The short answer
Seagate Technology (STX) is HALAL on ZakatInvest's qualitative core-business assessment, but its current total-assets debt screens fail. The qualitative verdict is HALAL because Seagate designs and manufactures hard-disk drives, storage systems and SSDs, which are generally permissible technology products. The current filing reports debt/assets of 43.44%, so the older “moderate leverage and every screen passes” summary is no longer accurate.
This is a reproducible research screen, not a fatwa or investment recommendation. Scholars and screening providers can differ on debt, lease treatment, surveillance use, supplier-finance arrangements and customer end use.
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.
Current quantitative screen
The calculations above use Seagate's official filing (Form 10-Q for the quarter ended April 3, 2026). Amounts are in USD millions and use total assets as the denominator so the inputs can be reproduced.
- Interest-bearing debt / assets: 43.44%, using $3.863 billion of debt net of issuance costs. This fails each examined total-assets debt limit.
- Cash plus separately identified investments / assets: 16.05%, using $1.146 billion of cash and $281 million of money-market funds, time deposits and certificates of deposit.
- Receivables plus cash / assets: 26.35%, using $1.197 billion of net accounts receivable and cash.
- Disclosed interest income / revenue: 0.19%, using $6 million of quarterly interest income against $3.112 billion of revenue.
FTSE Yasaar, MSCI total-assets and Malaysia SAC financial screens all fail on debt. Liquidity, receivables-plus-cash and disclosed interest income are below the examined limits, but they do not override the debt result. Market-cap denominator methods are not calculated because ZakatInvest does not store a licensed, reproducible historical market-cap series.
What Seagate does now
Seagate designs, manufactures and sells HDDs, storage systems and SSDs. In the March 2026 quarter, revenue was $3.112 billion, gross margin was 46.5% on the company's quarterly summary, and data-center products represented 80% of revenue versus 20% for Edge IoT. Nearline drives shipped 175.4 exabytes, and the filing links demand growth to cloud infrastructure and AI applications.
Data-storage hardware and related engineering are generally permissible technology commerce. The filing does not quantify every customer industry, surveillance application, government contract or end use, so the market split is not a universal prohibited-revenue numerator.
Debt and capital structure
Seagate reports $398 million of current debt and $3.465 billion of long-term debt, net of issuance costs. The notes carry stated interest, and the company also discloses approximately $1.4 billion of future interest payments on outstanding debt. The debt balance is the reason the three examined total-assets methodologies fail even though cash, receivables and disclosed interest income are below their respective thresholds.
Qualitative considerations
- AI and data centers: High-capacity nearline storage supports cloud and enterprise customers and AI workloads. The technology is neutral, while customer end use and government or surveillance deployments require context.
- Supplier financing: Seagate facilitates a voluntary third-party supply-chain financing program. The filing says Seagate does not set its terms and pays the financial institution the original invoice amount; the arrangement is not entered as customer lending in this screen.
- Interest income: The filing separately reports $6 million of interest income and $68 million of interest expense; the income figure is included rather than silently ignored.
- Operations: HAMR technology, tariffs, export controls, hyperscale customer concentration, environmental compliance, e-waste, cybersecurity and component sourcing remain continuing diligence questions.
Bottom line
Seagate Technology is presented as HALAL on ZakatInvest's qualitative core-business assessment, with FTSE Yasaar, MSCI total-assets and Malaysia SAC debt screens failing at 43.44%. No fixed purification percentage is prescribed here; the disclosed 0.19% interest-income ratio is a separate quantitative input, not a substitute for reviewing leverage and customer end use.
Use the quantitative screen alongside the qualitative product, customer and supplier analysis and consult a qualified scholar for your chosen methodology.
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