Direct Answer
6 SEC filers are classified under the Standard Industrial Classification code that describes the data storage hardware industry, and their latest annual reports show $36.2 billion of combined revenue and a median operating margin of 12.0%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Data storage hardware makers build disk drives, flash arrays and storage systems that hold enterprise and cloud data. Demand follows data growth and cloud buildouts, and prices fall each year with technology. The first numbers to compare across companies here are exabytes shipped, average selling price per terabyte and gross margin.
Key Industry Metrics
- Exabytes shipped: The amount of storage capacity shipped, measured in exabytes. Volume tracks data growth and cloud buildouts, and it separates real demand from price changes.
- Average selling price per terabyte: Revenue earned per unit of capacity. It falls over time as technology improves, so rising prices show tight supply and falling prices reveal oversupply or weak demand.
- Gross margin: Revenue left after components and manufacturing. Pricing swings and plant utilization have a large effect, since drives and flash are sold in a competitive commodity market.
- Customer concentration: The share of sales from a few cloud providers and large buyers. Their purchases come in waves, so a pause can leave suppliers with excess stock.
- Inventory: Drives, flash and parts held. Rising inventory when pricing is weak often leads to write-downs, while lean stock supports price discipline.
Primary Macro Drivers
- Cloud and AI data growth: Growing volumes of video, cloud and AI data require more capacity, lifting exabytes shipped and revenue.
- Hyperscaler purchases: Large cloud buyers purchase in big batches, so their spending cycles show up in shipments, average selling price and inventory levels.
- Technology transitions: Higher-capacity drives and denser flash cut cost per terabyte, supporting demand and shifting average selling price and gross margin.
- Supply discipline: When producers hold back output to match demand, prices stabilize and gross margin improves; watch inventory and capital spending.
Major Risks
- Cyclical pricing: Oversupply or weak demand pushes price per terabyte down, hurting gross margin; watch average selling price and inventory days.
- Customer concentration: A few cloud buyers account for much of volume, so delayed purchases swing revenue; watch top-customer share and shipment trends.
- Cloud substitution: Cloud providers' own storage services reduce on-premises buying; watch enterprise segment shipments and customer mix.
- Inventory write-downs: When prices drop faster than costs, held inventory is worth less and must be written down; watch inventory levels and any lower-of-cost charges.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | Medium |
| Regulatory Intensity | Low |
| Industry Maturity | Mature |
| Geographic Importance | Global |
Data Storage Hardware Filers in the SEC Record
6 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 3572. Their latest fiscal years end between 2025 and 2026, and together they reported $36.2 billion of revenue. Median revenue growth over the prior year was 10.4%. Median operating margin was 12.0% and median net margin 10.6%. Median total liabilities were 78% of total assets, and 4 of 6 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Western Digital Corp | $9.5 billion | 50.7% | 24.5% | 17.3% | FY 2025 |
| Seagate Technology Holdings Plc | $9.1 billion | n/a | 20.8% | 16.1% | FY 2025 |
| Sandisk Corp | $7.4 billion | 10.4% | -18.7% | -22.3% | FY 2025 |
| Netapp, Inc. | $6.2 billion | 5.6% | 26.8% | 20.5% | FY 2026 |
| Everpure, Inc. | $3.7 billion | 15.6% | 3.1% | 5.1% | FY 2026 |
| Quantum Corp | $280 million | 2.0% | -8.8% | -36.1% | FY 2026 |
Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Data Storage Hardware guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Data Storage Hardware industry?
Key performance indicators for the Data Storage Hardware industry include: Exabytes shipped, Average selling price per terabyte, Gross margin, Customer concentration, Inventory. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Data Storage Hardware industry?
The Data Storage Hardware industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.
What are the biggest risks in the Data Storage Hardware industry?
The primary risks for Data Storage Hardware companies include: Cyclical pricing, Customer concentration, Cloud substitution, Inventory write-downs. Investors should assess each company's exposure to these factors and its track record of navigating them.