Seagate Reports Strong Q2 Growth

By Patricia Miller

Jan 22, 2025

1 min read

Seagate's fiscal Q2 2025 reveals significant revenue growth, improved earnings, and a commitment to innovation, making it a compelling option for retail investors.

Seagate Tech

What You Need To Know

Seagate Technology demonstrated impressive growth in its fiscal Q2 2025, with revenue increasing to $2.33 billion compared to $1.56 billion in the same quarter last year. Non-GAAP earnings per share rose significantly to $2.03 from $0.12, while gross margins saw an upturn to 35.5%. The company generated $221 million in operating cash flow and distributed $148 million in dividends to shareholders.

Seagate is also making strides with its heat-assisted magnetic recording (HAMR) Mozaic products, which offer capacities reaching 36 terabytes, aimed at meeting the rising demand from artificial intelligence applications.

For fiscal Q3 2025, Seagate forecasts expected revenue of approximately $2.10 billion, along with a non-GAAP EPS estimate of $1.70. A dividend of $0.72 per share has been announced, set for distribution on April 2, 2025. Overall, Seagate's robust performance highlights its commitment to growth in the data storage sector and sustainable storage solutions.

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Why This Is Important for Retail Investors

  1. Strong Growth Trends: Significant revenue and EPS improvements highlight Seagate’s profitability and operational momentum.

  2. Attractive Dividends: A dividend ensures steady income for shareholders.

  3. AI and Cloud Leadership: Investment in cutting-edge storage technology positions Seagate to capitalize on high-growth markets like AI and cloud computing.

  4. Improved Margins: Rising gross margins reflect better cost control and long-term value creation.

  5. Shareholder Commitment: Returning $148 million to shareholders demonstrates a focus on investor returns.

Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Patricia Miller does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.

Patricia Miller has not been paid to produce this piece by the company or companies mentioned above.

Digitonic Ltd, the owner of ValueTheMarkets.com, does not hold a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.

Digitonic Ltd, the owner of ValueTheMarkets.com, has not been paid for the production of this piece by the company or companies mentioned above.