STX
Seagate Technology Holdings plc
Is STX Halal?
Data-storage hardware with a generally permissible core business; current total-assets debt screens fail.
What You Should Know
Seagate designs and manufactures HDDs, storage systems and SSDs for data centers, cloud, enterprise and Edge IoT markets. Debt/assets are 43.44%, above the examined total-assets limits; cash, receivables and disclosed interest income remain below the other examined thresholds.
⚠️ Concerns
- •Debt/assets are 43.44% and exceed the examined total-assets limits
- •Data-center, AI, surveillance and government customer end uses are not fully disaggregated
- •Supplier supply-chain financing is facilitated through third-party institutions
- •HDD demand, HAMR, pricing, tariffs and hyperscale concentration require continuing review
- •Environmental compliance, e-waste, cybersecurity and cross-border supply-chain practices require continuing review
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-04-03; calculated 2026-07-13.
3,863 / 8,892
1,427 / 8,892
2,343 / 8,892
6 / 3,112
- Financial
- Fails
- Overall
- Fails
Debt is 43.44%, above the examined FTSE 33.333% asset limit. Liquidity is 16.05%, receivables plus cash are 26.35%, and disclosed interest income is 0.19%; those other ratios are below the examined limits, but the debt failure is decisive.
- Financial
- Fails
- Overall
- Fails
Debt is 43.44%, above the examined MSCI total-assets limit of 33.33%. Liquidity is 16.05% and receivables plus cash are 26.35%. This is a calculation against the named method, not an index-membership claim; business allocation is also incomplete.
- Financial
- Fails
- Overall
- Fails
Debt is 43.44%, above the examined Malaysia SAC 33% financial limit; identifiable liquidity is 16.05%. This is a calculation against SAC ratios, not an official SAC classification of a U.S.-listed security; product and supplier activity remains unresolved.
- Financial
- Not calculated
- Overall
- Not calculated
A properly licensed and reproducible historical market-cap series is not stored, so these methods are not estimated from a current spot price.
Business-activity disclosure
Seagate designs, manufactures and sells hard-disk drives, storage systems and solid-state drives for data centers, cloud and enterprise customers, and Edge IoT markets. Data-storage hardware is generally permissible technology commerce and no conventional lending arm is disclosed.
Limitation: The filing does not quantify every customer end use, surveillance application, government contract, data-center workload or product-level activity into a universal prohibited-revenue numerator.
Purification
Seagate discloses $6 million of interest income, or 0.19% of quarterly revenue, but the filing does not provide a complete activity-level allocation for customer end uses or supplier arrangements. No fixed purification percentage is prescribed here.
Inputs, assumptions and primary sources
- Debt uses $3.863 billion of debt net of issuance costs, including the $398 million current portion and $3.465 billion long-term portion. Operating and supplier-finance liabilities are not entered as conventional debt here.
- Cash uses $1.146 billion of cash and cash equivalents. The filing's fair-value table separately identifies $281 million of money-market funds, time deposits and certificates of deposit as the interest-bearing securities input.
- Receivables use the $1.197 billion net accounts-receivable balance. Seagate has no disclosed financing arm; its supplier-finance program is described separately and is not treated as customer lending.
- Revenue uses $3.112 billion for the three months ended April 3, 2026. Data center represented 80% of revenue and Edge IoT 20% under the filing's revised market presentation.
- The filing reports $6 million of quarterly interest income and $68 million of interest expense. Only the disclosed interest-income line is used for the income screen.
- The filing describes HDDs, storage systems and SSDs as the principal products, with cloud and enterprise data-center demand and AI-driven applications as important growth drivers.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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