Aug. 28 at 8:54 PM
Moody’s Ratings upgraded Seagate Data Storage Technology’s corporate family rating to Ba1 from Ba2 and its senior unsecured debt rating to Ba2 from Ba3. The agency also changed the outlooks for Seagate Data and Seagate HDD Cayman to Stable from Positive, citing expectations for stronger revenue and profitability as AI infrastructure spending drives demand for high-capacity hard drives.
Moody’s expects Seagate Data’s revenue to grow more than 30% annually over the next 12-18 months, with its on-demand model already allocating nearline HDD capacity to customers through 2027. Annual revenue could approach
$20 billion, while debt-to-EBITDA is expected to fall below 0.5x from 0.9x as of July 3, 2026. Free cash flow is projected to exceed
$4 billion annually.
Seagate remains one of the two leading HDD suppliers, benefiting from the cost-effective storage needs of hyperscale cloud providers.
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