Seagate Technology Holdings Plc

Strong Financial Performance: In the December quarter, Seagate reported revenue of $2.33 billion, a 7% sequential increase and a 50% year-over-year growth. Non-GAAP earnings per share (EPS) reached $2.03, marking a significant improvement as this was the first time in 12 quarters that EPS exceeded $2.

Increased Demand and Capacity Growth: The company experienced a nearly doubling of nearline product revenue on a year-over-year basis and a 60% growth in nearline revenue for the calendar year 2024, driven primarily by cloud demand. Seagate is ramping its 24-28 terabyte PMR platforms while advancing its HAMR (Heat-Assisted Magnetic Recording) technology, with announcements of sampling drives up to 36 terabytes.

Gross Margin Improvement: Non-GAAP gross margin expanded by over 200 basis points to 35.5%, with expectations for sequential improvement. Despite a forecasted revenue dip in March due to production constraints, gross margins are expected to remain strong, attributed to the higher capacity drives' favorable pricing and mix.