STX Seagate Technology Holdings plc

Overview and Growth

Seagate Technology Holdings plc generated $12.20B of revenue in fiscal 2026, with net income of $3.18B and an operating cash inflow of $3.67B. At $12.20B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Revenue was 34.1% above fiscal 2025 revenue of $9.10B, marking a year-over-year increase. On a per-share basis, diluted EPS was $13.90, which connects the reported earnings outcome with the company’s diluted share count. Against diluted EPS of $6.77 in fiscal 2025, the current result was 105.3% higher. The revenue-to-assets relationship was 1.22x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

After reported cost of revenue, the company retained $5.56B as gross profit before recognizing operating expenses and other items. Gross profit represented 45.6% of revenue, showing how much of the top line remained after direct costs. The reported operating result was $4.09B, capturing profitability after direct costs and the operating expenses reflected in the statements. Relative to revenue, operating income represented 33.6%, showing how efficiently sales converted into operating profit. Net income came to $3.18B, completing the progression from revenue through gross and operating profitability to the final reported result. The final earnings result represented 26.1% of revenue, connecting the absolute net income figure with the company’s top-line scale. The earnings statement records $3.69B of pretax income, the profit base against which the reported tax provision can be assessed. Measured against revenue, pretax income equaled 30.3%, adding a pre-tax profitability layer between revenue and net income. The reported income-tax provision was $506.00M, the amount recognized between pretax income and the final net-income result. The effective relationship between income tax and positive pretax income was 13.7%, without assuming a statutory-rate comparison.

Liquidity and Capital Structure

The company held $9.97B of assets against $7.80B of liabilities and $2.17B of equity, revealing how the asset base was financed. At period end, current assets of $5.22B compared with current liabilities of $3.13B, defining the company’s short-term resource position. At 1.67x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. Cash and equivalents totaled $1.70B, identifying the most liquid reported component available within the broader current-asset balance. Cash and equivalents represented 54.5% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Total debt was $3.56B, establishing the amount of borrowing carried within the company’s capital structure. Debt equaled 1.65x of book equity, describing the relative scale of borrowing and shareholder capital. The debt-to-assets relationship was 35.8%, comparing borrowing with the total asset balance. Liabilities represented 78.3% of total assets, quantifying the liability-funded share of the company’s resource base. Cash and equivalents equaled 17.1% of total assets, showing the liquid cash component within the company’s broader resource base.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $3.67B, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Operating cash flow equaled 1.15x of net income, showing how strongly accounting earnings converted into cash from operations. Capital expenditures used $569.00M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital spending absorbed 15.5% of operating cash flow, quantifying the share of cash from operations directed to investment. After capital spending, free cash flow was $3.10B, leaving cash available for debt reduction, shareholder returns, or further investment. Relative to revenue, free cash flow equaled 25.5%, showing how much sales converted into cash after investment. Free cash flow equaled 31.1% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Jul 3, 2026. Analysis generated Oct 21, 2026.