Seagate vs Western Digital: Revenue, Profit and Business Model
Seagate reported $12.2B of revenue in FY2026 and $3.2B of net income. Western Digital reported $12.9B of revenue in FY2026 and $9.3B of net income.
Latest financial snapshot
Seagate
- Latest revenue
- $12.2B (FY2026)
- Net income
- $3.2B
- Net margin
- 26.1%
- Revenue growth
- +1.4% a year, FY2017–FY2026
Western Digital
- Latest revenue
- $12.9B (FY2026)
- Net income
- $9.3B
- Net margin
- 72.0%
- Revenue growth
- -4.2% a year, FY2017–FY2026
Financial summary
Seagate
Seagate's results swing with cloud spending. Revenue fell from $11.66 billion in fiscal 2022 to $6.55 billion in fiscal 2024 during a cloud inventory correction, then recovered to $9.10 billion in fiscal 2025 and $12.20 billion in fiscal 2026. Margins expanded faster than sales: GAAP gross margin went from 35.2% in fiscal 2025 to 45.6% in fiscal 2026 and reached 52.3% in fiscal Q4 2026 as HAMR drives and firm pricing raised revenue per terabyte. Seagate used the cash to cut total debt to $3.6 billion and returned $810 million to shareholders in fiscal 2026.
Western Digital
Fiscal 2026 revenue rose 36% to $12.92 billion. GAAP gross margin widened to 48.9% from 38.8%, and GAAP operating income nearly doubled to $4.45 billion. GAAP diluted net income attributable to common shareholders was $9.30 billion, lifted by gains tied to the retained Sandisk stake; non-GAAP diluted EPS was $10.22 versus $5.02 a year earlier. In the fourth quarter, revenue reached $3.75 billion and GAAP gross margin was 54.1%. For the first quarter of fiscal 2027, the company guided to revenue of about $4.1 billion.
Revenue and profit by year
Seagate
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $12.2B | $3.2B | 26.1% | +34.1% | Source |
| FY2025 | $9.1B | $1.5B | 16.1% | +38.9% | Source |
| FY2024 | $6.6B | $335M | 5.1% | -11.3% | Source |
| FY2023 | $7.4B | -$529M | -7.2% | -36.7% | Source |
| FY2022 | $11.7B | $1.6B | 14.1% | +9.2% | Source |
| FY2021 | $10.7B | $1.3B | 12.3% | +1.6% | Source |
| FY2020 | $10.5B | $1B | 9.6% | +1.1% | Source |
| FY2019 | $10.4B | $2B | 19.4% | -7.1% | Source |
| FY2018 | $11.2B | $1.2B | 10.6% | +3.8% | Source |
| FY2017 | $10.8B | $772M | 7.2% | — | Source |
Western Digital
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $12.9B | $9.3B | 72.0% | +35.7% | Source |
| FY2025 | $9.5B | $1.6B | 16.8% | — | Source |
| FY2022 | $18.8B | $1.5B | 8.0% | +11.1% | Source |
| FY2021 | $16.9B | $821M | 4.9% | +1.1% | Source |
| FY2020 | $16.7B | -$250M | -1.5% | +1.0% | Source |
| FY2019 | $16.6B | -$754M | -4.6% | -19.8% | Source |
| FY2018 | $20.6B | $675M | 3.3% | +8.1% | Source |
| FY2017 | $19.1B | $397M | 2.1% | — | Source |
Where the revenue comes from
Seagate
- Enterprise nearline hard drives
- Client and consumer drives
- External storage products
- Systems and storage services
- Enterprise SSDs and complementary storage products
Western Digital
- Cloud
Largest end market
Nearline hard drives sold to hyperscale cloud providers and large enterprises.
- Client
Smaller end market
Hard drives sold to PC makers and device OEMs.
- Consumer
Smaller end market
Retail external and desktop drives under the WD brand.
Business model and strategy
Seagate
How it makes money
Seagate makes money by selling storage hardware. The largest piece is mass-capacity storage: nearline Exos hard drives sold to hyperscale cloud providers, enterprise OEMs and data center operators, plus drives for video surveillance and NAS.
Growth strategy
Seagate grows by raising capacity per drive rather than adding unit capacity. Each Mozaic generation (3+, then 4+ at up to 44TB, with Mozaic 5 targeting 50TB) lowers cost per terabyte for cloud customers while improving Seagate's margins. Management pitches HDDs as the economical home for the large datasets, checkpoints and archives that AI workloads create, and it keeps capital spending tight while paying down debt.
Competitive advantage
Seagate's edge is areal density. It is the only HDD maker shipping HAMR (heat-assisted magnetic recording) drives at scale, and in March 2026 it said Mozaic 4+ was qualified and in production with two leading hyperscale cloud providers at capacities up to 44TB. Higher capacity per drive lowers customers' cost and power per terabyte and lifts Seagate's margins without adding as much factory capacity.
Western Digital
How it makes money
Western Digital makes money by designing, manufacturing, and selling hard disk drives. Most revenue now comes from high-capacity nearline drives bought by hyperscale cloud providers and large enterprises to store large volumes of data at a low cost per terabyte. Smaller shares come from client drives and consumer storage products.
Growth strategy
The company is concentrating on higher-capacity drives for cloud customers, long-term supply agreements, margin expansion, and capital returns through dividends and share repurchases. It has also used its retained Sandisk shares to reduce debt and retire its own stock.
Competitive advantage
Western Digital is one of only three hard-drive manufacturers at scale, alongside Seagate and Toshiba. Its position rests on high-capacity drive engineering, in-house heads and media, qualification with hyperscale customers, and manufacturing scale.
Questions about Seagate vs Western Digital
Which company has higher revenue — Seagate Technology Holdings plc or Western Digital Corporation?
Seagate Technology Holdings plc reported $12.2B (FY2026), while Western Digital Corporation reported $12.9B (FY2026). By last reported revenue, Western Digital Corporation is the larger business, with Seagate Technology Holdings plc reporting a smaller revenue base.
What is the market cap of Seagate Technology Holdings plc vs Western Digital Corporation?
Seagate Technology Holdings plc has a market capitalisation of $195.3B. A public market cap figure for Western Digital Corporation was not available (it may be privately held).
Which is more financially efficient — Seagate Technology Holdings plc or Western Digital Corporation?
Seagate Technology Holdings plc generates $407k / employee in revenue per employee, while Western Digital Corporation generates $323k / employee. Seagate Technology Holdings plc shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Seagate Technology Holdings plc and Western Digital Corporation make money?
Seagate Technology Holdings plc and Western Digital Corporation generate revenue in fundamentally different ways. Seagate Technology Holdings plc: Seagate makes money by selling storage hardware. Western Digital Corporation: Western Digital makes money by designing, manufacturing, and selling hard disk drives.
Is Seagate Technology Holdings plc bigger than Western Digital Corporation?
By last reported revenue, Western Digital Corporation ($12.9B (FY2026)) is the larger company compared to Seagate Technology Holdings plc ($12.2B (FY2026)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Seagate vs Western Digital overview