Seagate Technology Goes All-In on HAMR – Will 40TB Drives Change Everything?

Seagate Technology recently reported its fiscal first-quarter 2026 results, showcasing a strong start to the year marked by notable financial performance and strategic advancements. Positively, Seagate reported a year-over-year revenue growth of 21%, reaching $2.63 billion. Non-GAAP gross margin reached a new record for the company at 40.1%, with operating margins climbing to 29%. Non-GAAP earnings per share (EPS) exceeded the high end of the guidance range, underscoring the company’s focus on enhancing profitability. The demand for high-capacity storage solutions played a crucial role in driving growth, particularly from global cloud service providers and enterprise customers. The data center market, comprised of nearline sales to cloud, enterprise, and VIA customers, contributed 80% of total revenue, reflecting the rising need for efficient, high-capacity storage solutions. Seagate is capitalizing on this demand through longer-term contracts with data center customers, which provide clear visibility through calendar 2027.