Sanmina’s second quarter results were marked by significant year-on-year revenue growth, outperforming market expectations. Management attributed this jump primarily to robust demand for AI infrastructure and accelerated compute systems, as well as successful integration of ZT Systems. CEO Jure Sola explained that the quarter’s strength was “driven by accelerated compute shipments” and noted that Sanmina’s core business also delivered steady growth across major end markets. The company’s strong operational discipline and ability to adapt to customer demand shifts were central to its performance, with CFO Jonathan Faust highlighting the role of “disciplined cost management” and “operating leverage” as key contributors to the non-GAAP profit outperformance.
Is now the time to buy SANM? Find out in our full research report (it’s free for active Edge members).
Sanmina (SANM) Q1 CY2026 Highlights:
- Revenue: $4.01 billion vs analyst estimates of $3.27 billion (102% year-on-year growth, 22.8% beat)
- Adjusted EPS: $3.16 vs analyst estimates of $2.40 (31.8% beat)
- Adjusted EBITDA: $299.7 million vs analyst estimates of $238.7 million (7.5% margin, 25.5% beat)
- Revenue Guidance for the full year is $14 billion at the midpoint, above analyst estimates of $13.72 billion
- Adjusted EPS guidance for the full year is $11.05 at the midpoint, beating analyst estimates by 10.3%
- Operating Margin: 5.7%, up from 4.7% in the same quarter last year
- Market Capitalization: $11.97 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Sanmina’s Q1 Earnings Call
- Ruplu Bhattacharya (Bank of America) asked what drove ZT’s outperformance and whether it was related to AMD or NVIDIA products. CEO Jure Sola clarified shipments were all AMD-based and emphasized new business wins with hyperscalers and OEMs for future quarters.
- Samik Chatterjee (JPMorgan) questioned the timing and breadth of new ZT Systems customer wins. CFO Jonathan Faust detailed that while early shipments have started, substantial revenue impact is expected next year as new platforms reach production scale.
- Steven Fox (Fox Advisors) inquired about free cash flow sustainability and customer diversification for ZT. Faust explained that the quarter’s strong cash flow resulted from operational linearity, but future inventory builds will be needed to support new product launches and customer programs.
- Mehdi Hosseini (SIG) probed potential R&D investment needs as Sanmina transitions ZT from final system integration to more value-added ODM services. Sola and Faust confirmed that R&D spend will increase project-by-project as the company pursues vertical integration.
- Anja Soderstrom (Sidoti) asked about ongoing supply chain disruptions and their impact. Sola acknowledged ongoing material shortages, particularly for memory and ASICs, but noted that these have been factored into guidance and daily operations.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be watching (1) the ramp of next-generation AI and accelerated compute platforms as customer production schedules are finalized, (2) the pace of diversification and vertical integration in Sanmina’s core and ZT Systems businesses, and (3) Sanmina’s ability to manage ongoing component shortages without impacting revenue targets. Execution on new program wins and capital allocation will also be critical markers of progress.
Sanmina currently trades at $220.65, up from $188.08 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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