Seagate Projects 34% Revenue Growth in FY2027, Near-line Capacity Locked Until 2028

Seagate forecasts 34% revenue growth for FY2027 with gross margins near 57%. Near-line capacity is secured through 2028, and HAMR roadmap advances with Mosaic 3 mass production.

Woofun AI reports that Seagate Technology CEO Dave Mosley projected fiscal year 2027 revenue growth to exceed 2026 levels, targeting a full-year increase of 34%. CFO Gianluca Romano confirmed that quarterly revenue expansion and gross margin improvements are expected throughout the period, with September quarter gross margin guidance set at approximately 57% and operating margin at 50%. Near-line hard drive capacity remains secured via long-term supply agreements until 2028, with customer planning extending into 2029.

On the technical side, Mosaic 3 has achieved certification and entered mass production for major cloud providers, while Mosaic 4 (up to 44TB per disk) has ramped up with significant financial backing from the two largest CSPs. Mosaic 5 (5TB+ per disk) is scheduled to begin certification shipments by late 2027. The company noted that incremental gross margins will surpass 60%, aided by the phase-out of early HAMR customer discounts. Financially, the net debt leverage ratio has declined to 0.4 times, with $1.2 billion in debt repayment planned for the September quarter alongside accelerated share buybacks.