Sanmina (NASDAQ:SANM) Posts Quarterly Earnings Results, Beats Expectations By $0.54 EPS

Sanmina (NASDAQ:SANM) posted its earnings results on Monday. The electronics maker reported $3.31 earnings per share for the quarter, topping the consensus estimate of $2.77 by $0.54, FiscalAI reports. The business had revenue of $3.46 billion for the quarter, compared to analyst estimates of $3.40 billion. Sanmina had a net margin of 2.41% and a return on equity of 19.36%. The firm’s quarterly revenue was up 69.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.53 EPS. Sanmina updated its Q4 2026 guidance to 3.050-3.350 EPS and its FY 2026 guidance to 11.900-12.200 EPS.

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

• Strong third-quarter performance: Revenue reached $3.46 billion, up 69.7% year over year, while non-GAAP operating margin was 8.0% and diluted EPS was $3.31, both ahead of guidance. Core Sanmina revenue grew 17% with broad-based strength across end markets.
• AI and cloud infrastructure demand remains robust. The company reported a book-to-bill ratio above 1.1, additional customer wins for next-generation accelerated compute, and expanding programs across AI systems, networking, storage, high-technology PCBs, and system racks.
• Management raised confidence in its growth trajectory, projecting fiscal 2026 revenue of $14.0 billion-$14.3 billion and EPS of $11.90-$12.20, while expressing confidence in achieving more than $16 billion of revenue in fiscal 2027.
• ZT Systems’ fourth-quarter revenue outlook of $0.8 billion-$1.0 billion is below the prior implied guidance because of timing variability in legacy general-purpose compute and storage programs. The new accelerated-compute program is not included in fourth-quarter revenue and is expected to begin contributing in fiscal Q1 2027.
• The accelerated-compute ramp is expected to require increasing working-capital investment, which could pressure operating cash flow and free cash flow even as management views the spending as necessary to support future growth. Capital expenditures are projected at $135 million in the fourth quarter.

Sanmina Price Performance

SANM opened at $172.43 on Wednesday. Sanmina has a one year low of $103.95 and a one year high of $288.68. The company has a debt-to-equity ratio of 0.77, a current ratio of 1.71 and a quick ratio of 1.03. The company’s 50 day simple moving average is $235.12 and its 200-day simple moving average is $187.52. The stock has a market capitalization of $9.24 billion, a P/E ratio of 30.85, a price-to-earnings-growth ratio of 0.80 and a beta of 1.56.

Wall Street Analyst Weigh In

Several analysts have weighed in on SANM shares. Wall Street Zen cut shares of Sanmina from a “strong-buy” rating to a “buy” rating in a research note on Saturday, July 18th. Susquehanna initiated coverage on Sanmina in a report on Wednesday, April 1st. They issued a “neutral” rating and a $135.00 target price on the stock. Zacks Research lowered Sanmina from a “strong-buy” rating to a “hold” rating in a research report on Monday, June 29th. JPMorgan Chase & Co. cut their price objective on Sanmina from $275.00 to $260.00 and set a “neutral” rating for the company in a research report on Tuesday. Finally, Weiss Ratings upgraded Sanmina from a “buy (b-)” rating to a “buy (b)” rating in a report on Wednesday, July 15th. Two investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, Sanmina has a consensus rating of “Hold” and an average price target of $198.33.

Insider Activity at Sanmina

In related news, Director David V. Hedley III sold 500 shares of the business’s stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $219.52, for a total value of $109,760.00. Following the completion of the transaction, the director owned 7,376 shares in the company, valued at $1,619,179.52. The trade was a 6.35% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Jonathan P. Faust sold 10,076 shares of the company’s stock in a transaction on Friday, May 29th. The stock was sold at an average price of $265.80, for a total value of $2,678,200.80. Following the transaction, the chief financial officer directly owned 77,000 shares in the company, valued at approximately $20,466,600. This represents a 11.57% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 129,944 shares of company stock worth $30,093,464. Company insiders own 3.10% of the company’s stock.

Hedge Funds Weigh In On Sanmina

Several hedge funds have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd bought a new stake in Sanmina during the 3rd quarter worth about $26,000. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Sanmina by 182.5% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 339 shares of the electronics maker’s stock valued at $51,000 after purchasing an additional 219 shares during the last quarter. Steward Partners Investment Advisory LLC grew its position in shares of Sanmina by 235.5% during the 4th quarter. Steward Partners Investment Advisory LLC now owns 369 shares of the electronics maker’s stock worth $55,000 after buying an additional 259 shares during the period. Kestra Advisory Services LLC acquired a new stake in shares of Sanmina during the 4th quarter worth approximately $60,000. Finally, Danske Bank A S bought a new stake in shares of Sanmina during the third quarter worth approximately $69,000. Institutional investors own 92.71% of the company’s stock.

Key Stories Impacting Sanmina

Here are the key news stories impacting Sanmina this week:

• Positive Sentiment: Quarterly results exceeded expectations. Sanmina reported fiscal Q3 EPS of $3.31, well above the $2.77 consensus estimate, while revenue reached $3.46 billion versus expectations of $3.40 billion. Revenue increased 69.7% year over year, and EPS more than doubled from $1.53 a year earlier. Sanmina Reports Third Quarter Fiscal 2026 Financial Results
• Positive Sentiment: Management raised its full-year outlook. Fiscal 2026 EPS guidance was increased to $11.90-$12.20, above the $10.83 analyst consensus. Fourth-quarter EPS guidance of $3.05-$3.35 also exceeded the $2.81 consensus, supporting the company’s growth outlook. Sanmina Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: AI-related demand remains a key growth catalyst. Analysts highlighted momentum in AI infrastructure and cloud programs, new customer wins, strong execution and the integration of ZT Systems as factors supporting Sanmina’s longer-term expansion. Sanmina Q3 Earnings Call Signals AI Infrastructure Growth Strategy

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.