Sanmina (NASDAQ:SANM) Releases Earnings Results, Beats Expectations By $0.23 EPS

Sanmina (NASDAQ:SANM) issued its quarterly earnings data on Monday. The electronics maker reported $2.38 EPS for the quarter, beating the consensus estimate of $2.15 by $0.23, FiscalAI reports. Sanmina had a return on equity of 11.59% and a net margin of 3.03%.The company had revenue of $3.19 billion for the quarter, compared to analyst estimates of $3.09 billion. During the same period last year, the company earned $1.16 earnings per share. Sanmina’s quarterly revenue was up 59.0% compared to the same quarter last year. Sanmina updated its Q2 2026 guidance to 2.250-2.550 EPS.

Here are the key takeaways from Sanmina’s conference call:

• Q1 beat expectations — revenue of $3,190 million, non?GAAP operating margin of 6.0% and non?GAAP EPS of $2.38 came in at or above the high end of guidance, driven by core Sanmina strength and the ZT Systems contribution.
• Strong cash and liquidity — operating cash flow of $179 million, $1.42 billion in cash, ~ $3.6 billion total liquidity, and ongoing share repurchases (516,000 shares for ~$79 million) support capital returns and investments.
• ZT Systems acquisition is accretive and on plan — integration is tracking to expectations, immediately EPS?accretive, and management believes AI opportunities could drive the company toward a ~$16+ billion calendar?2027 revenue opportunity.
• Inventory and working capital increased — inventory (net of customer advances) rose ~74% year?over?year to $2.2 billion and turns declined to 5.3x (partly due to only two months of ZT COGS), which will raise working?capital needs as ZT is fully integrated.
• Q2 outlook and investments — management guided revenue $3.1B–$3.4B, non?GAAP EPS $2.25–$2.55 and ~ $95M capex while warning of tariff/geopolitical uncertainty; core Sanmina is expected to grow high single digits and operating margin is forecasted ~5.7%–6.2%.

Sanmina Stock Performance

NASDAQ SANM opened at $182.54 on Tuesday. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.72 and a quick ratio of 1.02. The company has a market cap of $9.96 billion, a P/E ratio of 40.93, a P/E/G ratio of 0.86 and a beta of 1.05. The stock has a 50-day moving average of $159.22 and a two-hundred day moving average of $136.31. Sanmina has a 1-year low of $63.67 and a 1-year high of $185.29.

Key Sanmina News

Here are the key news stories impacting Sanmina this week:

• Positive Sentiment: Management set an ambitious long?term growth target — a $16 billion revenue goal for 2027 driven by AI infrastructure demand and the integration of ZT Systems, which supports a multi?year revenue runway and justifies a premium multiple. Sanmina targets $16B revenue in 2027 with AI-driven growth and ZT Systems integration
• Positive Sentiment: Industry coverage highlights a surge in revenue tied to AI infrastructure expansion — evidence that secular AI demand is lifting current sales and could sustain higher utilization and margins. Sanmina reports surge in revenue driven by AI infrastructure expansion
• Positive Sentiment: Q1 results materially beat estimates: Non?GAAP EPS of $2.38 and revenue of $3.19B (up ~59% YoY), showing strong execution and validating near?term demand strength. These beats underpin the bullish narrative despite mixed guidance. Sanmina Reports First Quarter Fiscal 2026 Financial Results
• Neutral Sentiment: Management commentary and the earnings slide deck provide more color on product mix, supply chain, and AI server demand — useful for modeling revenue cadence and margin progression but not immediately price?moving by itself. Sanmina Corporation (SANM) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Near?term revenue guidance disappointed: Q2 revenue was guided to $3.1B–$3.4B versus consensus near $3.5B, which triggered an initial share selloff as investors worried about quarter?to?quarter softening despite EPS guidance that was raised. Sanmina shares tumble as revenue guidance falls short of expectations

Analyst Ratings Changes

Several research analysts have recently weighed in on SANM shares. Zacks Research cut shares of Sanmina from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 5th. Wall Street Zen lowered shares of Sanmina from a “strong-buy” rating to a “buy” rating in a report on Sunday, November 16th. Finally, Weiss Ratings restated a “buy (b)” rating on shares of Sanmina in a report on Wednesday, October 8th. One equities research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Sanmina presently has an average rating of “Hold” and an average target price of $120.00.

Insiders Place Their Bets

In other news, insider Vishnu Venkatesh sold 692 shares of the stock in a transaction on Wednesday, December 17th. The stock was sold at an average price of $149.22, for a total value of $103,260.24. Following the sale, the insider directly owned 23,500 shares in the company, valued at approximately $3,506,670. This trade represents a 2.86% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 3.22% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Sanmina

A number of institutional investors and hedge funds have recently modified their holdings of the company. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Sanmina in the 3rd quarter valued at about $26,000. Danske Bank A S purchased a new stake in Sanmina in the third quarter valued at approximately $69,000. EverSource Wealth Advisors LLC grew its position in shares of Sanmina by 86.8% during the second quarter. EverSource Wealth Advisors LLC now owns 1,227 shares of the electronics maker’s stock worth $120,000 after acquiring an additional 570 shares during the last quarter. Rehmann Capital Advisory Group acquired a new position in shares of Sanmina in the 3rd quarter valued at $200,000. Finally, Abel Hall LLC purchased a new stake in Sanmina in the 3rd quarter valued at $201,000. Institutional investors and hedge funds own 92.71% of the company’s stock.

About Sanmina

Sanmina Corporation is a leading global electronics manufacturing services (EMS) provider specializing in the design, production and end-to-end supply chain solutions for complex electronic products. Founded in 1980, the company has built a reputation for delivering high-reliability manufacturing across a wide range of industries, including communications, computing, aerospace and defense, medical, automotive and industrial sectors.

Sanmina’s core offerings encompass product design and engineering support, precision PCB fabrication and assembly, system integration, testing, and final system deployment.