1% year over year and 7.6% quarter over quarter. The company posted a gross profit of $1.037 billion, yielding a gross margin of 39.44%, and operating income of $707 million, for an operating margin of 26.89%. Net income reached $549 million, with diluted earnings per share of $2.43. EBITDA stood at $760 million, translating to an EBITDA margin of approximately 28.9%. Free cash flow (FCF) generated in the quarter was $427 million, supported by $532 million of net cash from operating activities and capital expenditures of $105 million.

Financial strength was underscored by a robust cash balance of about $1.11 billion and a net debt position of roughly $3.88 billion, against total liabilities of $8.51 billion and total assets of $8.44 billion. The company continued to allocate capital to shareholders, with $153 million in dividends paid and $29 million of net share repurchases, while investing $105 million in property, plant and equipment. Despite a strong quarter, Seagate’s balance sheet remains leveraged, with negative stockholders’ equity of $63 million and a debt load of nearly $5.0 billion, emphasizing the importance of ongoing cash generation and refinancing agility.

Looking ahead, management did not publish explicit forward guidance in the QQ1 2026 release. Investors should monitor data center and cloud storage demand, product mix evolution toward higher-margin SSDs and storage subsystems, supply chain dynamics, and the ability to sustain capital returns and deleveraging through free cash flow generation in a cyclical storage market.