📊 STX Key Takeaways
Is Seagate Technology Holdings plc (STX) a Good Investment?
Seagate demonstrates exceptional operational performance with 38.9% revenue growth and extraordinary 338.5% net income growth, supported by a strong 29.6% operating margin and $2.0B free cash flow generation. Leverage is elevated at 3.16x debt-to-equity, but robust interest coverage of 15.0x and operating fundamentals suggest the company can service debt while generating significant value.
Seagate’s latest fundamentals show a sharp cyclical earnings recovery, with revenue up 38.9%, net income up 338.5%, and strong operating and free cash flow generation. Profitability is robust, with 28.2% operating margin and 19.0% free cash flow margin, indicating the rebound is translating into real cash earnings. The main constraint is balance sheet risk, as leverage remains high and equity is very thin, which limits downside resilience if storage demand weakens again.
Seagate Technology Holdings plc Key Strengths (STX)
- Outstanding profitability: 29.6% operating margin and 22.1% net margin in capital-intensive hardware industry
- Exceptional growth trajectory: 38.9% YoY revenue growth and 338.5% net income growth demonstrates strong market demand
- Excellent cash generation: $2.0B free cash flow at 23.2% FCF margin provides debt reduction capacity
- Strong ROIC metrics: 172.6% ROE and 21.3% ROA indicate highly efficient capital deployment
- Solid debt servicing capability: 15.0x interest coverage despite high leverage
- Revenue, EPS, and net income are rebounding very strongly year over year, signaling meaningful operating momentum
- High operating margin and net margin show efficient conversion of sales into earnings
- Free cash flow generation is strong relative to revenue and capital spending needs remain manageable
STX Stock Risks: Seagate Technology Holdings plc Investment Risks
- Elevated leverage with 3.16x debt-to-equity ratio and $3.5B long-term debt relative to $1.1B equity base creates refinancing risk
- Liquidity concerns: Quick ratio of 0.85x below 1.0 and current ratio of 1.33x indicate potential short-term funding pressure
- Earnings growth sustainability uncertain: 338.5% YoY increase likely driven by cyclical demand surge that may normalize
- Hardware industry cyclicality and technological disruption risks to long-term demand
- Very high debt-to-equity and low absolute equity create elevated financial leverage risk
- Quick ratio below 1.0 suggests tighter near-term liquidity outside of inventory
- Current profitability may reflect a cyclical upturn and could reverse if storage demand softens
Key Metrics to Watch
- Operating margin trend and gross margin sustainability amid competitive pressures
- Free cash flow generation and debt reduction pace relative to leverage targets
- Revenue growth normalization and cyclical demand indicators in storage markets
- Liquidity position and working capital management to address quick ratio concerns
- Free cash flow and operating cash flow consistency
- Debt reduction, interest coverage, and equity base improvement
Seagate Technology Holdings plc (STX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 23.2% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
STX Profit Margin, ROE & Profitability Analysis
STX vs Technology Sector: How Seagate Technology Holdings plc Compares
How Seagate Technology Holdings plc compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Seagate Technology Holdings plc Stock Overvalued? STX Valuation Analysis 2026
Based on fundamental analysis, Seagate Technology Holdings plc has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Seagate Technology Holdings plc Balance Sheet: STX Debt, Cash & Liquidity
STX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Seagate Technology Holdings plc's revenue has declined by 15% over the 5-year period, indicating business contraction. The most recent EPS of $-2.56 indicates the company is currently unprofitable.
STX Revenue Growth, EPS Growth & YoY Performance
STX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $2.2B | $340.0M | $1.57 |
| Q2 2026 | $2.3B | $336.0M | $1.55 |
| Q1 2026 | $2.2B | $305.0M | $1.41 |
| Q3 2025 | $1.7B | $25.0M | $0.12 |
| Q2 2025 | $1.6B | -$19.0M | $-0.09 |
| Q1 2025 | $1.5B | -$184.0M | $-0.88 |
| Q3 2024 | $1.7B | $25.0M | $0.12 |
| Q2 2024 | $1.6B | -$4.0M | $-0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Seagate Technology Holdings plc Dividends, Buybacks & Capital Allocation
STX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Seagate Technology Holdings plc (CIK: 0001137789)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Jun 4, 2026 | 4 | xslF345X06/wk-form4_1780606766.xml | View → |
| Jun 2, 2026 | 4 | xslF345X06/wk-form4_1780435025.xml | View → |
| Jun 2, 2026 | 4 | xslF345X06/wk-form4_1780435017.xml | View → |
| Jun 2, 2026 | 4 | xslF345X06/wk-form4_1780435008.xml | View → |
| Jun 2, 2026 | 4 | xslF345X06/wk-form4_1780435000.xml | View → |
❓ Frequently Asked Questions about STX
What is the AI rating for STX?
Seagate Technology Holdings plc (STX) has a Combined AI Grade of A from Claude (A) and ChatGPT (A) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are STX's key strengths?
Claude: Outstanding profitability: 29.6% operating margin and 22.1% net margin in capital-intensive hardware industry. Exceptional growth trajectory: 38.9% YoY revenue growth and 338.5% net income growth demonstrates strong market demand. ChatGPT: Revenue, EPS, and net income are rebounding very strongly year over year, signaling meaningful operating momentum. High operating margin and net margin show efficient conversion of sales into earnings.
What are the risks of investing in STX?
Claude: Elevated leverage with 3.16x debt-to-equity ratio and $3.5B long-term debt relative to $1.1B equity base creates refinancing risk. Liquidity concerns: Quick ratio of 0.85x below 1.0 and current ratio of 1.33x indicate potential short-term funding pressure. ChatGPT: Very high debt-to-equity and low absolute equity create elevated financial leverage risk. Quick ratio below 1.0 suggests tighter near-term liquidity outside of inventory.
What is STX's revenue and growth?
Seagate Technology Holdings plc reported revenue of $8.6B.
Does STX pay dividends?
Seagate Technology Holdings plc pays dividends, with $468.0M distributed to shareholders in the trailing twelve months.
Where can I find STX SEC filings?
Official SEC filings for Seagate Technology Holdings plc (CIK: 0001137789) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is STX's EPS?
Seagate Technology Holdings plc has a diluted EPS of $8.29.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is STX's fundamental grade?
Based on our AI fundamental analysis in June 2026, Seagate Technology Holdings plc has a A grade with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is STX stock overvalued or undervalued?
Valuation metrics for STX: ROE of 172.6% (sector avg: 22%), net margin of 22.1% (sector avg: 18%). Higher ROE suggests strong returns relative to peers.
What is STX's AI grade for 2026?
Our dual AI analysis gives Seagate Technology Holdings plc a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is STX's free cash flow?
Seagate Technology Holdings plc's operating cash flow is $2.4B, with capital expenditures of $382.0M. FCF margin is 23.2%.
How does STX compare to other Technology stocks?
Vs Technology sector averages: Net margin 22.1% (avg: 18%), ROE 172.6% (avg: 22%), current ratio 1.33 (avg: 2.5).
Is Seagate Technology Holdings plc carrying too much debt?
STX has a debt-to-equity ratio of 3.16x, which is above the Technology sector average of 0.5x. However, the current ratio of 1.33 suggests adequate short-term liquidity.
Why is STX's return on equity (ROE) so high?
Seagate Technology Holdings plc has a return on equity of 172.6%, significantly above the Technology sector average of 22%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 22.1% net margin.