Seagate Technology has already completed the third quarter of fiscal year 2025. The past period was successful for the company in terms of revenue growth dynamics and product shipments. Revenue increased by 31% year-on-year to $2.16 billion, and hard drive shipments in capacity terms increased by 45% to 143.6 exabytes.
Image source: Seagate Technology
Like other market participants, Seagate Technology has stopped publishing statistics on the number of hard drives shipped, since high-capacity drives accounted for 87% of its revenue last quarter and were not that numerous in terms of units. In the server segment, the gross capacity of drives shipped in the last quarter increased by 50% to 55%, depending on the product category. In the classic hard drive segment, gross capacity increased by 1% to 10.7 exabytes. In a sequential comparison, the capacity of drives shipped decreased by 5%, but this is explained by seasonal trends in demand.
The average specific capacity of a shipped Seagate hard drive increased by 44% year-on-year to 12.6 TB in the quarter, and increased by 8% sequentially. It is noteworthy that in the server segment, the figure increased by only 30% to 16.2 TB, while in the classic segment, it increased by 34% to 3.3 TB.
Revenue from shipments of hard drives increased by 36% to $2 billion in the quarter, while solid-state drives and ready-made data storage systems accounted for only $157 million. This is 11% less than it received a year earlier. Seagate’s largest revenue last quarter came from shipments of 24 TB (CMR) and 28 TB (SMR) server hard drives. In the second half of the current calendar year, it plans to begin shipping hard drives with heated magnetic recording technology to new customers. The HAMR drive family with Mozaic 3+ technology provides storage of up to 3 TB of information on a single magnetic plate, which none of Seagate’s competitors can boast of. The company is already supplying such hard drives to two large cloud customers. In the current quarter, Seagate expects to earn up to $2.4 billion on average, which exceeds analysts’ expectations. The company’s shares rose in price by 6% after the close of the trading session in the US.