How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Seagate (STX) ten years ago? It may not have been easy to hold on to STX for all that time, but if you did, how much would your investment be worth today?
Seagate's Business In-Depth
With that in mind, let's take a look at Seagate's main business drivers.
Headquartered at Dublin, Ireland, Seagate is a leading provider of data storage technology and infrastructure solutions. The company’s primary product offering is hard disk drives which is commonly referred to as disk drives, hard drives or HDDs. HDDs are used as the primary medium for storing digitally encoded data on rapidly rotating disks with magnetic surfaces.
Seagate also develops other electronic data storage products such as SSDs (solid state drives) and storage subsystems. Also, the company offers storage solutions like a scalable edge-to-cloud mass data platform that includes data transfer shuttles and a storage-as-a-service cloud.
The HDD and SSD product portfolio includes Serial Attached SCSI (SAS), Serial Advanced Technology Attachment (SATA), and NonVolatile Memory Express (NVMe) based designs to support various mass capacity and legacy applications. The systems portfolio includes storage subsystems for scale-out storage servers, enterprises, cloud service providers (CSPs) and original equipment manufacturers (OEMs).
Seagate reported revenues of $9.1 billion in fiscal 2025.
The Mass Capacity Storage product line includes high-capacity enterprise HDDs that ship in capacities of up to 44TB. The portfolio also includes enterprise nearline SSDs, video and image HDDs (VIA) and network attached storage (NAS) HDDs and SSDs. In fiscal 2025, the company shipped 595 exabytes of HDD storage capacity. It generated 80% of its revenues from OEMs, 12% from distributors and 8% from retailers. Regionally, 49% came from the Americas, 41% from the Asia Pacific and 10% from EMEA.
Starting from first-quarter fiscal 2026, Seagate reports revenues under two end markets - Data Center, encompassing nearline products and systems sold to cloud, enterprise and VIA customers, and Edge IoT, covering consumer and client-focused segments, including network-attached storage. The structural changes in its business model are poised to generate greater profitability and improve its financial health.
It shipped more than 1 million Mozaic drives during the September quarter.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Seagate a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in December 2015 would be worth $7,992.20, or a gain of 699.22%, as of December 1, 2025, and this return excludes dividends but includes price increases.
In comparison, the S&P 500's gained 227.69% and the price of gold went up 279.23% over the same time frame.
Analysts are anticipating more upside for STX.
Seagate is gaining from strong global cloud demand and rapid growth in high-capacity HAMR drive adoption, with cloud demand and improving enterprise OEM trends expected to continue. The data center generates a lion's share of the company's revenue, and we project it to reach $8.6B in fiscal 2026. High-capacity nearline production is largely booked through 2026, with long-term contracts providing strong demand visibility through 2027. It expects seasonal improvement in Edge IoT revenue in the December quarter, driven by VIA, edge and consumer products. Solid uptake of high-capacity nearline products and pricing actions are aiding margins. Healthy cash flows and disciplined capital allocations bode well. Backed by cloud and AI demand, it projects fiscal second-quarter revenue of $2.7 billion (+/- $100 million), up 16% year over year at the midpoint.
Shares have gained 8.13% over the past four weeks and there have been 5 higher earnings estimate revisions for fiscal 2025 compared to none lower. The consensus estimate has moved up as well.
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Seagate Technology Holdings PLC (STX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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