Seagate at Goldman Sachs conference: hamr drives margin gains

On 10 September 2026, Seagate Technology presented its business at the Goldman Sachs Communacopia + Technology Conference, highlighting gains from early AI infrastructure spending, higher pricing, and a shift to larger-capacity drives. CFO Gianluca Romano acknowledged supply-demand challenges, dangers including power restrictions, permit postponements, and component deficits.

Despite a 2.98% decline in stock to $859.5, Romano emphasized improved margins, visible revenue, and a technology roadmap that excludes older products at the high end. Seagate has experienced a 363% return over the past year and 222% gain year-to-date, though the stock is currently above its InvestingPro Fair Value. The company's focus shifted from unit growth to exabyte growth, with HAMR technology driving higher capacity without a parallel increase in drive shipments.

Pricing has improved significantly, with an 11% year-over-year growth in price per exabyte in the latest quarter. Incremental gross margins have exceeded 70%, surpassing Seagate's earlier 50% goal. Debt reduction is nearly complete, with share repurchases expected to increase in 2027. Romano attributed the company's recent performance to faster exabyte demand from AI and data center buildouts, capacity gains from technology like HAMR, and higher pricing reflecting storage's growing value in customer systems.

In the last twelve months, revenue surged 34% to $12.2 billion, with a 45.6% gross profit margin. The company's P/E ratio of 61.76 and PEG ratio of 0.6 indicate strong growth expectations, with 16 analysts revising earnings upward for the upcoming period. Seagate has moved away from unit growth to exabyte growth, with 30 terabyte HAMR drives being shipped to major hyperscalers and 40 terabyte HAMR drives being shipped to the two largest hyperscalers.

Seagate aims to have 50 terabyte capacity ready by calendar 2027, with HAMR accounting for 80% to 90% of its data center volume within two years.