Sanmina Corporation

Sanmina reported third-quarter fiscal 2026 revenue of $3.46 billion, up 69.7% versus the same period a year ago. Non-GAAP gross profit was $370 million, or 10.7% of revenue, up 160 basis points year over year. Non-GAAP operating profit was $275.8 million, or 8% of revenue, up 230 basis points year over year, and non-GAAP diluted EPS was $3.31, up 116% year over year. Core Sanmina revenue was $2.4 billion, up 17% year over year, while ZT Systems revenue was $1.1 billion. For Q4, management expects revenue of $3.3 billion-$3.6 billion, non-GAAP operating margin of 7.5%-8%, and non-GAAP diluted EPS of $3.05-$3.35. For full-year fiscal 2026, guidance is revenue of $14.0 billion-$14.3 billion, non-GAAP operating margin of 6.85%-7.25%, and non-GAAP diluted EPS of $11.90-$12.20.

Jure Sola said Sanmina delivered “another great quarter” and emphasized that the company is executing to plan. His comments focused on strong demand in cloud and AI infrastructure, expanding customer relationships, and the strategic value of combining Sanmina with ZT Systems to broaden capabilities across multiple platforms. Tone-wise, he was upbeat and confident, repeatedly pointing to a stronger company than a year ago and expressing conviction in a “$16 billion-plus” fiscal 2027 opportunity.

Jonathan Faust said results met or exceeded outlook across the board, with revenue at the high end of guidance and margin and EPS above expectations. He highlighted non-GAAP gross profit of $370 million, operating expenses of $94.7 million, and operating margin of 8%, noting favorable mix, cost discipline, and contributions from non-recurring engineering services. On the balance sheet, he cited cash and cash equivalents of $1.84 billion, no borrowings on the $1.5 billion revolver, approximately $4 billion of liquidity, inventory of $2.2 billion net of customer advances, and a net leverage ratio of 0.29x. He also said capex was $100.9 million in Q3 and is expected to be $135 million in Q4, while working capital will build as AI-related production ramps.

Analysts pressed on margins, asking whether the Q3 beat and Q4 guide reflected a lower ZT mix and how much non-recurring engineering helped. Management said the quarter benefited from mix and more engineering services than expected, and reiterated a long-term margin view of roughly 6%-7% while saying more detail would come with fiscal 2027 guidance. Questions also focused on ZT legacy programs, accelerated compute timing, and working capital; management said Q4 ZT revenue is being affected by timing shifts in legacy programs, the new accelerated compute program is not yet in Q4 revenue due to recognition timing, and working capital will rise as the business ramps. In response to questions about customer wins, management cited Cerebras as an additional platform win and said broader cloud and AI infrastructure demand is driving new programs across both core Sanmina and ZT-related operations.