What guidance did Sanmina's management provide for the next earnings period?

What were the key takeaways from Sanmina's earnings call?

What is Sanmina's latest dividend and current dividend yield?

What is the revenue and EPS growth rate for Sanmina year over year?

What is the market's earnings forecast for Sanmina next quarter?

What is Sanmina's gross profit margin?

What were the key takeaways from Sanmina’s earnings call?

What factors drove the changes in Sanmina's revenue and profit?

- **Revenue Beat**: $3.19B (59% YoY), driven by ZT Systems ($1.96B) and core Sanmina growth.
- **Margin Expansion**: 6% operating margin, targeting 7%+ with AI vertical integration.
- **ZT Systems Momentum**: 50% of ZT revenue from AMD, 2026 run rate $5.7B+.
- **Cash Strength**: $1.42B cash, $92M free cash flow, $79M share buybacks.
- **2027 AI Vision**: $16+ billion in AI revenue, Houston factory for energy transformers.

**【CEO Summary Section】**
- Q1 2026 revenue: $3.19 billion (59% YoY growth), non-GAAP operating margin: 6.0%, EPS: $2.38.
- ZT Systems integration on track, contributing $1.96 billion in Q1.
- AI and data center growth drivers: 2027 target of $16+ billion in AI revenue, ZT Systems focused on AMD partnerships.
- New Houston factory for energy business, targeting 2027 production of medium voltage transformers.
- Operating margin expansion goal: 6-7%+ in the long term.

**【CFO Financial Commentary】**
- Gross profit: $298 million (9.3% of revenue), up 30bps YoY due to mix and operational efficiency.
- Operating expenses: $106 million (3.3% of revenue), down 10bps YoY.
- Free cash flow: $92 million, share buybacks: $79 million (516,000 shares).
- Q2 2026 guidance: Revenue $3.1-3.4 billion (62% YoY growth), EPS $2.25-2.55.
- Balance sheet: $1.42 billion cash, 0.8x net leverage, targeting 1.0-2.0x over time.

**【Q&A Key Highlights】**
- **Revenue Growth**: Core Sanmina up 20% YoY in Q1, ZT Systems at high end of guidance. Q2 2026 guided to $3.25 billion midpoint.
- **ZT Systems Transition**: 50% of ZT revenue from accelerated compute (AMD), 2026 target $5.7 billion annualized.
- **Operating Margin**: 6%+ sustained in Q1, long-term 7%+ achievable with vertical integration.
- **Cash Allocation**: $87M capex in Q1, $95M expected in Q2 for AI and energy expansion.
- **Market Trends**: Strong demand in communications networks (400/800G switches), medical recovery, stable defense/aerospace.


Sanmina Corporation (SANM) Q1 2026 Earnings Call Transcript

- **$8.13B FY25 Revenue Growth**: 7.4% YoY driven by cloud/AI, non-GAAP EPS up 14.4% to $6.04.
- **ZT Systems Acquisition**: Adds $5.7B annual run rate, targeting $16B+ revenue by 2027.
- **Q4 2025 Results**: $2.1B revenue, 9.4% gross margin, $1.67 EPS (16.7% YoY growth).
- **2026 Outlook**: Legacy Sanmina high single-digit growth, ZT contributing $5.7B+, 5.6%-6.1% operating margin.

**【CEO Summary Section】**
- Fiscal 2025 revenue reached $8.13 billion, up 7.4% year-over-year, driven by strong performance in communication networks and cloud/AI end markets.
- Non-GAAP EPS of $6.04 (14.4% YoY growth) and operating margin of 5.7% reflect disciplined execution and margin expansion.
- Completed ZT Systems acquisition, adding $5.7 billion annual run rate and enhancing AI infrastructure capabilities.
- 2026 guidance: Legacy Sanmina revenue growth in high single digits, ZT Systems contributing $5.7B+ annualized, targeting $16B+ revenue by 2027.

**【CFO Financial Commentary】**
- Q4 2025 revenue $2.1B (3.9% YoY growth), non-GAAP EPS $1.67 (16.7% YoY), exceeding expectations.
- Gross margin improved 70bps to 9.4%, driven by product mix and operational efficiency.
- Operating expenses $70M, up 3.9% YoY, reflecting strategic investments in growth initiatives.
- Cash flow from operations $621M for the year, with $926M cash on hand and no debt on revolver.
- 2026Q1 guidance: Revenue $2.9B-$3.2B, operating margin 5.6%-6.1%, EPS $1.95-$2.25.

