Seagate Technology announced its fiscal second quarter 2026 financial results, exceeding expectations. The company reported record-breaking gross margin, operating margin, and non-GAAP EPS. According to CEO Dave Mosley, the strong performance reflects solid operational execution and robust demand from data centers. The company also highlighted the ongoing ramp-up of its HAMR-based Mozaic products.

Seagate's positive results come amid increasing demand for high-capacity storage, driven by the growth of AI applications. Modern data centers require storage solutions that balance performance and cost-efficiency. HAMR (Heat-Assisted Magnetic Recording) technology is crucial for achieving higher storage densities. Seagate is positioning itself to capitalize on this expanding market.

During the quarter, Seagate generated $723 million in cash flow from operations and $607 million in free cash flow. The company also announced a quarterly cash dividend of $0.74 per share. Seagate's outlook for the fiscal third quarter of 2026 includes revenue of $2.90 billion, plus or minus $100 million.

Investors will be watching Seagate's continued progress in the data storage market, especially with its HAMR technology. The company's ability to maintain these margins and meet the growing demand for storage will be key factors. Management will hold a public webcast on January 27, 2026, to discuss the results further.