Seagate Technology Holdings (STX) risk factors, FY2025 10-K

RISKS RELATED TO OUR BUSINESS, OPERATIONS AND INDUSTRY

1. 01Our ability to increase our revenue and maintain our market share depends on our ability to successfully introduce and achieve market acceptance of new products on a timely basis. If our products do not keep pace with customer requirements, our results of operations will be adversely affected
2. 02In addition, the concentration of customers in our largest end markets magnifies the potential adverse effect of missing a product qualification opportunity. If the delivery of our products is delayed, our customers may use our competitors’ products to meet their requirements
3. 03We face intense competition in the data storage industry. Our principal sources of competition include HDD and SSD manufacturers, and companies that provide storage subsystems, including electronic manufacturing services and contract electronic manufacturing
4. 04We have been, and may in the future be, adversely affected by reduced, delayed, loss of or canceled purchases by, one or more of our key customers, including large hyperscale data center companies and CSPs
5. 05We are dependent on sales to distributors and retailers, which may increase price erosion and the volatility of our sales
6. 06Changes in demand for computer systems, data storage subsystems and consumer electronic devices has previously caused, and may in the future cause, a decline in demand for our products
7. 07The deterioration of demand for disk drives in certain of the legacy markets has accelerated, and we believe this deterioration may continue and may further accelerate, which has caused and could further cause our operating results to suffer
8. 08Our nearline storage solutions are technically complex and we typically supply them in high quantities to a small number of customers. Many of our products are tailored to meet the specific requirements of individual customers and are often integrated by our customers into the systems and products that they sell
9. 09We experience seasonal declines in the sales of our consumer products during the second half of our fiscal year which may adversely affect our results of operations
10. 10Our worldwide sales and manufacturing operations subject us to risks that may adversely affect our business related to disruptions in international markets, currency exchange fluctuations and increased costs
11. 11We may not be able to execute acquisitions, divestitures and other significant transactions successfully and we may have difficulty or fail to successfully integrate acquired companies
12. 12Shortages or delays in the receipt of, or cost increases in, critical components, equipment or raw materials necessary to manufacture our products, as well as reliance on single-source suppliers, has in the past and may in the future affect our production and development of products and harm our operating results
13. 13Due to the complexity of our products, some defects may only become detectable after deployment, which may lead to increased costs and adversely affect our operating results

RISKS RELATED TO FINANCIAL PERFORMANCE OR GENERAL ECONOMIC CONDITIONS

1. 14Changes in the macroeconomic environment have impacted and may continue to negatively impact our results of operations
2. 15We may not be able to generate sufficient cash flows from operations and our investments to meet our liquidity requirements, including servicing our indebtedness and continuing to declare our quarterly dividend
3. 16Our quarterly results of operations fluctuate, sometimes significantly, from period to period, and may cause our share price to decline
4. 17If we do not adequately control our costs or if any cost reduction initiatives that we undertake do not deliver the results we expect, we will not be able to compete effectively and our financial condition may be adversely impacted
5. 18The effect of geopolitical uncertainties, political unrest, war, terrorism, natural disasters, public health issues and other circumstances, on national and/or international commerce and on the global economy, could materially and adversely affect our results of operations and financial condition
6. 19We are subject to counterparty default risks

LEGAL, REGULATORY AND COMPLIANCE RISKS

1. 20Our business is subject to various laws, regulations and governmental policies that may cause us to incur significant expense or adversely impact our results of operations and financial condition
2. 21As the laws and regulations to which we are subject continue to change and vary greatly from jurisdiction to jurisdiction, compliance with such laws and regulations may be onerous, may create uncertainty as to how they will be applied and interpreted, and may continue to increase our cost of doing business globally
3. 22Changes in U.S. trade policy, including the imposition of sanctions or tariffs and the resulting consequences, may have a material and adverse impact on our business and results of operations
4. 23Our business is exposed to risks associated with litigation, investigations and regulatory proceedings that may cause us to incur significant expense or adversely impact our results of operations and financial condition
5. 24Tax-related matters could have a material and adverse effect on our business, results of operations or financial condition

RISKS RELATED TO INTELLECTUAL PROPERTY AND OTHER PROPRIETARY RIGHTS

1. 25We may be unable to protect our intellectual property rights, which could adversely affect our business, financial condition and results of operations
2. 26We are at times subject to intellectual property proceedings and claims which could cause us to incur significant additional costs or prevent us from selling our products, and which could adversely affect our results of operations and financial condition
3. 27Our business and certain products and services depend in part on intellectual property and technology licensed from third parties, as well as data centers and infrastructure operated by third parties

RISKS RELATED TO INFORMATION TECHNOLOGY, DATA AND INFORMATION SECURITY

1. 28There can be no assurance that our cybersecurity management program and processes, including our policies, controls or procedures, will be implemented consistently, complied with or effective in protecting our systems and information
2. 29We have invested and will continue to invest in and implement modifications and upgrades to our IT systems and procedures, including making changes to legacy systems or acquiring new systems with new functionality, and building new policies, procedures, training programs and monitoring tools

RISKS RELATED TO HUMAN CAPITAL AND CORPORATE RESPONSIBILITY

1. 30The loss of or inability to attract, retain and motivate key executive officers and employees could negatively impact our business prospects
2. 31We are subject to risks related to corporate and social responsibility that could adversely affect our reputation and performance

RISKS RELATED TO OWNING OUR ORDINARY SHARES

1. 32The price of our ordinary shares may be volatile and could decline significantly
2. 33Any decision to reduce or discontinue the payment of cash dividends to our shareholders or the repurchase of our ordinary shares pursuant to our previously announced share repurchase program could cause the market price of our ordinary shares to decline significantly