---
title: "Seagate Reports 205% Profit Jump: All Server Storage Sold Out Through 2028"
description: "Seagate reported a 205% jump in net income to $1.78 billion amid the AI boom. All server storage volumes are sold out through the end of 2028, with some contracts extending to 2030."
date: 2026-10-28T16:48:20.313Z
lang: en
url: https://xab.info/en/posts/seagate-reports-205-percent-profit-jump
tags: [seagate, hard-drives, data-center, ai-infrastructure, earnings, storage]
author: "Alexander Buran"
publisher: "XAB.info"
---

# Seagate Reports 205% Profit Jump: All Server Storage Sold Out Through 2028

![Macro shot of a Seagate hard drive read head against a background of digital lines and green circuitry](https://xab.info/media/2026/10/28/seagate-chistaya-pribyl-205-nakopiteli-do-2028/seagate-chistaya-pribyl-205-nakopiteli-do-2028-1.webp)

## Key Points

- Seagate net income surged 205% to $1.78B, revenue rose 61% to $4.2B in Q1 FY2027
- Data center segment drove 81% of revenue; all server storage volumes sold out through end of 2028, some contracts to 2030
- Non-GAAP profit margin increased from 40.1% to 57.8%; EPS nearly tripled to $7.68
- Mozaic 4 drives purchased by two leading cloud providers, Mozaic 5 expected by end of 2027

Seagate Technology has published its financial results for the first quarter of fiscal 2027, which ended on October 2, 2026. The company's net income for the reporting period increased by 205% year-over-year to $1.78 billion. Revenue grew by 61% to $4.2 billion, beating analyst expectations. Earnings per share (EPS) nearly tripled, reaching $7.68. The primary growth driver was the data center (DC) segment, which accounted for 81% of the company's total revenue.

### AI Boom and Data Center Segment Dominance

In the data center segment, Seagate's revenue rose by 63% year-over-year to $3.4 billion. In terms of capacity, shipments of data center drives increased by 24% to reach 198 exabytes, representing 90% of the company's total shipments by capacity. The cloud segment remains a key growth engine, increasing its revenue for 12 consecutive quarters. Meanwhile, the edge computing and Internet of Things division, which provided the remaining 19% of revenue, showed 52% growth to $784 million, whereas non-nearline drives accounted for only 22 exabytes of shipments with a minimal 1% increase.

### All Volumes Sold Out Through the End of 2028

In the materials accompanying its quarterly report, Seagate announced that it has already allocated all future supply volumes in the data center segment through the end of the 2028 calendar year. Some cloud contracts extend through the end of the 2030 calendar year. The enterprise and OEM sectors have shown double-digit revenue growth for six consecutive quarters on both sequential and annual bases, which the company attributes to the growing popularity of hybrid server configurations.

### Technology Roadmap: Mozaic 4 and Mozaic 5

Seagate demonstrated in a laboratory setting the capability to record 8 terabytes of data on a single magnetic disk. Mozaic 4 generation drives are already being purchased by two leading cloud providers, and qualification tests by other customers are expected to conclude in the coming months. Qualification shipments of the next-generation Mozaic 5 family are expected by the end of the 2027 calendar year. Thus, the company reaffirms its course toward further increasing recording density, which is critical for meeting the growing capacity demand of data centers.

### Profitability and Operational Efficiency

Seagate's Non-GAAP profit margin rose year-over-year from 40.1% to 57.8%. Operating expense growth was successfully limited to 3% — reaching $300 million — while the operating profit margin increased from 29% to 50.7%. This dynamic indicates that the company is scaling production efficiently while maintaining cost control amid surging demand. During the reporting quarter, Seagate returned $568 million to investors through dividends and share buybacks.

### Current Quarter Outlook

For the current second quarter of fiscal 2027, Seagate forecasts revenue to range between $4.7 billion and $4.9 billion. Operating expenses are expected to be around $300 million, and earnings per share are projected to range from $9 to $9.40. These targets confirm a steady growth trajectory driven by structural demand for high-capacity hard disk drives from cloud and enterprise customers investing in artificial intelligence infrastructure.

## Fact-Check & Sources

- [Seagate распродала все серверные накопители до конца 2028 года — чистая прибыль взлетела в три раза window-new](https://3dnews.ru/1150530/seagate-rasprodala-vse-servernie-nakopiteli-do-kontsa-2028-godachistaya-pribil-vzletela-v-tri-raza) - All key financial metrics (net income $1.78B, revenue $4.2B, 205%/61% growth, DC share 81%, 198 exabytes, Mozaic 4/5, $4.7–$4.9B forecast) match the source text.

## FAQ

### What was Seagate's net income for Q1 FY2027?

Seagate's net income for the first quarter of fiscal 2027 (ended October 2, 2026) was $1.78 billion, a 205% increase year-over-year.

### Through what year has Seagate sold out its server storage volumes?

In the data center segment, Seagate has allocated all future supply volumes through the end of the 2028 calendar year. Certain cloud contracts extend through the end of the 2030 calendar year.

### What is Seagate's revenue forecast for the current quarter?

Seagate forecasts revenue between $4.7 billion and $4.9 billion, operating expenses of around $300 million, and an EPS ranging from $9 to $9.40.

### What are Mozaic 4 and Mozaic 5?

Mozaic 4 and Mozaic 5 are Seagate storage drive generations with increased recording density. Mozaic 4 is already being purchased by two leading cloud providers, while Mozaic 5 qualification shipments are expected by the end of the 2027 calendar year.