Seagate Technology Holdings plc stock research
FY2025 Q3
Seagate Technology Holdings (STX) Gross Margin — Quarter Ended Mar 28, 2025
In the current quarter, revenue and gross profit both decreased from the prior quarter, but gross margin improved slightly due to a proportionally larger decline in cost of revenue. Compared to the same quarter last year, revenue, gross profit, and gross margin all increased substantially, with cost of revenue growing at a slower rate than revenue.
Gross margin takeaway
Quarter ended Mar 28, 2025 · FY2025 Q3
In the current quarter, revenue and gross profit both decreased from the prior quarter, but gross margin improved slightly due to a proportionally larger decline in cost of revenue. Compared to the same quarter last year, revenue, gross profit, and gross margin all increased substantially, with cost of revenue growing at a slower rate than revenue.
- The strongest observable margin driver is the reduction in cost of revenue as a percentage of revenue, which improved from both the prior quarter and the year-ago quarter.
- Sequentially, gross margin improved from the prior quarter despite lower revenue, as cost of revenue declined more than revenue. Year-over-year, gross margin strengthened significantly, reflecting a larger improvement in gross profit relative to the increase in revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.2%
Gross profit
$760.0M
Revenue
$2.2B
Cost of revenue
$1.4B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+9.5 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 28, 2024 | $1.9B | $600.0M | $1.3B | 31.8% |
| Sep 27, 2024 | $2.2B | $714.0M | $1.5B | 32.9% |
| Dec 27, 2024 | $2.3B | $812.0M | $1.5B | 34.9% |
| Mar 28, 2025 | $2.2B | $760.0M | $1.4B | 35.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 27, 2024
+0.3 pts
Year-over-year change
Mar 29, 2024
+9.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the reduction in cost of revenue as a percentage of revenue, which improved from both the prior quarter and the year-ago quarter.
Sequentially, gross margin improved from the prior quarter despite lower revenue, as cost of revenue declined more than revenue. Year-over-year, gross margin strengthened significantly, reflecting a larger improvement in gross profit relative to the increase in revenue.
Monitor the ratio of cost of revenue to revenue, as it directly influences gross margin trends.