**【Q&A Highlights】**
- ZT Systems integration: 2-month post-acquisition revenue $850M-$1.05B, operating margin in-line with legacy business (5.6%-6.1%).
- Legacy Sanmina growth: Industrial/energy/medical segments expected to accelerate in 2H26, automotive short-term softness offset by new programs.
- Cash flow: Legacy business maintains strong cash conversion, ZT working capital needs to be monitored.
- India joint venture: Expanding AI capabilities with new factory in 2026.
- Auto segment: New programs expected to offset near-term weakness.

Sanmina Corporation (SANM) Q4 2025 Earnings Call Transcript

- **Q3 Growth**: Revenue up 10.9% YoY to $2.04B, EPS $1.53 (+22.8% YoY), driven by 19.1% growth in communications networks and cloud infrastructure.
- **ZT Acquisition**: $5-6B annual run rate, closing Q4 2025. Adds U.S./Europe manufacturing for data center AI, targeting non-GAAP EPS accretion in first year.
- **Margins & Cash Flow**: Gross margin 9.1% (+60bps YoY), free cash flow $168M Q3, $114M shares repurchased YTD.
- **FY26 Outlook**: Base business growth ~7%, ZT to double revenue within 3 years. Tariffs may shift manufacturing but costs passed to customers.

**【CEO Summary Section】**
- **Q3 2025 Performance**: Revenue of $2.04 billion (+10.9% YoY), non-GAAP EPS of $1.53 (+22.8% YoY), driven by growth across all end markets, particularly communications networks (+19.1% YoY) and cloud infrastructure. Operating margin of 5.7% (target range 5%-6%).
- **ZT Systems Acquisition**: Expected to close by end-2025, adding $5-6 billion annual net revenue and doubling Sanmina's revenue within 3 years. Acquired ZT's U.S. and European manufacturing capabilities to expand data center AI end-to-end solutions. Anticipated non-GAAP EPS accretion in first year post-closure.
- **Strategic Focus**: Invest in data center AI infrastructure, liquid cooling systems, and advanced printed circuit boards. Targeting >6% operating margin long-term. FY25 revenue growth guidance of 6%-8%.

**【CFO Financial Commentary】**
- **Q3 Financials**: GAAP net income $102 million, non-GAAP gross margin 9.1% (+60bps YoY). Operating expenses $70.3 million, up 3.7% YoY due to strategic investments. Free cash flow $168 million, share buybacks $114 million YTD.
- **Balance Sheet**: Cash $798 million, no debt, net cash position. Inventory turns 6.3x (vs. 5.1x YoY). FY25 capex ~1.8% of revenue, targeting $65 million Q4.
- **Outlook**: Q4 2025 revenue $2.0-2.1 billion (midpoint +6.8% YoY), non-GAAP EPS $1.52-1.62. FY25 free cash flow >$400 million.

**【Q&A Highlights】**
- **ZT Systems Risks**: Inventory valuation assessed pre-close; $2 billion working capital target includes $250M PPE. ZT's legacy GPU inventory risk mitigated via customer demand alignment.
- **FY26 Growth**: Base business expected to maintain FY25 growth rates (~7%), with ZT driving acceleration. Tariffs may influence regional manufacturing but costs borne by customers.
- **India JV**: JV with Reliance in India performing well, expanding into defense, automotive, and data center AI. JV equity interest adjustment ~$4M/Q4.


Sanmina Corporation (SANM) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: Q2 $1.98B (+8.1% YoY), H1 +7.6% YoY, driven by 20%+ Communication Networks & Cloud.
- **Margin Expansion**: Gross margin 9.1%, operating margin 5.6%, targeting 6%+ long-term.
- **Cash Flow Strength**: $221M H1 cash flow, $84M buybacks, $253M remaining under program.
- **Expansion Catalysts**: $100M+ India investment, U.S. PCB/circuit board capacity, Mexico mechanical systems.
- **Tariff Resilience**: 63% U.S. manufacturing, agile global network to mitigate trade risks.
- **AI Growth**: 37% of revenue from data center systems, new AI programs accelerating in H2.

**【CEO Summary Section】**
- Q2 2025 revenue reached $1.98 billion, up 8.1% YoY, driven by growth across all end markets, with Communication Networks and Cloud Infrastructure up 20.3% YoY.
- Non-GAAP EPS of $1.41 exceeded expectations, reflecting operational efficiency and margin expansion.
- Key investments in India, Mexico, and U.S. for data center and AI-related capacity, targeting 6%+ operating margin long-term.
- Tariffs remain a concern, but Sanmina's global footprint (63% U.S. manufacturing) provides flexibility to mitigate risks.

**【CFO Financial Commentary】**
- Q2 GAAP revenue $1.98B, non-GAAP gross margin 9.1% (up 20bps YoY), operating margin 5.6% (up 20bps YoY).
- Strong cash flow ($157M Q2, $221M H1) supporting $84M share buybacks and $253M remaining under program.
- FY25 guidance: 6-8% revenue growth, 8.6-9.0% gross margin, $1.35-1.45 EPS Q3.
- CapEx expected at ~2% of revenue, with focus on high-margin end markets.

