Seagate FY27 Q1: revenue up 61.0%, gross margin 57.3%, EPS $7.59
Seagate's fiscal first quarter was a blowout: revenue rose 61.0% to $4.23 billion, gross margin hit 57.3%, non-GAAP EPS of $7.68 beat the $7.4926 consensus, and free cash flow reached $1.48 billion. The view is Bullish. Read the quarter in three steps: where the margin came from, what guidance implies for the next one, and how the balance sheet was rebuilt while cash was returned.
1 · Expected vs. Actual
Free preview belowGAAP EPS was $7.59 and non-GAAP $7.68, versus a $7.4926 consensus — a beat of roughly $0.19, or 2.5%. The GAAP-to-non-GAAP bridge is small but odd in composition: $0.33 of share-based compensation and $0.19 of debt-transaction losses are almost fully offset by a $0.46 tax adjustment. Net income of $1.76 billion was 41.6% of revenue.
Revenue was $4.23 billion against $2.63 billion a year earlier, up 61.0%. Cost of revenue rose only 13.4% over the same stretch, to $1.81 billion, so most of the extra revenue fell straight through to gross profit. That gap, not volume alone, is the whole story of the 57.3% gross margin.
Management guides fiscal Q2 to $4.8 billion of revenue, plus or minus $100 million, and non-GAAP EPS of $9.20, plus or minus $0.20. The revenue midpoint is 13.4% above the quarter just reported, and the EPS midpoint is 19.8% above the $7.68 just delivered. That assumes the margin story continues, not just unit growth.
Log in to read 35 analyses a week for free
Create a free account to read 35 full earnings analyses each week — all five steps: expected vs. actual, guidance tracker, money flow, balance sheet and risks. Members get unlimited access.
Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-11-03
Answers are based on the earnings release and the analysis above. Free accounts get 3 questions a week; members get 30 a day.