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Seagate Technology: What’s Driving the Push Toward 40TB Drives—and Why It Matters Now!

Seagate Technology reported strong financial results for its fiscal second quarter of 2026, exceeding expectations for revenue and profitability. The company achieved record exabyte shipments and improved its gross and operating margins significantly, with a notable increase in non-GAAP earnings per share. This performance was supported by strong demand from data center customers, particularly for high-capacity nearline drives, and the successful ramping of its HAMR (Heat-Assisted Magnetic Recording) technology. On the positive side, Seagate’s revenue grew by 22% year-over-year, reaching $2.83 billion. The company’s gross margin expanded to 42.2%, driven by an effective pricing strategy and a favorable product mix, specifically the higher capacity Mozaic HAMR drives. This technological advancement has positioned Seagate to address the growing demands of data centers, with exabyte shipments up 26% compared to the previous year.