STX · 10-K · 2026A · Full report

Operating Expense Trends

Seagate Technology Holdings plc · 2026-08-04 · Importance 49 · Surprise 22 · From source text

Total operating expenses increased $154 million to $1.464 billion in fiscal 2026 from $1.310 billion in fiscal 2025. Product development expense increased $31 million, including $22 million of higher outside-services costs, $7 million of higher compensation and benefits, and $7 million of higher facilities costs, partly offset by an $8 million reduction in material expenses. Marketing and administrative expense increased $16 million, including $11 million of higher compensation and benefits and $5 million of higher information-technology costs.

Key facts

• Income from operations was $4,094 million in fiscal year 2026 and $1,890 million in fiscal year 2025. source
• Other expense, net for fiscal year 2026 primarily related to $284 million of interest expense, $151 million of net loss from debt transactions, partially offset by $30 million of interest income. source
• Other expense, net for fiscal year 2025 primarily related to $321 million of interest expense and $53 million loss on investments. source
• Other expense, net was $(404) million in fiscal year 2026 and $(377) million in fiscal year 2025. source
• In fiscal year 2026, we recorded $27 million of restructuring charges, primarily related to employee related termination benefits. source
• In fiscal year 2025, we recorded $25 million of restructuring charges in Operating expenses, primarily related to employee related termination benefits and ROU asset impairment charges. source
• $119 million taxes were paid related to net share settlement of equity awards in fiscal year 2026. source
• Product development expenses for fiscal year 2026 increased by $31 million from fiscal year 2025 primarily due to a $22 million increase in outside services costs, a $7 million increase in compensation and other employee benefits and a $7 million increase in facilities costs, partially offset by an $8 million decrease in material expenses. source

Impact estimates