STX · 10-K · 2026A · Full report

Gross Margin Drivers

Seagate Technology Holdings plc · 2026-08-04 · Importance 69 · Surprise 64

Gross profit increased $2.358 billion to $5.558 billion in fiscal 2026 from $3.200 billion in fiscal 2025. Gross margin increased 11 percentage points year over year to 46%. The improvement was primarily driven by pricing actions and a product mix shift toward higher-capacity products.

Key facts

• Cost of revenue for fiscal year 2026 was $6,637 million and for fiscal year 2025 was $5,897 million. source
• Gross profit for fiscal year 2026 was $5,558 million and for fiscal year 2025 was $3,200 million. source
• For fiscal year 2026, gross margin increased by 11 percentage points compared to the prior fiscal year primarily driven by pricing actions and product mix shift to higher capacity products. source
• Gross margin was 46% in fiscal year 2026. source