Tip: Try a valid symbol or a specific company name for relevant results A pro-grade research workspace with advanced charts, company data and real-time news. Now part of Yahoo Finance Gold.Learn more Seagate’s Gross Margin Hit 52.7% Last Quarter. Here’s Why the CFO Says It Holds The above button links to Coinbase.
Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Seagate's Gross Margin Hit 52.7% Last Quarter. Here's Why the CFO Says It Holds ©TIKR **Seagate Technology Holdings (STX)** has done something the market spent a decade assuming a hard-drive maker could never do: raise prices, quarter after quarter, and make it stick. Price per exabyte climbed at a double-digit annual rate last quarter, and non-GAAP gross margin reached 52.7% in the June quarter, up roughly 570 basis points sequentially, and the thirteenth straight quarter of expansion.
At $771.81 after a September 15 slide, one question now decides the stock. Is that pricing power durable, or is it a one-cycle spike that reverses the moment supply catches up? The stock fell 4.19% on September 15 and sits about 30% below its June record near $1,093, dragged down with the storage group on fears that gains in AI compute efficiency could soften future infrastructure demand.
At the Goldman Sachs Communacopia conference five days earlier, CFO Gianluca Romano gave the most concrete defense yet of why the pricing holds, and it turns on how small Seagate's bill is on a customer's invoice. Why the Pricing Sticks: Seagate Is a Rounding Error on a Cloud Budget Romano's key disclosure was a number he had not stressed before. Seagate's drives now cost its cloud customers only "low to middle single digit" of their total capital spending.
That is the crux of the pricing thesis. When storage is a few percent of a hyperscaler's budget, and the alternative to keeping data is the far higher cost of recomputing it, a double-digit price increase per exabyte barely registers against the value delivered. "We changed the pricing strategy about 3 years ago," said Romano, EVP and CFO, tying the shift to a tighter supply-demand balance and the rising value of stored data.
Extract — continue reading at the source.
