📊 STX Key Takeaways
Is Seagate Technology Holdings plc (STX) a Good Investment?
Seagate demonstrates exceptional profitability with 20.9% net margins and 28.2% operating margins, coupled with strong revenue growth of 38.9% YoY and substantial earnings expansion (338.5% net income growth). However, the extreme leverage (7.63x debt-to-equity) and modest stockholders' equity of $459M create significant financial risk despite healthy free cash flow generation of $1.0B.
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.
Why Buy Seagate Technology Holdings plc Stock? STX Key Strengths
- Exceptional net income growth of 338.5% YoY indicating strong operational execution
- Robust free cash flow of $1.0B with 19% FCF margin providing debt service capacity
- Strong revenue growth of 38.9% YoY suggesting healthy demand in storage devices market
- Healthy operating margin of 28.2% and net margin of 20.9% demonstrating pricing power
- Interest coverage ratio of 9.1x indicates adequate ability to service debt obligations
- 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
- Extremely high leverage with 7.63x debt-to-equity ratio and total liabilities exceeding total assets significantly
- Stockholders' equity of only $459M is dangerously low relative to $3.5B long-term debt, creating solvency concerns
- Quick ratio of 0.72x indicates potential short-term liquidity constraints if operations deteriorate
- Gross margin data unavailable, limiting visibility into cost structure and pricing sustainability
- High leverage amplifies downside risk if storage market demand weakens or competitive pressures intensify
- 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
- Free cash flow sustainability and ability to reduce net debt levels
- Revenue growth trajectory and gross margin trends in upcoming quarters
- Debt-to-equity ratio movement and progress toward deleveraging
- Operating cash flow consistency and working capital management
- Storage device market demand indicators and competitive positioning
- 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
Seagate Technology Holdings plc presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
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 |
|---|---|---|---|
| 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 |
| Q1 2024 | $1.5B | $29.0M | $0.14 |
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 |
|---|---|---|---|
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775163217.xml | View → |
| Mar 23, 2026 | 4 | xslF345X06/wk-form4_1774297204.xml | View → |
| Mar 16, 2026 | 4 | xslF345X05/wk-form4_1773693032.xml | View → |
| Mar 12, 2026 | 4 | xslF345X05/wk-form4_1773346309.xml | View → |
| Mar 12, 2026 | 4 | xslF345X05/wk-form4_1773346299.xml | View → |
❓ Frequently Asked Questions about STX
What is the AI rating for STX?
Seagate Technology Holdings plc (STX) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are STX's key strengths?
Claude: Exceptional net income growth of 338.5% YoY indicating strong operational execution. Robust free cash flow of $1.0B with 19% FCF margin providing debt service capacity. 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: Extremely high leverage with 7.63x debt-to-equity ratio and total liabilities exceeding total assets significantly. Stockholders' equity of only $459M is dangerously low relative to $3.5B long-term debt, creating solvency concerns. 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 $5.5B.
Does STX pay dividends?
Seagate Technology Holdings plc pays dividends, with $307.0M 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 $5.03.
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 rating reflects both perspectives for balanced insights.
Is STX a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Seagate Technology Holdings plc has a BUY rating with 74% 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 248.8% (sector avg: 22%), net margin of 20.9% (sector avg: 18%). Higher ROE suggests strong returns relative to peers.
Should I buy STX stock in 2026?
Our dual AI analysis gives Seagate Technology Holdings plc a combined BUY rating 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 $1.3B, with capital expenditures of $221.0M. FCF margin is 19.0%.
How does STX compare to other Technology stocks?
Vs Technology sector averages: Net margin 20.9% (avg: 18%), ROE 248.8% (avg: 22%), current ratio 1.12 (avg: 2.5).
Is Seagate Technology Holdings plc carrying too much debt?
STX has a debt-to-equity ratio of 7.63x, which is above the Technology sector average of 0.5x. However, the current ratio of 1.12 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 248.8%, 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 20.9% net margin.