Munger Mode rating: 2 out of 5 — Sell. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
We have watched the hard disk drive industry for four decades, and we have never seen it look better than it does today. Seagate just reported the finest year in its 47-year history: fiscal 2026 revenue of $12.2 billion, up 34%; record gross margins of 52.7% in the June quarter; record free cash flow of $3.1 billion; and every drive it can build sold out into calendar 2028. The company's 20-year bet on heat-assisted magnetic recording (HAMR) has been vindicated — it is shipping 44TB drives in volume to hyperscalers while its main competitor is still qualifying its own version. And yet we arrive at a Sell.
Recent filings analysed: 10-K (2026-08-04), 8-K (2026-07-28), 8-K (2026-06-12), 8-K (2026-05-28).
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