STX · 10-Q · 2026Q4 · Full report

Operating Expense Trends

Seagate Technology Holdings plc · 2026-10-29 · Importance 18 · Surprise 14

Product development expense increased $12 million sequentially, including increases of $6 million in compensation and benefits, $3 million in materials, and $2 million in facilities costs. Year over year, product development expense rose $14 million, driven by $8 million more in compensation and benefits and $6 million more in outside services. Marketing and administrative expense increased $12 million sequentially and $15 million year over year, primarily reflecting compensation and benefits increases of $19 million and $21 million, respectively, partly offset by lower outside services. Restructuring charges were $4 million in September 2026, compared with $4 million in June 2026 and $13 million in September 2025, primarily for employee termination benefits.

Key facts

• Seagate's product development expenses increased by $12 million in the September 2026 quarter compared with the June 2026 quarter, primarily due to $6 million more in compensation and employee benefits, $3 million more in material expenses, and $2 million more in facilities costs. source
• Seagate's product development expenses increased by $14 million in the September 2026 quarter compared with the September 2025 quarter, primarily due to $8 million more in compensation and employee benefits and $6 million more in outside services costs. source
• Seagate's marketing and administrative expenses increased by $12 million in the September 2026 quarter compared with the June 2026 quarter, primarily due to $19 million more in compensation and employee benefits, partially offset by $4 million less in outside services costs. source
• Seagate's marketing and administrative expenses increased by $15 million in the September 2026 quarter compared with the September 2025 quarter, primarily due to $21 million more in compensation and employee benefits, partially offset by $5 million less in outside services costs. source
• Seagate recorded restructuring charges of $4 million, $4 million, and $13 million in the September 2026, June 2026, and September 2025 quarters, respectively, primarily related to employee termination benefits. source