Shares of Sanmina surged 12.1% following earnings, with the market responding positively to better-than-expected revenue, margin performance, and accelerated demand in the ZT Systems business. Upside across key financial metrics, including a 102% year-over-year revenue jump and a 125% increase in diluted EPS, supported the stock’s strong move.

• Revenue reached $4.0 billion for Q2, up 102% year-over-year, significantly exceeding management’s prior outlook.
• ZT Systems business delivered $1.88 billion in revenue, with some shipments pulled forward from later quarters due to strong customer demand.
• Non-GAAP operating margin improved to 6.4%, up 80 basis points versus the prior year and marking a third straight quarter above 6%.
• Non-GAAP diluted EPS was $3.16, up 125% year-over-year, reflecting strong operating leverage.
• CPS segment revenue rose 12.2%, though its non-GAAP gross margin declined 230 basis points, offset by overall favorable mix and margin expansion in other areas.