**【Q&A Key Themes】**
1. **Tariffs & Supply Chain**: Customers exploring alternative manufacturing locations, but no material shifts yet. Sanmina's global network (100-acre India campus, 800k sq ft Mexico) positions for post-tariff growth.
2. **Demand Trends**: Communication Networks (routers/switches +20%), Industrial (+2.1%), Automotive (+double digits) show resilience. Inventory normalization underway, with 5.9x net inventory turns Q2.
3. **Expansion Plans**: $100M+ India investment for data center solutions; U.S. PCB/circuit board capacity expansion; Mexico mechanical systems growth.
4. **AI & Data Center**: Full system integration for racks, cooling manifolds, and custom modules driving 37% of revenue. New AI-related programs expected to accelerate in H2.

**【Financial Highlights】**
- H1 2025: Revenue +7.6% YoY, EPS +8.8% YoY.
- FY25 Free Cash Flow: $173M YTD, targeting $250M+.
- ROIC: 23% Q2, above WACC.
- Balance Sheet: $647M cash, $1.5B liquidity, 0.48x gross leverage.

Sanmina (SANM)-28 Apr 25-2025 Q2 Earnings call transcript

- **Q1 2025 Strong Execution**: $2.01B revenue (+7% YoY), $1.44 EPS, driven by 19% YoY growth in cloud infrastructure.
- **FY25 Growth Outlook**: High-single-digit revenue growth, 5-6% operating margin, EPS growth > revenue.
- **Cloud Infrastructure Expansion**: End-to-end solutions, liquid cooling, and new customer programs fueling 19% YoY growth.
- **Margin Expansion Path**: Targeting 6%+ operating margin with scale, component business growth, and operational efficiency.
- **Capital Allocation**: $300M buyback authorization, strategic M&A for growth.

**【CEO Opening Remarks】**
- Q1 2025 revenue of $2.01 billion, up 7% YoY, driven by growth in communications networks and cloud infrastructure (19% YoY). Non-GAAP EPS of $1.44, up 10.8% YoY.
- Highlighted new program ramps and customer inventory normalization, with book-to-bill ratio of 1:1.
- FY25 outlook: High-single-digit revenue growth, operating margin stabilization at 5-6%, and EPS growth outpacing revenue.

**【CFO Financial Highlights】**
- Non-GAAP gross margin 9.0% (up 20bps YoY), operating margin 5.6% (up 10bps YoY), free cash flow $47M.
- IMS segment revenue $1.62B (+7.8% YoY), CPS $416M (+5.4% YoY). Cloud infrastructure revenue $737M (37% of total).
- Q2 2025 guidance: Revenue $1.9-2.0B, non-GAAP EPS $1.30-1.40, operating margin 5.3-5.7%.
- Announced $300M share buyback authorization, maintaining disciplined capital allocation.

**【Q&A Key Takeaways】**
- **Cloud Infrastructure Growth**: End-to-end solutions, liquid cooling investments, and new customer programs driving 19% YoY growth. No single customer >10%.
- **Inventory Correction**: Customer inventory normalization nearing completion, with positive demand signals in communications networks.
- **Margin Expansion**: Targeting 6%+ operating margin with scale, component business expansion, and operational efficiency improvements.
- **Capital Allocation**: Prioritize M&A for growth, with share buybacks as undervaluation hedge. FY24 returned 100% of free cash flow to shareholders.

Actual											0.32	0.86	1.1	1.02	1.01	0.99	0.95	1.08	1.14	1.3	1.5	1.64	1.59	1.55	1.42	1.3	1.3	1.25	1.43	1.44	1.41	1.53	1.67	2.38
Forecast											0.5536	0.3515	0.7753	0.8144	0.8349	0.911	0.992	0.9502	1.0114	1.1141	1.3333	1.3821	1.55	1.535	1.535	1.2233	1.252	1.28	1.3625	1.3633	1.3767	1.4167	1.57	2.13
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	-42.20%	+144.67%	+41.88%	+25.25%	+20.97%	+8.67%	-4.23%	+13.66%	+12.72%	+16.69%	+12.50%	+18.66%	+2.58%	+0.98%	-7.49%	+6.27%	+3.83%	-2.34%	+4.95%	+5.63%	+2.42%	+8.00%	+6.37%	+11.74%

SANM

SANM fundamentals

SANM Q1 2026 Earnings

Earnings Call

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SANM

SANM fundamentals

SANM Q1 2026 Earnings

Earnings Call

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SANM Earnings Call Summary for Q1/20255:00 PM on Jan 27, 2025

You can ask Aime