Sanmina Stock Earnings Reports

Sanmina reported a strong start to fiscal 2026: Q1 revenue $3.19B, non-GAAP operating margin 6.0%, non-GAAP diluted EPS $2.38, and operating cash flow $179M. Revenue was up 59% year-over-year, driven by communications networks and cloud & AI infrastructure growth in the core business and the contribution from the recently acquired ZT Systems. IMS segment revenue and margins improved (IMS gross margin 8.7%), CPS revenue grew modestly but is investing in new programs that should be margin-accretive over time. The company ended the quarter with $1.42B cash, no revolver borrowings, ~ $3.6B total liquidity, inventory elevated due to the ZT Systems acquisition (inventory turns impacted since only two months of COGS were included), and a conservative net leverage ratio of 0.8x. Q2 guidance: revenue $3.1B–$3.4B (midpoint $3.25B), non-GAAP operating margin 5.7%–6.2%, non-GAAP diluted EPS $2.25–$2.55 (midpoint $2.40), capex ≈ $95M, tax rate 21%–23%. Management says ZT Systems integration is on track, the acquisition is immediately EPS-accretive, and they see strong pipelines for AI/data-center and communications opportunities. Longer-term objectives include doubling revenue over two years (management expressed comfort with a path to ~$14B and AI opportunities targeting ~$16B+ by calendar 2027), disciplined ROI-based capital allocation, continued investments in capacity (U.S., India, Mexico), and a goal to reach investment-grade ratings over time.