Moody’s Ratings upgraded Seagate Technology’s corporate family rating to Ba1 from Ba2 and its senior unsecured rating to Ba2 from Ba3, citing sustained revenue and profitability growth tied to artificial intelligence infrastructure investment.
The ratings outlook for both Seagate Data Storage Technology Pte. Ltd. and its subsidiary Seagate HDD Cayman was revised to stable from positive, reflecting expectations of continued demand for high-capacity hard disk drives (HDDs) used in AI-related storage systems. Seagate operates as one of two principal HDD suppliers, supplying nearline HDD exabyte capacity to customers through calendar year 2027 under a build-to-order model focused on the hyperscale cloud segment.
Over the next 12 to 18 months, Moody’s projects Seagate’s annual revenues to rise by more than 30%, approaching $20 billion. Financial leverage is expected to decline to below 0.5x debt-to-EBITDA from 0.9x as of July 3, 2026, while free cash flow is forecast to exceed $4 billion annually. The company reported $1.7 billion in cash balances and maintains full access to a $1.3 billion revolving credit facility maturing in January 2030.
Moody’s noted risks including high business concentration in HDDs, substitution pressures from flash memory in legacy markets, potential pricing compression, and growing revenue dependence on the hyperscale cloud segment, which increases customer concentration and variability.
