Seagate Technology Holdings PLC Ordinary Shares (Ireland) Goldman Sachs Communacopia + Technology Conference 2026

Yeah. Before we start, let me inform everyone that I will be making forward-looking statements today, and you can learn more about the risks associated with those statements on our website. Well, it's a very good question. I would say, if you look at the CapEx of our customers, the growth in their CapEx is signaling still being in a first part of the phase of AI investment. Therefore, for what we are concerned on investment in storage, in data storage, especially in the big public cloud, and more recently, I would say even more on on-prem data center with a fairly good growth on enterprise OEM.

In general, I would say it's important for this industry to be disciplined with CapEx and with capacity addition. I think we have been very well-aligned to this discipline for two or three years at this point in time. The business is growing because of technology, not because of more units. We move up in technology with products that have more content inside the box, and that is generating, at the end of the quarter, more exabyte. Finally, this industry is selling exabytes, not units. So what we need to focus is, of course, always looking at supply and demand, and keeping a good balance between the two, and also now strongly pushing on our technology to continue to grow in exabyte year after year.

Well, every quarter is different. Every year is different. We gave this mid-20% CAGR for a fairly long period of time. We said about 3 or 4 years. Of course, you need to look at the real exabyte growth, not only in percentage, but also the real number, in absolute number. And of course, when the base starts to grow, you add a lot of exabytes, maybe in percentage is not exactly the same of what you were doing 2 or 3 years before, but actually in exabyte is more. So that increased number of exabyte is actually what is impacting positively your revenue growth. So when the base change percentage, it could be a little bit misleading. So I always look more at the absolute numbers than percentages. But this industry, and Seagate in particular, I think, is growing very strongly in exabyte.

As we said, this will continue because of the applications that are today and in the future impacting the need for more storage. If I look today where storage is, there is a lot of traditional application, and then there is the new input from video AI, from starting robotic AI. Or if you are here in San Francisco, you see a lot of autonomous driving. All those cars have a lot of camera, and all the data that they collect all day long gets stored. If you multiply San Francisco for the rest of the world, you can just imagine how much data autonomous driving will generate and the need for storage. And this is just one application. Even robotic AI is just the beginning.

There is a lot of quality control that is done connected to AI, so that you get an input from AI on how to identify an eventual problem, and eventually how to fix the eventual problem. Some of that is in the form of video, and video consume a lot of exabyte. So there are a lot of new applications, but the common theme of those application is everything is based on data. And that data is very, very valuable. When you have valuable data, the cost of storage is minimal comparing to recompute that data. And that's why storage is growing at the pace that you have seen in the last 2 or 3 years.

No, I think you can look at the trend. Because we are growing fairly rapidly in terms of exabyte, the base is really growing.

Sure. If you look at growing, I don't know, 25% or 30% this year comparing to three years ago, that is maybe a 50-plus percent.