Seagate Forecasts $2.4 Billion Revenue Amid Cloud Demand Surge

Published 2 hours agoSTX

Seagate Forecasts $2.4 Billion Revenue Amid Cloud Demand Surge

Seagate Technology Holdings has projected a promising revenue of $2.4 billion for the fourth quarter of fiscal year 2025, citing a substantial increase in demand from the cloud sector. This projection is part of Seagate's broader strategy to ramp up its cutting-edge Heat-Assisted Magnetic Recording (HAMR) technology, which is expected to enhance storage capacities and profit margins as it targets mass production by mid-2025.

Seagate is ambitiously qualifying its HAMR-based drives, including the Mozaic 3+ platform, to meet this demand. The company has also made progress in qualifying its 24TB Conventional Magnetic Recording (CMR) and 28TB Shingled Magnetic Recording (SMR) drives, with plans for volume shipments in the early fiscal 2025. Reuters highlighted that the company's focus on these technological advancements aligns with the increasing needs of cloud service providers for mass storage solutions.

Amid these efforts, Seagate reported notable financial performance in the fiscal first quarter of 2025, with revenue climbing to $2.17 billion—a 14% increase from the previous quarter—accompanied by a non-GAAP gross margin of 33.3%. This development underlines Seagate's strategic push towards securing a strong position in the evolving digital storage market by capitalizing on the growing demand for data capacity solutions.

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