Seagate Delivers Strong Q3 Performance: 31% Revenue Growth and Record Operating Margin
Seagate Technology has announced its fiscal third quarter 2025 results, showcasing another solid quarter of profitable year-on-year growth and strong execution. The company's revenue grew by a remarkable 31% compared to the same period last year, with non-GAAP gross profit dollars increasing by 81%. This impressive performance was driven by a healthy supply-demand environment for mass capacity storage, as well as Seagate's proactive efforts to transform its operations.
"We've delivered another solid quarter of profitable growth and strong execution," said Dave Mosley, Chief Executive Officer of Seagate. "Our focus on supply discipline, build-to-order strategy, and strategic pricing actions have contributed to sustainable and profitable growth over the long term."
Seagate's operating model has been further strengthened by its ability to navigate the fluid business environment with agility. The company continues to monitor trade policy announcements and evaluate strategic solutions, including geographically shifting manufacturing processes and aligning supply chains to mitigate risks associated with trade policies.
The demand environment remains intact, particularly among global cloud customers, who have shown a significant increase in nearline revenue and exabytes. Cloud CapEx investment cycle and ongoing build-out of data center infrastructure are driving the growing demand for mass capacity storage, which aligns with Seagate's strategic road map. Hard drives continue to store close to 90% of the bits in large-scale data center deployments.
Seagate's innovative technology products, such as HAMR-based Mozaic drives, have gained significant traction in the market. These drives represent the industry's only 3 terabyte per disk products and are being ramped up to qualified customers. The company remains on track to qualify a broader range of cloud customers with shipments beginning in the second half of calendar 2025.
Seagate's focus on executing its aerial density-driven technology road map has delivered increasing value to its customers, further solidifying the company's position as a leader in the storage industry. With minimal impact expected from tariffs on fourth quarter financial performance, Seagate is well-positioned for continued growth and success in this dynamic macro landscape.
