STX · 10-K · 2026A · Full report

Supply Chain Constraints

Seagate Technology Holdings plc · 2026-08-04 · Importance 64 · Surprise 42

Seagate had approximately $2.1 billion of unconditional purchase obligations with suppliers as of July 3, 2026, primarily for inventory components. Approximately $1.6 billion of these commitments was expected to be paid within one year, and the company also had long-term, market-share-based non-cancellable inventory purchase commitments. Seagate uses long-term, non-cancellable commitments and upfront supplier investments to secure components and technologies or supplement internal manufacturing capacity for certain components. Fiscal 2026 work-in-process inventory increased by $131 million, indicating additional production inventory supporting higher demand and volume ramp.

Key facts