Seagate Technology Holdings plc stock research
FY2026 Q2
Seagate Technology Holdings (STX) Gross Margin — Quarter Ended Jan 2, 2026
Revenue and gross profit both rose, while cost of revenue was unchanged compared to the immediately preceding quarter. Gross margin improved sharply from a year earlier, reflecting a stronger relationship between revenue growth and cost management.
Gross margin takeaway
Quarter ended Jan 2, 2026 · FY2026 Q2
Revenue and gross profit both rose, while cost of revenue was unchanged compared to the immediately preceding quarter. Gross margin improved sharply from a year earlier, reflecting a stronger relationship between revenue growth and cost management.
- The improvement in gross margin compared to the prior quarter was driven by higher gross profit on unchanged cost of revenue, indicating revenue growth outpaced cost growth. Compared to the same quarter last year, the gross margin increase was supported by both higher revenue and a smaller relative rise in cost of revenue.
- Gross margin improved versus both the immediately preceding quarter and the same quarter one year earlier. The improvement from the prior quarter was driven by revenue growth with stable cost of revenue, while the year-over-year gain reflected stronger revenue expansion relative to cost growth.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
41.6%
Gross profit
$1.2B
Revenue
$2.8B
Cost of revenue
$1.6B
Quarter-over-quarter change
+2.2 pts
Year-over-year change
+6.7 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 |
|---|---|---|---|---|
| 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% |
| Jan 2, 2026 | $2.8B | $1.2B | $1.6B | 41.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 3, 2025
+2.2 pts
Year-over-year change
Dec 27, 2024
+6.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin compared to the prior quarter was driven by higher gross profit on unchanged cost of revenue, indicating revenue growth outpaced cost growth. Compared to the same quarter last year, the gross margin increase was supported by both higher revenue and a smaller relative rise in cost of revenue.
Gross margin improved versus both the immediately preceding quarter and the same quarter one year earlier. The improvement from the prior quarter was driven by revenue growth with stable cost of revenue, while the year-over-year gain reflected stronger revenue expansion relative to cost growth.
Monitor the trajectory of revenue growth relative to cost of revenue in the coming quarters to assess whether gross margin can sustain its recent improvement.