Seagate Tech | 10-K: FY2025 Revenue Beats Estimate at USD 9.097 B

Revenue: As of FY2025, the actual value is USD 9.097 B, beating the estimate of USD 9.071 B.

EPS: As of FY2025, the actual value is USD 6.77, beating the estimate of USD 6.6163.

EBIT: As of FY2025, the actual value is USD 1.89 B.

Revenue

• Total Revenue: $9,097 million for fiscal year 2025, an increase from $6,551 million in fiscal year 2024, primarily due to higher demand for nearline cloud products and favorable pricing actions.

Cost of Revenue and Gross Margin

• Cost of Revenue: $5,897 million for fiscal year 2025, up from $5,015 million in fiscal year 2024.
• Gross Margin: 35% for fiscal year 2025, up from 23% in fiscal year 2024, driven by favorable product mix, pricing actions, and a decrease in supply-related purchase order cancellation fees.

Operating Expenses

• Product Development: $724 million for fiscal year 2025, up from $654 million in fiscal year 2024, primarily due to increased compensation and other employee benefits.
• Marketing and Administrative: $561 million for fiscal year 2025, up from $460 million in fiscal year 2024, primarily due to increased compensation and other employee benefits.
• Restructuring and Other, net: $25 million charge for fiscal year 2025, compared to a $30 million benefit in fiscal year 2024.

Other Expense, net

• Other Expense, net: $377 million for fiscal year 2025, primarily related to interest expense and loss on investments.

Income Taxes

• Provision for Income Taxes: $44 million for fiscal year 2025, down from $110 million in fiscal year 2024.

Net Income

• Net Income: $1,469 million for fiscal year 2025, up from $335 million in fiscal year 2024.

Cash Flow

• Operating Cash Flow: $1,083 million for fiscal year 2025, up from $918 million in fiscal year 2024.
• Investing Activities: Net cash used was $276 million for fiscal year 2025, primarily due to purchases of property, equipment, and leasehold improvements.
• Financing Activities: Net cash used was $1,274 million for fiscal year 2025, primarily due to repurchases of long-term debt and dividend payments.

Outlook / Guidance

• The company expects to benefit from future growth in data demand and data value, including from the adoption of Generative AI applications.