Seagate Technology Holdings plc stock research
FY2026 Q1
Seagate Technology Holdings (STX) Gross Margin — Quarter Ended Oct 3, 2025
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit grew at a faster pace than revenue, while cost of revenue rose more slowly, resulting in an improved gross margin.
Gross margin takeaway
Quarter ended Oct 3, 2025 · FY2026 Q1
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit grew at a faster pace than revenue, while cost of revenue rose more slowly, resulting in an improved gross margin.
- Gross profit increased more rapidly than revenue, and cost of revenue increased at a slower rate, driving the gross margin higher.
- Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin also improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.4%
Gross profit
$1.0B
Revenue
$2.6B
Cost of revenue
$1.6B
Quarter-over-quarter change
+2.0 pts
Year-over-year change
+6.5 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 |
|---|---|---|---|---|
| Dec 27, 2024 | $2.3B | $812.0M | $1.5B | 34.9% |
| Mar 28, 2025 | $2.2B | $760.0M | $1.4B | 35.2% |
| Jun 27, 2025 | $2.4B | $914.0M | $1.5B | 37.4% |
| Oct 3, 2025 | $2.6B | $1.0B | $1.6B | 39.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 27, 2025
+2.0 pts
Year-over-year change
Sep 27, 2024
+6.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit increased more rapidly than revenue, and cost of revenue increased at a slower rate, driving the gross margin higher.
Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin also improved.
Monitor whether the trend of gross profit growing faster than revenue continues.