Q: What is Seagate Technology Plc (STX) Q2 2025 Earnings Call Transcript Summary?
Seagate Technology PLC (STX) recently held its Q2 2025 earnings call, providing insights into the company's performance and future outlook. The call highlighted several positive and negative aspects that could impact the company's stock price.
Here are the specific viewpoints from the earnings call:
**Bullish Points:**
1. Seagate closed out calendar 2024 on a strong note, driving 7% sequential revenue growth in the December quarter.
2. Non-GAAP gross margin expanded by more than 200 basis points, and non-GAAP earnings per share exceeded $2 for the first time in 12 quarters.
3. Increased demand across nearly all markets, with the most significant growth in the cloud sector.
4. Nearline product revenue almost doubled on a year-on-year basis, with close to 60% nearline revenue growth for the entire calendar year.
5. Strong momentum with aerial density-driven road map, positioning for significant profitable revenue growth for fiscal 2025 and beyond.
6. Completed qualification and started to ramp HAMR-based products to initial CSP customer.
7. Announced sampling of Mosaic drives with capacities of up to 36 terabytes.
8. Mass capacity revenue grew for the sixth consecutive quarter.
9. Non-GAAP operating income increased 22% sequentially to $538 million.
10. Non-GAAP EPS was $2.03, reflecting strong adoption of high-capacity nearline drives.
**Bearish Points:**
1. Production issue disclosed last month has led to supply constraints for the March quarter.
2. Revenue impact from supply constraints expected to be approximately $200 million in the March quarter.
3. Lower SSD revenue partially offset by improved system demand.
4. Inventory increased slightly to $1.5 billion, primarily to support the ramp of new high-capacity products.
For more information about Seagate Technology PLC's earnings call, you can read the relevant news: Seagate Technology Plc (STX) Q2 2025 Earnings Call Transcript
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