Sanmina (NASDAQ:SANM) Issues Earnings Results

Sanmina (NASDAQ:SANM) announced its quarterly earnings results on Monday. The electronics maker reported $3.31 EPS for the quarter, beating the consensus estimate of $2.77 by $0.54, FiscalAI reports. Sanmina had a return on equity of 16.23% and a net margin of 2.29%.The company had revenue of $3.46 billion for the quarter, compared to the consensus estimate of $3.40 billion. During the same quarter last year, the company posted $1.53 earnings per share. The company’s revenue for the quarter was up 69.7% compared to the same quarter last year. 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 Stock Up 0.2%

Shares of SANM opened at $208.90 on Tuesday. The company has a market capitalization of $11.20 billion, a P/E ratio of 44.16, a PEG ratio of 0.80 and a beta of 1.56. Sanmina has a one year low of $97.76 and a one year high of $288.68. The business’s 50 day simple moving average is $236.17 and its 200-day simple moving average is $187.39. The company has a debt-to-equity ratio of 0.77, a current ratio of 1.71 and a quick ratio of 1.03.

Analysts Set New Price Targets

A number of research firms have issued reports on SANM. JPMorgan Chase & Co. started coverage on shares of Sanmina in a report on Monday, March 30th. They set a “neutral” rating and a $145.00 price target for the company. Wall Street Zen lowered Sanmina from a “strong-buy” rating to a “buy” rating in a research note on Saturday, July 18th. Susquehanna assumed coverage on Sanmina in a research report on Wednesday, April 1st. They issued a “neutral” rating and a $135.00 price objective for the company. Zacks Research cut Sanmina from a “strong-buy” rating to a “hold” rating in a research report on Monday, June 29th. Finally, Weiss Ratings raised Sanmina from a “buy (b-)” rating to a “buy (b)” rating in a research report on Wednesday, July 15th. Two analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, Sanmina presently has a consensus rating of “Hold” and a consensus price target of $160.00.

Insider Activity

In other news, CFO Jonathan P. Faust sold 10,076 shares of the stock in a transaction on Friday, May 29th. The stock was sold at an average price of $265.80, for a total transaction of $2,678,200.80. Following the sale, the chief financial officer owned 77,000 shares in the company, valued at approximately $20,466,600. This represents a 11.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Alan Mcwilliams Reid sold 1,000 shares of the firm’s stock in a transaction on Friday, May 1st. The shares were sold at an average price of $218.17, for a total value of $218,170.00. Following the completion of the sale, the executive vice president owned 31,481 shares of the company’s stock, valued at approximately $6,868,209.77. This trade represents a 3.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 156,509 shares of company stock worth $35,699,476. 3.10% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Sanmina in the 3rd quarter valued at $26,000. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Sanmina by 182.5% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 339 shares of the electronics maker’s stock valued at $51,000 after acquiring an additional 219 shares during the period. Steward Partners Investment Advisory LLC boosted its holdings in Sanmina by 235.5% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 369 shares of the electronics maker’s stock valued at $55,000 after acquiring an additional 259 shares during the last quarter. Kestra Advisory Services LLC bought a new position in Sanmina in the fourth quarter valued at about $60,000. Finally, Danske Bank A S acquired a new stake in Sanmina in the third quarter worth about $69,000. Institutional investors own 92.71% of the company’s stock.

Sanmina News Roundup

Here are the key news stories impacting Sanmina this week:

• Positive Sentiment: Sanmina reported fiscal Q3 EPS of $3.31, well above the $2.77-$2.78 analyst consensus and more than double the $1.53 reported a year earlier. Revenue rose 69.7% year over year to $3.46 billion, exceeding estimates of about $3.40 billion. Sanmina Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: Management raised or provided favorable profit guidance: fiscal 2026 EPS is expected at $11.90-$12.20, above the $10.83 consensus, while fiscal Q4 EPS guidance of $3.05-$3.35 also exceeds the $2.81 consensus. Sanmina Reports Third Quarter Fiscal 2026 Financial Results
• Neutral Sentiment: The earnings call and presentation highlighted the quarter’s results and outlook, giving investors additional detail on the company’s operating performance and expected fourth-quarter results. Sanmina Q3 2026 Earnings Call Transcript
• Negative Sentiment: Revenue guidance was less compelling than the earnings outlook: fiscal 2026 revenue of $14.0-$14.3 billion is centered slightly below the $14.2 billion consensus, and Q4 revenue guidance of $3.3-$3.6 billion has a midpoint below the $3.5 billion estimate. This may have disappointed investors after the recent rally and strong earnings beat. Sanmina Beats Sales Expectations but Stock Drops

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.