Is STX (Seagate Technology Holdings plc) Halal or Haram?

Based on our AAOIFI-standard shariah screening, STX is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (3.69% vs ≤33% threshold), interest income ratio (0.27% vs ≤5% threshold), and cash & securities ratio (0.61% vs ≤33% threshold).

Seagate Technology Holdings plc is a global leader in data storage solutions, operating across international markets. The company manufactures essential mass capacity storage products, including enterprise hard disk drives (HDDs), solid-state drives (SSDs), and consumer external storage under the Seagate and LaCie brands. For Muslim investors, Seagate represents a fully Halal investment opportunity, having successfully passed all four AAOIFI shariah screens. Its core business of computer hardware is entirely permissible, providing the physical infrastructure needed for global data management without engaging in prohibited sectors. From an Islamic finance perspective, Seagate's financial health is exceptionally strong. The company carries a remarkably low debt-to-market cap ratio of just 3.7% and holds minimal cash and securities relative to its market cap at 0.6%, minimizing exposure to interest-bearing instruments. Additionally, its interest income accounts for a mere 0.27% of total revenue, meaning purification requirements will be minimal. Since there are no scholarly debates regarding the permissibility of manufacturing data storage hardware, investors can feel confident in the nature of this business. Moving forward, Muslim shareholders should simply monitor the company's quarterly debt levels and interest income to ensure they remain safely below the AAOIFI thresholds. Seagate Technology Holdings plc operates in the Technology sector under the Computer Hardware industry and is headquartered in Singapore, SG. The company is led by CEO William David Mosley and employs approximately 30,000 people.

STX was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. STX passed 4 of these 4 screens.

Although STX passes all shariah screens, it does earn $25.0M in interest income (0.27% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $0.27 to purify the income.

STX was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.