Sanmina 2025 Q4 Earnings Net Income Dips 22.8% Amid 3.9% Revenue Growth

Sanmina (SANM) reported fiscal 2025 Q4 earnings on Nov 14, 2025, with revenue rising 3.9% year-over-year to $2.10 billion but net income declining 22.8% to $51.97 million. The results reflect mixed performance, with revenue growth outpacing earnings contraction. The company raised guidance for the next quarter, signaling confidence in its strategic initiatives, including AI and cloud infrastructure expansion.

Revenue

Sanmina’s total revenue increased to $2.10 billion in Q4 2025, a 3.9% rise compared to $2.02 billion in the prior-year period. The growth underscores resilience in its core electronics manufacturing services (EMS) segment amid macroeconomic uncertainties.

Earnings/Net Income

Earnings per share (EPS) fell 20.9% to $0.90, while net income dropped to $51.97 million, a 22.8% decline from $67.34 million. The EPS contraction indicates a challenging quarter for profitability despite revenue gains.

Price Action

SANM’s stock surged 21.55% month-to-date but dipped 5.84% in the latest trading week. The post-earnings rebound highlights investor optimism amid strategic bets on long-term growth.

Post-Earnings Price Action Review

Sanmina’s stock has historically shown resilience after revenue misses, with a notable 30-day rebound observed in backtesting. Analysts project a $158.50 price target (22% upside from $137.87), driven by the company’s 10.9% year-on-year revenue growth and aggressive cloud/AI acquisitions. Strong financial health, including a 0.32x leverage ratio and $137.87 cash position, further supports its growth trajectory. The electronics manufacturing services sector’s expansion into AI and cloud infrastructure positions Sanmina to capitalize on emerging markets.

CEO Commentary

Sanmina’s CEO emphasized operational efficiency and strategic acquisitions as key drivers for future growth. “Our disciplined capital allocation and focus on high-margin markets position us to deliver sustainable value,” stated CEO John H. Ross. The leadership team highlighted confidence in next-quarter guidance, which exceeds analyst expectations, citing momentum in cloud and AI infrastructure demand.

Guidance

Sanmina raised its next-quarter revenue forecast, projecting growth above current analyst estimates. The company anticipates margin expansion through cost optimization and strategic investments in AI/ML capabilities, aligning with long-term operational efficiency goals.

Additional News

Sanmina finalized the acquisition of ZT Systems in October 2025, enhancing its AI infrastructure capabilities. The deal, valued at $450 million, accelerates its entry into edge computing solutions. Additionally, the company announced a $200 million share repurchase program, reflecting confidence in its net cash position. No executive changes were reported during the 30-day period.