Seagate Technology CFO Sees Nearline Demand Above Supply, Sticks With Steady Price Hikes

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MarketBeat

Sun, March 1, 2026 astatine 5:33 PM CST 6 min read

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Demand supra supply: Seagate says it is selling each the exabytes it produces and expects nearline exabyte maturation of astir a mid-20s % CAGR, portion sticking to a argumentation of steady, humble terms increases to thrust adoption of higher-capacity drives and support mean $/TB “flat to somewhat up.”
HAMR ramp and outgo improvement: More than 20% of Seagate’s nearline exabytes were HAMR (Mozaic 3+) past quarter, the institution is qualifying Mozaic 4+ with ample unreality customers and expects meaningful cost-per-terabyte declines opening with the 40TB procreation and larger measurement ramps aboriginal successful the year.
Capacity strategy and superior returns: Seagate’s factories are “full” and it volition turn exabytes via higher-capacity drives (SMR stock rising) alternatively than portion volume, portion continuing borderline improvement, cutting indebtedness (from >$6B to < $4B) and targeting >75% of escaped currency travel returned to shareholders.
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Seagate Technology (NASDAQ:STX) CFO Gianluca Romano told investors astatine a Bernstein lawsuit that the company’s outlook for nearline hard disk thrust request remains broadly aligned with manufacture expectations, portion Seagate continues to execute a pricing strategy aimed astatine improving profitability and encouraging adoption of higher-capacity drives.

Romano said Seagate mostly agrees with a “mid-20s” nearline exabyte compound yearly maturation complaint outlook implicit a multi-year period, noting the institution presented a akin forecast astatine its capitalist time successful May of past year. He emphasized that year-to-year maturation tin vary, and that existent manufacture shipments bespeak proviso much than demand.

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“Demand is higher,” Romano said, adding that Seagate is selling each the exabytes it produces. He besides said Seagate expects to summation exabytes astatine astir a 25% CAGR implicit the adjacent 3 to 4 years, supported by merchandise premix shifts to higher capacities and improvements successful yields implicit time.

Romano said Seagate is not changing its pricing strategy, which helium described arsenic accordant implicit astir 3 years. He said that erstwhile contracts are renegotiated, Seagate typically implements “a small spot of terms increase,” with the extremity of pushing customers toward the newest products and driving higher exabytes without expanding portion output.

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