Seagate Technology vs Western Digital
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KIRA’s take AI analyst
I put Seagate Technology and Western Digital side by side, using each one’s latest annual report. Here is what stands out:
- Western Digital is the larger business, with $12.9B of revenue in fiscal 2026 against $12.2B for Seagate Technology.
- Western Digital grew revenue faster (35.7%, against 34.1%).
- Western Digital kept more of each dollar of sales as operating profit (34.5% operating margin, against 33.6%).
- Western Digital turned more of its sales into free cash flow (27.2% FCF margin, against 25.5%).
- Seagate Technology earned a higher return on the capital invested in it (92.0%, against 52.2%).
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Seagate Technology
STX
5/11
5-year growthReturn on capitalReturn on equityPiotroski F-scoreShare count change
Western Digital
WDC
6/11
Revenue growthGross marginOperating marginNet marginFCF marginNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | STX FY26 | WDC FY26 |
|---|---|---|
| Size | ||
| Market cap | $147.5B | $136.8B |
| Revenue | $12.2B | $12.9B |
| Free cash flow | $3.1B | $3.5B |
| Net income | $3.2B | $9.4B |
| Growth | ||
| Revenue growth | 34.1% | 35.7% |
| 5-year growth | 2.7% | −5.3% |
| Share count change | 5.5% | 6.7% |
| Profitability | ||
| Gross margin | 45.6% | 48.9% |
| Operating margin | 33.6% | 34.5% |
| Net margin | 26.1% | 73.0% |
| FCF margin | 25.5% | 27.2% |
| Return on capital | 92.0% | 52.2% |
| Return on equity | 371.5% | 133.0% |
| Balance sheet | ||
| Net debt | $1.9B | −$527M |
| Net debt / EBITDA | 0.4x | −0.1x |
| Dividends and buybacks | $810M | $2.8B |
| Valuation & quality | ||
| P/E | — | 13.8x |
| Piotroski F-score | 8 | 7 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.