STX Profit Margins
Gross, Operating & Net Margin Analysis for Seagate Technology Holdings Plc
Margin Quality
Good
Current Profit Margins
Gross Margin
35.2%
$3.20B gross profit
Operating Margin
20.8%
$1.89B operating income
Net Profit Margin
16.1%
$1.47B net income
5-Year Margin Trends
What Margins Indicate About STX
Business Quality
Moderate gross margins indicate Seagate Technology Holdings Plc operates in a competitive market with balanced pricing dynamics.
Operational Efficiency
Expanding operating margins show Seagate Technology Holdings Plc is improving operational leverage and cost management.
Profitability
Net margins above 15% demonstrate excellent profitability and suggest strong competitive positioning.
Investment Implications
Mixed margin trends require deeper analysis to understand underlying business dynamics and sustainability.
Understanding Profit Margins
Gross Margin
(Revenue - Cost of Goods Sold) / Revenue. Measures pricing power and production efficiency before operating expenses.
Operating Margin
Operating Income / Revenue. Shows profitability from core operations after all operating expenses but before interest and taxes.
Net Profit Margin
Net Income / Revenue. The bottom line - shows how much profit the company keeps from each dollar of revenue after all expenses.
Analyze STX Profitability
Get complete financial analysis with profitability trends, ROE, ROIC, and more
Frequently Asked Questions
What is STX's profit margin?
STX (Seagate Technology Holdings Plc) has a net profit margin of 16.1%, meaning the company keeps $0.16148180718918326 in profit for every dollar of revenue. This represents a change from the previous year's net margin of 16.1%.
What is STX's gross margin?
STX's gross margin is 35.2%. Gross margin measures the percentage of revenue remaining after subtracting the cost of goods sold. A moderate gross margin like this reflects the competitive dynamics of the Information Technology.
What is STX's operating margin?
STX has an operating margin of 20.8%. Operating margin shows profitability after operating expenses but before interest and taxes. The 20.8% year-over-year improvement suggests better operational efficiency.
Are STX's profit margins good?
STX's margins are considered good. When evaluating margins, it's important to compare against Technology Hardware, Storage & Peripherals peers, as different sectors have structurally different margin profiles.
How do profit margins affect STX stock?
Profit margins are a key indicator of STX's business quality and competitive position. High margins suggest strong competitive advantages and pricing power, which typically support premium valuations. Expanding margins often lead to stock price appreciation, while contracting margins can signal competitive pressures.
What drives STX's profit margins?
STX's profit margins are influenced by several factors: pricing power vs competitors, operational efficiency, scale advantages, input costs (materials, labor), Technology Hardware, Storage & Peripherals-specific dynamics, and management execution. The significant expansion in gross margin suggests changes in these underlying drivers.
Disclaimer: Margin analysis is based on reported financial statements and should be compared to industry peers for context. Different sectors have structurally different margin profiles. This information is for educational purposes only and should not be considered financial advice.