Seagate posts record adjusted earnings per share as data-center storage demand strengthens

Seagate reported fiscal first-quarter 2027 results on October 27, covering the quarter ended October 2, 2026. Revenue rose 61% from a year earlier to $4.2 billion, while non-GAAP earnings per share, calculated using the company’s adjustments to standard accounting results, reached a record $7.68, versus $2.61 a year earlier and analysts’ consensus estimate of $7.44.^[1][2][3]

Seagate makes hard drives for storing large amounts of data. Coverage linked continued demand for its storage products to the artificial-intelligence infrastructure build-out; the company said profitability and free cash flow—cash from operations left after capital spending—both reached records.^[4][1]

This demand reaches Seagate’s core business directly: data-center customers accounted for 90% of shipped storage capacity. Coverage also said most of its nearline drive supply—high-capacity hard drives used in data centers—was allocated under supply agreements through calendar 2028. Customers reserving supply ahead of time help Seagate plan production and make future sales more visible.^[5]

Stronger demand and favorable pricing have already helped expand Seagate’s profit margins. For storage manufacturers, that shows data-center spending reaching hardware suppliers’ earnings; for cloud companies buying drives, it makes securing supply early more important and may leave less purchasing flexibility later. Whether other drive makers capture similar benefits depends on their products, capacity and customer agreements.^[6][5]

Impact