Sanmina Corporation Earnings Recaps
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.
Key takeaways
- 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.
Sanmina reported a robust start to fiscal Q1 2026 with revenue of $3.19 billion and non-GAAP diluted earnings per share of $2.38, reflecting strong growth in key markets.
Key takeaways
- Revenue increased 59% year-over-year, driven by growth in communications networks and cloud/AI infrastructure.
- Non-GAAP operating margin held steady at 6%, attributed to favorable mix and operational efficiencies.
- Strong cash flow from operations totaled $179 million, supporting strategic investments for future growth.
Sanmina reported a robust fourth quarter for fiscal 2025, with revenue of $2.1 billion and a non-GAAP EPS of $1.67, reflecting a year-over-year revenue growth of 3.9% and significant operating margin expansion.
Key takeaways
- Total fiscal 2025 revenue reached $8.13 billion, up 7.4% year-over-year, driven by strong demand in communication networks and AI sectors.
- Non-GAAP operating margin improved by 30 basis points year-over-year to 5.7%, with a fourth quarter margin of 6.0%.
- Generated a strong cash flow from operations of $621 million, underscoring financial health and operational efficiency.
- Non-GAAP EPS for fiscal 2025 was $6.04, representing a 14.4% increase from the prior year.
- Continued strategic investments contributed to an increase in operating expenses, positioned for future growth.
Sanmina reported strong third-quarter fiscal 2025 results, with revenue of $2.04 billion and non-GAAP EPS of $1.53, reflecting robust demand across key markets.
Key takeaways
- Revenue increased 10.9% year-over-year, driven by strength in communications networks and cloud infrastructure.
- Non-GAAP gross margin improved to 9.1%, marking a 60 basis point enhancement from the previous year.
- Non-GAAP operating income reached $115.7 million, corresponding to an operating margin of 5.7%, consistent with the company's short-term targets.