Seagate Technology’s CFO, Gianluca Romano, stated at a Citi technology conference that demand for data storage is set to outpace supply due to rising public-cloud investments, enterprise needs, and advancements in artificial intelligence applications. The hard-disk-drive maker has reported increasing revenue and profitability over the past three years and anticipates continued improvements through fiscal 2027, with expectations for a compound annual growth rate of at least 25% in exabytes shipped.
Seagate’s strategy involves increasing storage capacity with 40-terabyte drives transitioning from 30-terabyte ones, and a potential 50-terabyte drive expected to be qualified within a year. Purchase orders indicate strong customer demand, particularly from public-cloud clients, with improvements in pricing across segments as the gap between supply and demand widens. The company reported free cash flow of approximately $1.1 billion in the prior quarter and plans to focus on share repurchases while maintaining dividend returns.
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