Seagate Technology, a global leader in data storage solutions, reported a 21 percent revenue increase in its fiscal first quarter ended October 3, 2025 — a surge powered by the accelerating adoption of artificial intelligence (AI) and strong demand from the data center market.
AI Fueling Data Center Storage Demand
AI workloads, particularly generative AI (GenAI) and AI inferencing, are driving data creation, requiring massive, scalable storage capacity. Seagate’s high-capacity nearline hard drives are playing a critical role in storing, monitoring, validating, and reintegrating vast datasets into AI training loops.
Seagate Technology’s data center revenue grew 34 percent to $2.1 billion, now contributing 80 percent of total revenue.
Nearline production is largely committed through 2026, underscoring long-term demand from global cloud providers.
Seagate Technology’s Edge IoT revenue reached $515 million, now contributing 20 percent of total revenue.
AI-Centric Product Innovation: Mozaic HAMR Drives
Seagate’s next-generation Mozaic HAMR (Heat-Assisted Magnetic Recording) drives are central to its AI-driven growth strategy. These drives deliver unmatched areal density and capacity, critical for handling the massive datasets used in AI training and deployment.
Over 1 million Mozaic HAMR drives were shipped in the September quarter.
The Mozaic 3+ platform is qualified with five of the world’s largest cloud service providers (CSPs), with more qualifications expected by mid-2026.
The upcoming Mozaic 4+ drives, supporting up to 44TB capacity, will serve both hyperscale cloud and edge workloads — key infrastructure for AI applications.
Strong Financial Performance Driven by AI Demand
AI adoption has directly translated into record profitability for Seagate:
Revenue: $2.63 billion
Gross margin: 40.1 percent, up 680 basis points
Operating margin: 29.0 percent, up 860 basis points
EPS exceeded guidance, reflecting stronger pricing and efficiency gains from AI-related product demand.
AI’s Ripple Effect on Broader Market Segments
Beyond hyperscale data centers, AI is reshaping consumer electronics and edge computing. As AI capabilities are increasingly integrated into devices like PCs and smartphones, storage needs have surged. Seagate’s broad portfolio — spanning from high-capacity enterprise drives to edge-optimized solutions — positions it to capture this expanding market.
Outlook: Sustained AI Momentum
Looking ahead, Seagate forecasts second-quarter revenue of $2.7 billion (±$100 million) and adjusted EPS of about $2.75.
CEO Dave Mosley said: “AI is transforming how content is consumed and generated, increasing the value of data and storage.” With Mozaic HAMR technology and deep cloud partnerships, Seagate is well-positioned for continued profitable growth in the AI era.
Seagate’s AI-driven transformation is fueling record financial performance, advancing product innovation, and securing long-term contracts with leading cloud providers. By powering the data backbone of AI, Seagate has cemented its role as a key enabler of the global AI infrastructure ecosystem.
Rajani Baburajan
