STX · 10-Q · 2026Q4 · Full report

Gross Margin Drivers

Seagate Technology Holdings plc · 2026-10-29 · Importance 58 · Surprise 56

Gross margin was 57.3% in the September 2026 quarter, an increase of 5 percentage points sequentially and 18 percentage points year over year. Sequential improvement was primarily driven by pricing actions, partially offset by higher external component costs. Year-over-year improvement reflected pricing actions and a product mix shift to higher-capacity products.

Key facts

• Seagate's gross margin increased by 18 percentage points in the September 2026 quarter compared with the September 2025 quarter, primarily due to pricing actions and a product-mix shift to higher-capacity products. source
• Seagate's gross margin increased by 5 percentage points in the September 2026 quarter compared with the June 2026 quarter, primarily due to pricing actions, partially offset by higher external component costs. source
• Seagate's gross margin was 57.3% in the September 2026 quarter. source